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.
Financial Times – Despite a good few weeks for Mexico — a successful oil auction; a $1.3bn investment by retailer Walmart; and a bond issue from state oil company Pemex that was six times oversubscribed — a dark, Donald Trump-shaped cloud is looming.
The US president-elect has vowed to renegotiate the North American Free Trade Agreement, or Nafta, that has turned its neighbour into a car, computer, TV and aerospace manufacturing powerhouse. The threat is a crackdown on reshoring to cheap destinations such as Mexico by slapping a 35 per cent tariff on goods imported back into the US by companies that shift jobs or plants abroad.
While Trump has dropped talk of scrapping Nafta outright, Latin America’s second-biggest economy is bracing for uncomfortable changes to a 22-year-old status quo that has transformed it into the US’s second largest trade partner behind China.
Reuters – Mexican and U.S. business leaders will share information on cross-border economic integration as they seek to build a case for free trade under the government of President-elect Donald Trump, a top industry group said.
Bloomberg – Although China and Mexico both trade a lot with the U.S., and have both been running significant trade surpluses with the U.S. for decades, that’s where the similarity ends. The China-U.S. trade relationship is spectacularly unbalanced, with a gap between goods exports and imports that exploded not long after China joined the World Trade Organization in 2001 and that, while it has subsided a bit since last year, is still of a scale never seen before “Chimerica” came into being.
Bloomberg – Mexico is overtaking Canada as the No. 2 exporter of goods to the U.S. this year, in a sign of how economic ties have deepened between the two countries even as the relationship is being questioned by President-elect Donald Trump.
CNBC – Wilbur Ross, President-elect Donald Trump’s choice for Commerce secretary said he wants to overhaul “dumb trade” deals that the U.S. has with countries around the world. “Believe it or not, Mexico has better treaties with the rest of the world than the United States has. We’re going to fix that,” Ross said as his nomination was being announced.
Financial Times – The US risks harming its own interests in any renegotiation of the North American Free Trade Agreement, as planned by Donald Trump, José Antonio Meade, Mexico’s finance minister, has warned.