DALLAS (Nov. 1, 2016) — The Mexican peso, which serves as a proxy for the nation's economic future, has jumped up and down for weeks as shifting polls show Hillary Clinton winning the race for the presidency or, conversely, Donald Trump closing the gap.
Mexican auto industry officials look on the situation more calmly, said Guillermo Rosales, co-director of the Mexican Automobile Distributors Association. Still, they are aware of the stakes in the election given Trump's sharp opposition to the trade ties that have been instrumental in forging an industry boom in recent years.
“It's not like our mood is changing every day,” said Mr. Rosales. “We have a risk map that indicates first and foremost that nothing has been decided yet, even though Clinton has recovered in the polls in the last weeks. You still can't rule out a Trump win.”
Rosales: 'Can't rule out' Trump
In fact, Mr. Rosales said, the Mexican industry is looking at what the presidential race will mean for the overall economy no matter who wins, since the campaign has pushed both candidates away from talk of more free trade and toward protectionism. That is the opposite of what's healthy for Mexico, the U.S. and the world, he said.
If Mr. Trump were to force a renegotiation of the North American Free Trade Agreement (NAFTA), or cancel it entirely, “it would have a big impact not only on the auto industry, which it absolutely would, but on Mexico's economy in general,” Mr. Rosales said.