Mary O’Grady writes about Mexico’s Options in a Trump Trade War. The country could impose retaliatory duties and look for new trade partners. Mexican Economy Minister Ildefonso Guajardo
told Reuters on Nov. 10 that his government is “ready to talk so we can explain the strategic importance of Nafta for the region. Here we’re not talking about . . . renegotiating it, we’re simply talking about dialogue.”
He also said Mexico will look for new markets, adding to more than 40 existing free-trade agreements. It had hoped for expanded opportunities via the proposed Trans-Pacific Partnership, a 12-nation accord that includes the U.S. and much of Asia. But President Obama wasn’t able to get TPP through Congress and Mr. Trump has promised to kill it. Mr. Guajardo said that Mexico will pursue the possibility of completing a smaller TPP with the countries that are expected to have ratified it by the end of 2016. He named Japan, New Zealand, Australia, Singapore, Vietnam and Malaysia. Australia would probably be eager to replace the U.S. as Mexico’s chief food supplier.
I’m more of a wait-and-see person. Trump famously starts negotiations with outrageous demands, and Peña Nieto had also mentioned he wanted NAFTA renegotiated.
In other headlines:
Mexico Lifts Rates Amid Peso’s Fall, Trump’s Rise. A weaker peso and the U.S. election weigh on the economy, driving action by the central bank
Frontman for disgraced Mexican governor handled $7m property portfolio. Further details emerge about activities of Moisés Mansur and his links to Javier Duarte. Mansur is now on the lam,
The Mexican authorities allege Mansur is part of a complex network of more than 30 companies and proxies set up by Duarte, who disappeared on October 15 after being accused of embezzling some $26 million during his tenure as the ruling Revolutionary Institutional Party (PRI) governor of Veracruz, where he left a public debt of $837 million.
Jobs which many of us assumed would go to Mexico as a result of NAFTA went to China instead. In any event, it is better to have a gainfully employed Mexican working in a factory exporting to the US instead of having that Mexican migrate to the US, legally or otherwise.