Moody’s highlights Mexico’s ’flaws’
Mexico’s economy has structural flaws that won’t be resolved with the upcoming renegotiation of the North American Free Trade Agreement, credit rating agency Moody’s said on Wednesday. Mexico has for years relied on its poorly paid workforce to compete with other economies, and that is part of what is holding the country back, Moody’s said in a report. When Mexico, the United States and Canada signed NAFTA and put it into effect in 1994, the trade deal was expected to help strengthen the Latin American country, “but Mexico has not attained the stellar growth rates that were anticipated from liberalizing its economy”. What’s more, “wage and productivity gaps with the US have widened rather than shrunk”, the agency said in a new report.