Gordon Brothers released an article that discusses the United States-Mexico-Canada trade agreement (USMCA) and outlines some of its most important implications for asset valuation.
On the heels of the USMCA becoming effective, Alex Sutton, managing director and head of research at Gordon Brothers, gives insight into the potential outcomes of the deal, such as changes in the supply chain, shifts in local economies, increases in costs, and opportunities in certain sectors — all factors that can significantly impact asset values.
“The USMCA addresses some of the weaknesses of NAFTA, particularly in relation to intellectual products as well as content rules, but it does not address climate change and it does not incorporate carbon content or credits mechanisms, which will likely be a major feature of other trade deals going forward,” Sutton said. “The agreement will impact cost structures, product mix, commodity prices, local market dynamics and a wide range of other operating issues.”
The new article, titled “Why the USMCA Matters for Asset Valuation,” is available here.
Gordon Brothers is a global advisory, restructuring and investment firm.
