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Analysis from KPMG and Eurasia Group says strong disagreements on key issues and a timeline imposed by pending elections in Mexico mean complications could be on the horizon.
“While we think the possible withdrawal of NAFTA is unlikely, the strong divisions across the three countries on the key issues is increasing the risk that a deal can’t be reached in the near term,” said Russ Crawford, partner at KPMG in Canada. “It is time for companies to start making contingency plans. You may think that NAFTA renegotiations are not likely to pose a material threat to your business, but in these uncertain times, these risks may be unpredictable.”