Mexico hopes for the best in tough Mexico-US Negotiations
A tough negotiation on trade is expected between United States and other neighboring countries such as Canada and Mexico now that the American election is through and Donald Trump won.
Fortune noted that President Trump said before election as part of his campaign pledge that he will impose a 35% tax on any American car companies who would build car manufacturing in Mexico. This statement alerted Ildefonso Guajardo, former North American Free Trade Agreement negotiator and Mexico's seasoned economy minister to keep an eye to the incoming trade war if Donald Trump would stick to his promise.
The Guardian reported that Mexico now is looking ahead for another negotiation about Trump's pledge to require Mexican government to pay 5 to 10 billion dollar to build a wall along the US-Mexico border that if Mexico would fail to give he said he will stop the 24 billion dollar remittances every year undocumented Mexican workers in America is making.
Now that Trump opens the way for renegotiation Mexico is looking for something to get even. One they think would is the fructose, corn and pork American exporters. They would suffer great loss if Mexico will stop buying since it is the second biggest export market worth 200 billion dollar.
In connection to Trump's statement that if American car companies will build car plants in Mexico, carmakers such as Ford will take away employment in America Mexico reasoned out that labor fees in Mexico for manpower is considerably low if compared to America, thus companies would really prefer Mexico.
Another point Mexico is possibly gaining is that it is the security buffer for the US and partner in fighting illegal immigrations. It was reported that Mexico stopped 150,000 out of 300,000 illegal immigrants coming from Central America going to the US through Mexico. That is a big help to consider. Shannon O'Neil at the Council on foreign relation said that if US-Mexico ally become tumultuous, Mexico might be reluctant in stopping those illegal immigrants.
But whatever those things are still Mexico relied on mercy Trump would give. Thus, Mexican President Enrique Pena Nieto would be forced to accommodate Trump's demands without meaningful negotiations, as said by Eurasia group.
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