May 19, 2020

What Australian businesses need to know about NAFTA

Donald Trump
Harry Allan
4 min
What Australian businesses need to know about NAFTA

Insolvencies are on the rise in the United States of America and Canada, while increased volatility in Mexico is expected to continue until US President-elect Donald Trump’s policy towards its southern neighbour becomes clear.

A report from trade credit insurer, Atradius, has revealed that Australian businesses need to be careful when doing business with participants in the North American Free Trade Agreement (NAFTA).

Mark Hoppe, managing director ANZ, Atradius, said, “The USA, Canada and Mexico are facing difficult market conditions. This doesn’t mean Australian companies should steer clear of doing business with organisations in these countries but it does mean it’s important to ensure that any business dealings have been well-considered and that the Australian organisation is protected by trade credit insurance.”


In the USA, corporate insolvencies increased in 2016 as exporting businesses struggled with lost competitiveness due to a stronger US dollar and ongoing problems in the oil and gas sector. Many companies are highly leveraged and access to bank funds and capital markets has reduced. In 2017, insolvencies are set to decrease very slightly.

Overall, US economic growth is expected to rebound in 2017, mainly driven by domestic demand and exporters continue to suffer from a strong US dollar. Consumer confidence and business sentiment could be dampened due to volatility in the world economy and international markets.

Mark Hoppe said, “On the plus side, unemployment is set to fall again in 2017 and job security has increased. This could help drive increased private consumption, which can contribute to economic growth. Unfortunately, average wage growth has been modest since 2009 but, fortunately, household debt as a share of GDP has decreased from almost 100 percent in 2007 to 78 percent in 2015. Consumers are likely to welcome cheaper imported products as a way to save money.”


Canadian corporate insolvencies increased in 2016 but are likely to decrease slightly again in 2017, and growth is expected to rebound. However, as the world’s fifth-largest oil producer, Canada has been affected by the decrease in oil prices since mid-2014, triggering a major decrease in investment. Economic growth is slow at approximately two percent.

There is some uncertainty presented by US President-elect Donald Trump’s potential to introduce more protectionist trade policies or renegotiate NAFTA, which could have a negative impact on Canada’s economy.

Mark Hoppe said, “The Canadian manufacturing industry is unlikely to take over from the energy sector as it has lost competitiveness internationally as a result of currency depreciation and high wage costs. The current account deficit is likely to decrease to 1.7 percent of GDP in 2017 but any future trade frictions with the USA could dampen Canada’s export performance in the future.”


The Mexican peso has been hit hard by Donald Trump’s election, depreciating by more than 10 percent following the election. This volatility is expected to continue until President-elect Trump’s policies towards its southern neighbour become clearer.

Mark Hoppe said, “The peso depreciation has pushed up inflation and the Bank of Mexico has increased the benchmark interest rate several times in the past 12 months. Rate hikes to more than five percent are likely. However, this monetary policy negatively impacts domestic demand in times of an already-sluggish GDP growth rate. And there are increasing concerns about government creditworthiness, with growing public debt and rising spending pressures.

“Add to this ongoing domestic political instability, fuelled by drug-related crime and widespread corruption, and consumer confidence and business sentiment are understandably subdued. If President Trump makes good on his promises to impose import tariffs on Mexican goods, impose capital controls over remittances, and order mass deportations of illegal immigrants, then the projected Mexican GDP growth rate of about two percent in 2017 and 2018 could end up much lower.

“However, it’s not all doom and gloom in Mexico. The country’s fiscal framework has improved and tax revenues have increased. A flexible exchange rate and solid external balances, with limited external refinancing needs, underpin Mexico’s resilience. Crucial reforms have also been passed to overcome the economy’s structural weaknesses such as low earnings capacity, limited fiscal flexibility and high dependency on volatile portfolio capital inflows.

“The bottom line when doing business with companies from any of these three countries is to thoroughly research the individual organisation as well as having a robust understanding of the economic and political climate in which it operates. Australian companies must protect themselves with trade credit insurance, which has the added bonus of providing them with risk management information regarding many of the organisations they may look to do business with.”

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Jun 22, 2021

Digital Leader Mobiquity Expands Into Asia-Pacific

3 min
Mobiquity pursues a vision of global growth with its first APAC hire—Gustavo Quiroga, its new Vice President of Business Development Financial Services

As an international digital consulting firm, Mobiquity helps a global client base upgrade its digital banking and financial services. The company employs 1,200 team members across 50+ nationalities and serves an estimated 200+ million users each day. Recently, the company built out a digital banking experience for the Bank of the Philippines Islands’ online and mobile platforms—exemplifying its mission to help leading brands engage with technology in meaningful ways. 


To highlight Mobiquity’s services, here are a few of the company’s recent accomplishments


  • Designed and developed the first FDA-approved digital medicine system
  • Launched a five-star mobile ordering app
  • Pioneered a cloud-based IT infrastructure that prevented bank fraud
  • Built the official AWS re:Invent 2017 and 2018 mobile apps 


What Makes Mobiquity Stand Out? 

According to Mobiquity, it's the people that make all the difference. ‘We’re born innovators who like meaty challenges’, the company wrote. ‘We go deeper, getting to the root of your customers’ friction and creating personalised engagements that deliver much more than a digital experience alone’. Now, the company has added former Microsoft and IBM director Gustavo Quiroga to its team. 


Who Is Gustavo Quiroga? 

At Mobiquity, he’ll be the first Vice President of Business Development Financial Services in APAC. With years of experience in the industry, Quiroga has developed numerous tech, business, and customer experience projects: at Microsoft, he led a top Aussie Azure Data and AI specialist team, and at IBM, he applied AI and deep analytics to transform the company’s business processes, CX, and UX. 


Based in Sydney, Australia, Quiroga will start to work with Mobiquity clients in Singapore, Vietnam, and the Philippines and take responsibility for expanding the company’s regional operations. ‘Our best way to impact client outcomes’, he wrote, ‘is by listening to them with an inquisitive and open mind and empowering our people to do the same’. 


When notified of the announcement, Quiroga expressed excitement over his new role. ‘I’m delighted to join Mobiquity and support the company’s rapid expansion across the Asia-Pacific region. I joined Mobiquity to develop, design and implement digital products and services that create meaningful experiences with customers...and I look forward to using my expertise to develop partnerships where we can achieve this every day’. 


Where Does Mobiquity Go From Here? 

In the past six months, Mobiquity has hired over 100 new employees, including the high-profile additions of Howard Moore, Senior Director of Banking, and Ruby Walia, Senior Advisor for Digital Banking. This falls in line with the company’s hyper-growth strategy to deliver digital products to the world. 


As Matthew Williamson, Mobiquity’s Vice President of Global Financial Services, explained: ‘Our appointment of Gustavo demonstrates [our] commitment to hiring an A-list team of talent. The latest addition to the Mobiquity team supports our vision of global growth in Asia-Pacific, as a recognised partner within the banking and finance ecosystem’.


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