In the article by Patrick
Gillespie he mentioned how Mexican Senator Armando Rios introduced a new legislation
that will cut down Mexico’s purchase of US Corn. According to the article
Mexico bought about 25% of all US corn, which gave the US about $2.6 billion
dollars in profit. Trump has mentioned that when it comes to NAFTA, the free
trade with Mexico it benefits Mexico more than it benefits the US. However,
Senator Rios disagrees with Trump and has therefore decided to reduce their
imports of US corn. Rios hopes that in 3 years they will not be buying any corn
from the US. This legislation can potentially cost US farmers their jobs since
Mexico is one of the biggest consumer of corn. If they are to reduce their
import it can potentially affect our economy as well as our free trade with
other countries.
The legislation also states
that they will look into trade deals with other Latin American or European
countries. This legislation comes after Trump statements about how he is to
impose a tariff on Mexican goods to fund the Mexican-US border wall.
Article: http://money.cnn.com/2017/02/22/news/economy/mexico-us-corn/index.html?iid=SF_LN
2 comments:
It will be interesting to see how the economy will react to the Trade wars he seems to be proposing. Even before he has had a chance to impose his tariffs other countries are preparing. It's rare for me to hear any economist state that trade is a bad thing for a country but we will see how the economy responds to isolationism.
Even though it seems that the free trade benefits Mexico more than it benefits the US in the NAFTA, the trade between Mexico and the US is still a win-win game. It's interesting to see how Trump will act to the new legislation. The problem is not only decreasing corn trade, but also Mexico is seeking to build trade relationship with other Latin American and European countries. Once the relationship is built up, it will be hard for America to get partners back.
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