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
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
On August 18, 2010, the Mexican government published an updated list of U.S. products on which import duties will be applied, beginning August 19, 2010. The duties were originally introduced in March 2009 in retaliation for the U.S. Congress’ termination of a pilot program allowing Mexican freight trucks to cross the border to complete deliveries in the United States. Cross-border trucking, including the circulation of Mexican trucks in the United States, was intended to be implemented under the North American Free Trade Agreement (NAFTA), but is currently blocked by the United States.
The original list of 89 products affected by the Mexican duties has now been expanded to 99, by the addition of 26 items and removal of 16. The current list includes key agricultural products in addition to processed foods, household goods and personal care items, among others. Import duties under the scheme range from 5% to 25%. Continue reading Trucking dispute yields new duties