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if mexico doesn't buy the $2.3 billion of corn and $1.4 billion of soybeans, no one else will, and therefore 'will cause $13 billion in losses to American farmers.'
I guess its the common core math they are teaching now.
Mexico and Canada both enjoy the benefit of sitting next to the world's largest and most voracious consumer economy. The only rival to that market is China. Even the EU is moribund in comparison. They aren't going to jeopardize that long-standing partnership.
If there is less foreign demand for US crops in Mexico, then the price goes down for the domestic consumer. Not a bad thing unless you're in farming... and we already heavily subsidize US crops for them to remain competitive anyway.
Mexico's economy is far more dependent on the US than the other way around. Major corporate and industrial presence in Mexico of American corporations. The Autopista Queretaro running north from Mexico city is lined with factories from major American brands - Gatorade, Ford, BIC, etc. Those jobs aren't going anywhere (though they could...plenty of other countries would be happy to have those jobs).
Mexico's greatest contribution to the US economy is a source of low-skilled and low-wage labor, easily exploitable. Not sure if that's really a good thing though.
A few points to make about the effects of the Trump's presidency as it relates to Mexico. The payoff may take some years but it will pay off if things continue on it current trajectory.
1) As others have stated, more Mex-Americans (probably illegals mostly) are returning to Mexico after the Trump became president and the 2007-08 recession. There was an article in the LA Times about families moving back to Mexico after they where here illegally. These families have mostly Mexican national parents and American born or Americanized children meaning the children have a very good understanding of English. When they go back to Mexico, they will develop their Spanish language skills so they will be bilingual which from a business perspective is very important for a nation. So as these children grow, they will help Mexico grow their economy and nation and remember the treatment they received in the US as children as they were forced out.
2) The other migrant children such as the DACA children are being educated, trained and employed in American institutions. More than likely most of the DACA children were Mexicans. The DACA children are developing world-recognized skills (math, science, law, finance, economics, engineering, etc.) especially those already in universities, colleges and workplaces around the US. These skills and talents will be greatly accepted in Mexico by both the government and Mexican companies. They will contribute to the Mexican economy now and in the future.
3) The cost of living in Mexico is lower than US across the board especially in the major cities between the two countries. Families have more disposable income and Mexico City is highly ranked as an expat destination for expats in several articles and has rising in rankings for the past couple of years. So more disposable income, more jobs being created and more revenue being pumped in the economy. Why do you think the NFL and NBA are having more games in Mexico City in recent years and is being identified as a possible expansion destination for another team in their respective leagues? Just food for thought.
I live in Mexico and read the local and national papers. Mexico is already making deals with Brazil on produce and meats; Brazil wants more MXN products. MX is in talks with China for trade deals.
I first lived in MX in 2008. Now, almost 10 years later, the economy is very strong. I am near Guadalajara, MX's 2nd largest city with a real middle class...a prosperous middle class that have a lot of discretionary income. Guadalajara has become home to many tech companies, too.
The US can cut its ties to MX, but MX will be fine.
Many americans are grossly ignorant of Mexico. they think everyone who crosses the border is mexican and think everyone in mexico is a dirt poor farmer.....
the short termism of Trump is simply stunning. He runs around throwing bombs like an internet troll, and does not give a damn what damage he is doing long term. It really is a shame he fell assbackwards into Obama'a excellent economy.
Realistically, there is this little thing called payment for the goods exported to countries that are verging on complete bankruptcy, like Venezuela. Or those having already defaulted twice since 2001, and still not terribly strong, as is the case with Argentina, even today.
The moral of the forgoing? There is always more to ‘news’, then meets the eye. News stories generally are placed for a reason. Sorry to disappoint those who thought this is yet another sign. It is not.
Quote:
Originally Posted by LINative
A lot of what you are reading is politics in Mexico, anti-Trump propaganda from the pro-free trade business community/establishment and diplomacy. In diplomacy, nations try to show they have options, sometimes as a strength but also to hide weakness. Both Mexico and Canada want to show they have options other the United States, but the truth is the USA is their best option compared to the others.
To add to what Kibby said, if Mexico wanted to replace the USA as a trading partner with countries like Venezuela, Brazil, Guatemala or as you say Argentina, if it made more sense then trading with the USA - it would have happen already years ago.
Many americans are grossly ignorant of Mexico. they think everyone who crosses the border is mexican and think everyone in mexico is a dirt poor farmer.....
the short termism of Trump is simply stunning. He runs around throwing bombs like an internet troll, and does not give a damn what damage he is doing long term. It really is a shame he fell assbackwards into Obama'a excellent economy.
Agreed. Trump is looking at Mexico from the short game versus the long game. There will be long term effects from Trump's policy changes towards both Mexico and Canada but Mexico in particular.
Agreed. Trump is looking at Mexico from the short game versus the long game. There will be long term effects from Trump's policy changes towards both Mexico and Canada but Mexico in particular.
Mexico had already been considering how it could reduce its dependency on US food stuffs. Trump provided the push and the MANDATE a leader needs to make this kind of large scale shift.
China is also looking to reduce its dependency on US food stuffs, thus they are looking to Mexico to provide them with high quality pork.
Trump enjoys whipping up nationalistic hysteria to fuel his base of support, but he fails to understand it is a double edged sword. Trump's adversarial approach to almost every issue creates more problems than is solves and it erodes what little goodwill we have left in the world.
If being a butthead was an effective way to handle international trade we would all be doing it all the time. it does not work, instead trump simply gives premiers around the globe a handy whipping boy.. (trump/us)
Utter BS that most illegals come by plane. Most illegals are border jumpers and that's why we need the wall. Visa over stayers will have to be addressed in a different way, obviously.
Utter BS that currently most illegals come across the border. At present more than half the new arrivals are from overstay. Fact of life. So the wall goes after the smaller part of the problem. Keeps you right wingers happy though because you think it targets Hispanics.
Good, let them. Now maybe we can use all that food that we export to feed our own people instead of importing it from other countries. Globalism is so stupid in that arena. We export stuff we grow here then turn around and import the same crap back for our people. It's idiotic.
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