Ten years ago we were crawling around in the smoldering wreckage of the 2008 financial crisis, hoping to survive the economic nuclear winter on grubs and bark. Heaven knows there were some lean times there but somewhere along the way things must have turned around because in more recent years, to hear the media tell it, the North American economy had become Biggie Smalls, spending its days smoking blunts and drinking Cristal with chickenheads in a jacuzzi and it was all good. Biggie’s long dead of course and the media are now auguring a similar fate for the NAFTA-zone economy, and much like back-to-school, we feel like we’re not ready for the heady summer of fun to end. Continue reading Economic slowdown the talk of the town
Mexico’s Senate voted June 19 to ratify the USMCA trade agreement, making Mexico the first of the three North American countries to reach this milestone. The vote of 114 in favor to five against demonstrates the firm support for free trade on the part of Mexican President Andrés Manuel López Obrador (AMLO) and his Morena party, which holds more than twice as many Senate seats as the largest opposition party. Interestingly, four of the five votes against the USMCA came from members of the president’s own party, further underscoring the broad support for the deal across the political spectrum. With Canada seemingly moving ahead toward ratification, concern in Mexico appears to be focused on internal political struggles in the United States that could potentially derail ratification in the region’s largest economy. Continue reading Mexican Senate ratifies USMCA
As the ink dried on the edict removing U.S. import tariffs from Mexican and Canadian steel and aluminum, U.S. President Donald Trump stunned NAFTA traders May 30 with the announcement of a major new trade war against Mexico. The program calls for implementation as of June 10 of a 5% import tariff on “all goods imported from Mexico”, with the stipulation that the duty rate will rise by five percentage points per month up to 25%. The tariffs are intended to force Mexico to stop the flow of migrants to the U.S. border, according to the president’s tweet. Mr. Trump has not yet released his plan to impose tariffs on FIFA to boost the USMNT’s ranking or punitive duties on the Kingdom of the North for intemperate behavior, but we presume these are on his ink blotter as we type. Continue reading Yeeee Haw, more tariffs!