Tag Archives: Nafta

U.S. triggers 90-day waiting period for NAFTA negotiations

Frenemies
Frenemies

On May 18, the Trump administration sent formal notice to the U.S. Congress that it intends to renegotiate the terms of the North American Free Trade Agreement (NAFTA) between the United States, Mexico and Canada.  The move initiates a 90-day waiting period before actual negotiations may begin, during which business groups can provide their input on the pact and the U.S. negotiating team may draw up its objectives and strategy for the talks with Mexico and Canada.  U.S. President Donald Trump has called NAFTA “the worst deal in history” and “a disaster” and threatened to unilaterally withdraw the United States from the accord, however in recent weeks he has toned down his statements and backed renegotiation rather than withdrawal.  Mexico is strongly in favor of maintaining the NAFTA agreement, and facing the prospect of cancellation of the pact, has embraced the negotiations. Continue reading U.S. triggers 90-day waiting period for NAFTA negotiations

Cross-border families facing acute uncertainty

No me llames frijolero
No me llames frijolero

Since the election of Donald Trump as President of the United States, concern over how this will affect Mexico has vaulted to the forefront of public debate on this side of the border.  We worry about all the new problems we (probably? maybe?) will have from topics on the table such as NAFTA repeal, mass deportations, the border wall, etc. We wring our hands publicly about the plight of Mexican migrants in the USA, but mostly we’re thinking about what will become of us here at home.  For this reason, we asked a colleague based in the United States to provide us some perspective from north of the border, particularly with regard to the impact on binational families such as his.  Journalist Steve Cannon lived in Mexico City for many years before moving to the United States with his family in 2016.  As a family including both U.S. and Mexico passport holders – of which there are many in both countries – the Cannons now face challenges and uncertainty that may not have seemed apparent before last November’s presidential election.  Mexico Business Blog greatly appreciates the thoughts that Steve has shared with us, which follow below. Continue reading Cross-border families facing acute uncertainty

Mexico frantic to diversify export markets for some reason

He loves me, he loves me not
He loves me, he loves me not

Now that the United States is loudly breaking up with Mexico on social, Mexico is suddenly on the prowl for hot rebound trade with other markets.  This is how it looks from here anyway, with Mexican officials popping up all over the media saying some country or other is going to be a big new market for Mexican exports.  The new U.S. administration’s threats to dismantle the North American Free Trade Agreement (NAFTA) are currently stoking the flames of economic terror in Mexico, but we all know that Mexico’s dependency on the U.S. export market has been the stuff of economists’ nightmares for decades.  To put it in perspective, the share of Mexico’s annual exports shipped to the USA has not dropped below 79% since some time before 1993, if it ever has.  From 1998 to 2001, the concentration of Mexican exports destined for the U.S. market hovered near a truly bloodcurdling 89%.  So it’s not like we didn’t know we were exposed to risk from overdependence on one market, but after 25 years of trade-loving U.S. governments, we became accustomed to living in denial. Continue reading Mexico frantic to diversify export markets for some reason