Throughout the fourth quarter of 2017, pundits and business media in general in Mexico have focused mainly on the jarring ups and downs of NAFTA renegotiations between the United States, Mexico and Canada. As the year winds down, this topic has lately been eclipsed by the passage of tax reform legislation in the U.S., and at least on this side of the border, how it might affect the Mexican economy going forward. These high profile issues have served to overshadow an economic development initiative in Mexico that otherwise might have captured more attention: The declaration of Zonas Económicas Especiales (ZEE), or Special Economic Zones, aimed at stimulating investment in six southern states. Continue reading Mexico launches Special Economic Zones
In March 2017, approximately two months ago, we accompanied representatives of a funding organization to the city of Tijuana to learn about the impact of Haitian immigration in the area. Tijuana, an industrial city located on the U.S.-Mexico border near San Diego, California, is well known as a last stop for migrants from Mexico and other Latin American countries before trying to enter the United States, legally or otherwise. Our colleagues at the foundation had provided funds for local organizations assisting the Haitian migrant community and they wanted to see how the money was being spent. What we found was truly remarkable. Continue reading Haitian migration impacting Tijuana economy and culture
The victory of Donald Trump in the U.S. presidential election of November 8, 2016 casts a dark, cold shadow over the relationship between the United States and Mexico. On one hand, Mr. Trump has expressed his opposition to the North American Free Trade Agreement (NAFTA), which we support. Since entering into effect in 1994, this agreement has been implemented painstakingly through tremendous effort by all sides, and has built a trade relationship in which Mexico represented a market of US$267 billion for U.S. goods and services in 2015. Putting up barriers to the Mexican and Canadian markets for U.S. exporters for the presumed purpose of saving jobs in the United States risks destroying many of the jobs this trade has created.
But for Mexicans, the election of Mr. Trump cannot help but be seen as a deeply personal affront. Throughout the campaign, the U.S. President-elect repeatedly expressed disdain and derision toward Mexican immigrants in the United States, which many people in this country take as a personal insult to all Mexicans. Mr. Trump is a crass boor. But the fact that a majority of American voters validated his harshly worded opinions about Mexicans (not to mention Muslims, women and other people) sends a clear and chilling message to Mexico and to the world that the American people share these opinions and values. This stunning revelation will now hang like a toxic cloud over every business meeting, trade mission, trade show and even long-running relationships between business people in the two countries. We can only hope that the intelligence and personal grace of individual business people will help to buffer the damage the election of Donald Trump will do to the U.S.-Mexico relationship. But make no mistake, the resentment is deep, and this cannot be good for our economic and personal relations going forward.