Upcoming NAFTA Negotiations Could Prove Beneficial to Mexico - IMF Official

The upcoming negotiations over the NAFTA treaty have boosted uncertainty for Mexico but the talks could ultimately benefit the country, First Deputy Managing Director of the International Monetary Fund (IMF) David Lipton said in a statement after talks with senior Mexican officials.

WASHINGTON (Sputnik) — Lipton visited Mexico from July 16 to July 18 and exchanged views on the country's economy with senior officials including Bank of Mexico Governor Agustin Carstens, Finance Secretary Jose Antonio Meade and Foreign Secretary Luis Videgaray, as well as academics and representatives of the private sector.

"While uncertainty over future trade relations with Mexico’s largest trading partner has increased, the upcoming NAFTA negotiations offer an opportunity to update a 20-year old treaty in a way that would benefit Mexico and all the treaty’s signatories," Lipton said on Tuesday.

Though the country's economy faces important challenges and risks, including a temporary rise in inflation and increased global financial market volatility, Mexico's economy continues to grow and show resilience, Lipton said.

"This is a testament to the country’s fundamentals, prudent macroeconomic management, and a very strong policy framework, which underpins Mexico’s qualification for a Flexible Credit Line Arrangement with the IMF. Mexico remains in a good position to manage risks and pressures emanating from the global economic and financial environment," he added.

Lipton said continued effort to implement structural reform would be critical to boosting growth potential.

He added that key energy reforms underway would also allow Mexico to boost oil production over the next 20 years.