Oct. 2 at 2:37 AM
$BNS.TSX
$BNS
Let’s examine U.S. trade with Mexico in the context of Canadian banks.
Mexico has now become America’s largest trading partner, with bilateral trade exceeding
$800 billion. Over the 31 years since NAFTA was implemented, Mexico has become deeply integrated into U.S. supply chains, significantly diversified its export mix, and strengthened its balance of payments. Notably, it was also among the first major emerging markets to transition successfully from fixed to floating exchange rates.
Against this backdrop, one would expect Bank of Nova Scotia—given its large presence in Mexico and Latin America—to be well positioned to capture growth from rising North American trade flows. Yet the stock has remained stagnant, trading near
$64.80 USD. This raises the question: what structural, strategic, or management issues are preventing Scotiabank from translating its geographic advantage into shareholder value?
