NEW YORK (TheStreet) -- Mexico's peso is reeling from the global market downturn following the U.K. referendum to leave the U.K., but some are optimistic about Mexico's outlook.
Ricardo Salinas, Founder and Chairman of Group Salinas -- a business conglomerate which owns independent companies in television, telecommunications, finance, and more -- believes Mexico's plethora of trade agreements will buoy the country to success.
"Mexico has a very competitive position in trade balance so we're not so worried about that," Salinas told CNBC's Kelly Evans on "Power Lunch." "Mexico has a very sound fiscal and monetary policy ... so [the weakening of the peso is] a case of arbitrage, you know, trying to cover your losses somewhere by shorting the peso."
Salinas points to the statistical benefits of the NAFTA trade agreement as the reason behind free trades benefit, for all parties involved. He gave an example of the steel industry to show the adverse effects of the barriers to trade.
"If one industry gets hit, let's say the steel industry, everybody complains and talk about lost jobs but nobody is looking at all the benefits of the low prices of steel for the rest of the economy, hotel construction, lower rents," Salinas said.
The rise of protectionism is "really unfortunate" in Salinas' view, as "leaders ought to know that protectionism is an idea that's been discredited for ages."
"Free trade is about freedom, about choice. And protectionism just is good for special interests who are very loud and vocal," Salinas added.
Additionally, Salinas says "the one thing that unfortunately [Mexico's] not doing well is the justice system" and the overwhelming "failed war" on drugs, which is what is the biggest issue facing the country in the upcoming 2018 presidential election.