BlackRock warns annual USMCA reviews will cloud Mexico's investment outlook
BlackRock, the world's largest asset manager, says the newly introduced annual reviews of the USMCA trade agreement will inject fresh uncertainty into investment decisions in Mexico. The firm still considers it unlikely that Mexico will lose its investment-grade sovereign credit rating.
BlackRock said the annual review mechanism now built into the USMCA trade agreement will add a fresh layer of uncertainty for investors weighing exposure to Mexico. The asset manager, which oversees trillions of dollars globally, said the recurring reviews create a less predictable environment than the deal's previous multi-year renewal cycle.
Despite the added uncertainty, BlackRock said it considers it unlikely that Mexico will lose its investment-grade sovereign credit rating in the near term, citing the country's still-solid fiscal fundamentals. Analysts at the firm said Mexico's manufacturing and nearshoring advantages remain intact even as trade-policy risk rises.
The warning comes as Mexico navigates a broader period of economic uncertainty, with policymakers seeking to reassure foreign investors ahead of the next scheduled USMCA review. Businesses with cross-border supply chains said they are watching the review process closely for signs of new tariff or regulatory disputes.
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