U.S. trade representatives' proposals to update the North American Free Trade Agreement point to the possibility of increased trade flows between Mexico and the United States, Moody's Investors Service says in a fresh analysis.

With the first round of Nafta negotiations to begin Aug. 16, and clarity last week from the Office of the United States Trade Representative (USTR) on where things are headed, here are excerpts from a report authored by Moody's Jaime Reusche:

Moody's...