WSJ – Mexico ran up a trade deficit of $3.29 billion in January, similar to the year-ago gap as oil prices rose from a year before, pushing up both exports and imports of petroleum. About 80% of Mexico’s exports go to the U.S.
CBC – It might be too early to say where the renegotiation of the North American Free Trade Agreement will lead, but the foreign ministers of Canada and Mexico already agree they don’t want to sacrifice one relationship for another.
Reuters – The leaders of Brazil and Argentina said on Tuesday they would pursue closer ties with Mexico and other Latin American nations alarmed by U.S. President Donald Trump’s promises to tear apart trade deals and build a wall to protect American jobs.
FT – A South American farming company backed by investors including George Soros aims to sell grain to Mexico as it capitalizes on the country’s deteriorating trade relations with the US since Donald Trump’s arrival as president.
Financial Times – The potential collapse of the Nafta economic bloc could have a huge global impact, Mexican officials have warned, as they prepare to fall back on World Trade Organisation rules amid fears Washington could torpedo the global trade body.
“I hope the world understands that what happens . . . [with the North American Free Trade Agreement is going to be very telling for the rest of the world,” Ildefonso Guajardo, Mexico’s economy minister, said.
Radionz – The scramble to salvage free trade deals in the wake of the collapsed Trans Pacific Partnership (TPP) has started, with Mexico wanting a free trade deal with New Zealand and five other countries: Australia, Brunei, Malaysia, Singapore and Vietnam.
Al Jazeera – Many Mexicans feel they can get behind: a renegotiation or cancellation of Nafta. Several national peasant organizations and labor unions have been fighting for the cancellation of Nafta’s agriculture chapter since negotiations started in 1990. Now that Donald Trump is in the White House, they see a rare opportunity to make that demand a reality.
WSJ – President Enrique Peña Nieto said Wednesday that the clock was starting on a remaking of NAFTA, with Mexico beginning a 90-day period to consult with its private sector and prepare a negotiating position, and expecting the U.S. to do the same.
By Ben Chapman / Independent
The European Union and Mexico will speed up negotiations to seal a free trade pact, as U.S. President Donald Trump threatens to pull out of a deal with its Central American neighbor, hit the country with punitive border taxes and make it pay for a border wall.
The move has been triggered by a “worrying rise of protectionism around the world”, EU Trade Commissioner Cecilia Malmström, and the minister of economy of Mexico, Ildefonso Guajardo said in a statement on Wednesday.
“Side by side, as like-minded partners, we must now stand up for the idea of global, open cooperation,” the two said.
Reuters – U.S. food producers and shippers are trying to speed up exports to Mexico and line up alternative markets as concerns rise that this lucrative business could be at risk if clashes over trade and immigration between the Trump administration and Mexico City escalate. Mexico is expected to import about 4 percent of the U.S. corn crop in 2016/1 and buys 7.8 percent of U.S. pork production.
Business Insider – The tariff proposal, which the Trump administration walked back saying it was just one option being considered, could make goods from Mexico more expensive. That could pose a huge problem for restaurant chains like Chipotle that heavily rely on Mexican imports.
Reuters – Ordering a bottle of Corona beer at a bar in the United States is a simple proposition. Getting it there from its brewery in Mexico involves a complex, cross-border supply network that will likely get more complicated if U.S. president Donald Trump follows through on vows to renegotiate the North American Free Trade Agreement (NAFTA) or tax imports.
Washington Post – If the trade war is coming, how would Mexico fare? Mexico is not without leverage if this dispute escalates. Top economic officials have already said that Mexico would “mirror” any additional taxes or tariffs that the United States imposes. Former officials have said that Mexico could also tax corporate profits from the many American companies with operations in Mexico.
Mother Jones – How much would a 20 percent tariff on Mexican imports cost us? There is one bit of raw data that you might as well get familiar with since it’s not going to change. Here are our top 20 imports from Mexico:
WSJ – The situation between President Donald Trump and Mexico could get rather ugly. A recession in Mexico can backfire for the US – including bringing more of what the “great wall” is trying to prevent. Moreover, the supply chain running through Mexico’s factories is incredibly complex and could result in disruptions and price increases in unexpected areas. US refineries also will lose their key customer.
Washington Post – By cozying up to Russia, and in his disdain for NATO, President Trump appears to have flipped decades of U.S. foreign policy thinking on its head. It has left many experts puzzled, and plenty outraged.But for anyone trying to figure out Trump’s worldview, here’s a really interesting way of looking at things, courtesy of John Robb, who runs the Global Guerrillas blog and is an author and military analyst.
Robb argues that trade — rather than national security — dominates Trump’s foreign policy thinking, inverting decades of U.S. practice. By implication, that makes any country running a large trade surplus with the United States a direct competitor.
By Veronica Gomez and Alexandra Alper / Reuters
Mexico could pull out of the North American Free Trade Agreement if a renegotiation of its terms does not benefit Latin America’s second largest economy, Economy Minister Ildefonso Guajardo said on Tuesday.
“There could be no other option. Go for something that is less than what we already have? It would not make sense to stay,” Guajardo said when asked on local television if Mexico could pull out of the trade deal with Canada and the United States.
U.S. President Donald Trump has vowed to withdraw from NAFTA, which took effect in 1994, if he cannot renegotiate it to benefit American interests.
Trump formally withdrew the United States from the Trans-Pacific Partnership on Monday and said he would renegotiate NAFTA “at the appropriate time.”
Senior U.S. and Mexican officials will meet this week in Washington to discuss trade, security and immigration. Mexican President Enrique Pena Nieto and Trump will meet at the end of January.
By Kristen Welker / NBC
President Donald Trump is expected to sign an executive order as early as Monday stating his intention to renegotiate the free trade agreement between the United States, Canada and Mexico, a White House official told NBC News.
Eliminating the North American Free Trade Agreement (NAFTA), which was crafted by former President Bill Clinton and enacted in 1994, was a frequent Trump campaign promise.
The deal was intended to eliminate most trade tariffs between the three nations, increase investment and tighten protection and enforcement of intellectual property.
“We will be starting negotiations having to do with NAFTA,” Trump said Sunday at a swearing-in ceremony for his top White House advisers. “We are going to start renegotiating on NAFTA, on immigration and on security at the border.”
U.S. manufacturing exports to Canada and Mexico, the United States’ two largest export markets, increased 258 percent under the agreement, according to the website of outgoing U.S. Trade Representative Michael Froman, and the deal helped create a trade surplus in agriculture and manufactured goods.
Reuters – Mexico’s state oil company Pemex began receiving imported fuel by train at a new privately run terminal for the first time in January as companies expand storage and transportation operations under the country’s energy opening, a senior executive said in an interview.
Nasdaq – Mexico registered an unexpected $200 million trade surplus in November as exports of manufactured goods posted double-digit gains and oil exports rose from a year before, the National Statistics Institute said Friday. Exports rose 11.1% to $34.47 billion, while imports increased 5.1% to $34.27 billion.