Mexican Trade Policy Changes
According to a recent Reuters Business & Financial New article, Mexico plans to open
up new trade in light of President Trump’s threats to pull out of the North American Trade Agreement. Mexico is highly dependent on U.S. trade, with 80% of the country’s goods ending up in the U.S. A collapse in trade would be devastating to our neighboring country. But negotiation with the U.S. is stalling as the President endeavors to restrict agricultural trade and further demands a large share of the Mexican automotive industry. This is raising concern for the Mexico’s future. Therefore, the country is being preemptive and preparing for the worst case-scenario by seeking different avenues of trade, growing foreign investment, and considering changing tariffs, while at the same time lobbying to defend NAFTA (Graham, 2017).
up new trade in light of President Trump’s threats to pull out of the North American Trade Agreement. Mexico is highly dependent on U.S. trade, with 80% of the country’s goods ending up in the U.S. A collapse in trade would be devastating to our neighboring country. But negotiation with the U.S. is stalling as the President endeavors to restrict agricultural trade and further demands a large share of the Mexican automotive industry. This is raising concern for the Mexico’s future. Therefore, the country is being preemptive and preparing for the worst case-scenario by seeking different avenues of trade, growing foreign investment, and considering changing tariffs, while at the same time lobbying to defend NAFTA (Graham, 2017).
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