Multinational companies operating in Mexico are facing a great deal of uncertainty. The possibility of a contentious renegotiation of the North American Free Trade Agreement (NAFTA) has led to delayed or canceled investments in what has been one of Latin America’s most economically stable markets. Mexico’s fast-approaching July 2018 general election, of which the populist leftist candidate Andrés Manuel López Obrador is the current frontrunner, is further making the case for incremental investments by multinationals corporations. While consumer spending has proven resilient, with same-store retail sales rising 6% YOY in April, most multinational corporations are developing contingency plans to mitigate risks to their businesses and reassessing the country’s role in their global market portfolio and supply chains.
What a Changing NAFTA Could Mean for Doing Business in Mexico
Multinationals, take note.
June 20, 2017
![](/resources/images/article_assets/2017/06/jun17-20-508481007.jpg)
Summary.
Multinational companies operating in Mexico are facing a great deal of uncertainty, with the possibility of a contentious renegotiation of the North American Free Trade Agreement and the fast-approaching general election in July 2018, where the current frontrunner is populist leftist candidate Andres Manuel Lopez Obrador. Most multinational corporations are developing contingency plans to mitigate risks to their businesses and reassessing the country’s role in their global market portfolio and supply chains. They are preparing for a number of different scenarios, each producing different economic and political changes in the country, that could affect their businesses.
New!
![](/resources/css/images/hmm/HBR-learning-icon.png)
HBR Learning
![](/resources/images/hmm/Course_Illustrations/Global_Collaboration_Course/topic_landing_page_1400.png)
Global Collaboration Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Global Collaboration. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to overcome barriers when working globally.
Learn More & See All Courses
New!
HBR Learning
![](/resources/css/images/hmm/HBR-learning-icon.png)
Global Collaboration Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Global Collaboration. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to overcome barriers when working globally.
![](/resources/images/hmm/Course_Illustrations/Global_Collaboration_Course/topic_landing_page_1400.png)