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.
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.