NAFTA & the Opportunities for Private Equity

August 2017

NAFTA reform is being floated as a key policy priority for the new U.S. presidential administration. Canada and Mexico represent the U.S.’s second and third largest trading partners, respectively, with a focus on energy, agriculture, consumer goods and automotive trade. A robust trade relationship since NAFTA’s implementation has led to increased cross-border investment interest and opportunities among private equity firms. How might the U.S. administration’s position on North American trade impact how private equity firms approach cross-border investments? To better understand what is at risk, here are the latest numbers on deal flow and cross-border trade activity among the three countries.



North American 2016 Trade Statistics



Canada Spotlight

Impacts of shifting trade policies to the Mexico-U.S. relationship are largely dominating headlines, but the potential ramifications for U.S. trade with Canada cannot be overlooked. Canada trails China for the No. 1 spot as the U.S.’s top trading partner, and the two nations have a vibrant and longstanding trade relationship—with energy ranking as a top trading commodity.