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BRIEF-Fitch Says Tentative US-Mexico-Canada Trade Agreement Cuts Macro, Financial Uncertainties For Mexican Banks

Published 2018-10-19, 11:21 a/m
© Reuters.  BRIEF-Fitch Says Tentative US-Mexico-Canada Trade Agreement Cuts Macro, Financial Uncertainties For Mexican Banks

Oct 19 (Reuters) - Fitch:

* FITCH SAYS TENTATIVE US-MEXICO-CANADA TRADE AGREEMENT SHOULD REDUCE BROAD MACRO & FINANCIAL UNCERTAINTIES RELATED TO TRADE PROTECTIONISM FOR MEXICAN BANKS

* FITCH SAYS PASSAGE OF USMCA WILL ELIMINATE NAFTA ABROGATION AND TARIFF RISKS THAT HAVE THREATENED MEXICAN ECONOMIC GROWTH

* FITCH SAYS REMAINS UNCERTAIN HOW KEY PROVISIONS IN AGREEMENT RELATED TO MEXICO'S LARGE AUTO INDUSTRY WOULD AFFECT BANKING SECTOR

* FITCH SAYS INDIRECTLY, USMCA COULD BE SIGNIFICANT, GIVEN POTENTIAL OUTSIZED EFFECT ON CERTAIN AREAS OF ECONOMY, NOTABLY AUTO SECTOR

* FITCH SAYS PROVISIONS REQUIRING MINIMUM $16/HOUR WAGE FOR CERTAIN PCT OF CAR, TRUCK COMPONENTS COULD AFFECT FUTURE CAPITAL INVESTMENTS IN MEXICO

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