order to ensure that brexit - induced corporate reorganisations do not compromise the ability of supervisors to hold firms to account in terms of regulatory expectations and maintain financial stability in an effective manner. of course, the ultimate impact of brexit will depend on the outcome of the negotiations between the eu and the uk. in addition to obtaining clarification on the nature of the new steady - state framework for trade in financial services between the eu and the u. k., it will also be important to specify transition arrangements, especially given the long - term nature of many financial contracts. it follows that the provisional brexit plans that are currently being formulated may have to be revised over time, if the course of these negotiations take unexpected twists. the value of optionality is high in the current environment : as the negotiations unfold, some options will lose value, while others will gain. accordingly, both firms and regulators will need to be pragmatic in recognising the inevitability of periodic revisions to business plans during this phase and the importance of a transitional period to avoid potentially - disruptive cliff effects in the workings of the financial system. the recent speeches by sabine lautenschlager have described some of the guiding principles in the context of transitioning of firms, for example in relation to the conditional use of existing internal models. finally, turning to the regulatory approach of the central bank of ireland, we have adopted a consistent position in relation to brexit - related supervisory queries. our regulatory approach is in line with sound practices being agreed across europe ; our responsibility is to ensure that firms authorised to operate from ireland demonstrate compliance with eu requirements. to this end, we seek to ensure that an entity will be substantively run from ireland and that the setup permits effective supervision, with local management accountable for decision making. 2 from a supervisory perspective, it is simply not sustainable to entertain proposals that fall short of these basic requirements. we are committed to providing transparency, consistency and predictability in our regulatory decisions. since ireland is already home to a large - scale international financial services centre, we have considerable experience in dealing with authorisation of financial firms. we are setting up new teams in order to manage brexit - related authorisation queries across banking, insurance, investment firms, investment funds and financial market infrastructures. this is part of a broader initiative to expand staffing levels in the bank in view of the expansion of our mandate in recent 2 / 3 bis

and from other nations has being growing in view of advantages from business opportunities arising from their greater commercial interaction. 1 the benefits of this association have accrued to both nations, but being the less developed economy, mexico has profited in particular. one direct effect of mexico ’ s opening to trade has been a trend towards product specialization and efficiency, a result of fiercer competition from abroad as well as multiplied opportunities to send goods to the world ’ s largest market. from 1980 to 2010, mexican exports to the united states rose from 5. 0 percent of gdp to 23. 1 percent, while mexican imports from the united states increased from 5. 7 percent of gdp to 14. 0 percent. during the same period, fdi from the united states to mexico grew by more than 1. 8 times in constant dollars, while workers ’ remittances, most of which come from the united states, increased 32 times. bis central bankers ’ speeches of course, this transformation has not been a zero - sum game, as suggested by the complementary roles that the two countries have played in certain expanding sectors, such as mexico ’ s in - bound maquiladora and auto industries. more importantly, and as predicted by theory, both economies have benefited from a wider availability of goods and services at lower prices. 2 mexico ’ s economic integration with the united states has not prevented it from expanding transactions with other nations and regions. in fact, the rapid growth of flows to and from the united states has coincided with a decline in the relative importance of the united states as a trade and investment partner. this observation is consistent with a previous finding that any possible trade diversion stemming from nafta has been more than surpassed by total trade creation. 3 an implication of the tight links between the two nations is that the mexican economy is very cyclically synchronized with the united states, especially in manufacturing production, for which the correlation is more than 0. 9. this effect has been enhanced during the last fifteen years, a time period in which mexico has undertaken sounder fiscal and monetary policies, thus avoiding previously recurrent currency crises. the global financial turmoil in 2008 and 2009, the epicenter of which was the united states, affected mexico more profoundly than many other emerging markets, given its close ties with the larger country. the persistence of some structural problems and the unusually weak ongoing recovery in the united states have led some to advocate the diversification of mexico ’ s international economic relations away from its northern neighbor. while this notion