Investors remain skittish as Lopez Obrador enters his second year in office.
Trade and investment among the U.S., Canada and Mexico languished over the uncertain fate of NAFTA.
One reason Lopez Obrador may be reluctant to change course on the auctions is fear of upsetting the leftist wing of the diverse movement that backs him. Rocio Nahle, the energy minister, has championed the state’s historic primary role in producing crude. Lopez Obrador is wary of making decisions that could tip the balance in his Cabinet and among his base, according to one person close to him.
Multinationals that have operated in Mexico for decades haven’t abandoned the country; foreign direct investment grew by 7.8% in the first three quarters of the year. The replacement for the North American Free Trade Agreement could soon go into effect.
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