World Politics Review | Trump's Trade Threats Have Pushed Mexico and China Closer Together

World Politics Review | Trump's Trade Threats Have Pushed Mexico and China Closer Together

With talks to renegotiate NAFTA deadlocked this week over the hard-line positions of the Trump administration, Mexico was again left pondering the fate of its biggest trade relationship. Negotiations over the trade deal will now extend into next year, heightening both the economic uncertainty and Mexico’s desire to branch out, as countries like China look to expand their stake in the Mexican economy. In an email interview, Carin Zissis, editor-in-chief of AS/COA Online, the website of the Americas Society/Council of the Americas, discusses the evolving nature of Mexico’s ties with China, how a change in NAFTA could affect them, and why Mexico is looking to wean itself off the U.S. market. 

WPR: What is the nature of Mexico and China’s political and trade relations, and how have they changed in recent years? What impact has the Trump presidency had?

Carin Zissis: Looking back at the recent history of China-Mexico ties, the two countries have been rivals—particularly when it comes to trade. In 2001, when China sought the unanimous vote to gain accession to the World Trade Organization, or WTO, Mexico was Beijing’s last obstacle. In September of that year, China and Mexico worked out a bilateral deal that paved the way for Beijing to win its WTO membership, but also allowed Mexico a six-year grace period, later extended to 2011, to maintain countervailing duties on hundreds of Chinese products. 

A major reason for Mexico’s hesitation about China joining the WTO came down to the fact that the two countries compete as exporters. There is evidence that Mexican concerns were well-founded. In the 16 years since it joined the WTO, China has replaced Mexico as America’s second-largest trading partner. At the same time, Mexico developed a gaping trade deficitwith China to the tune of about $65 billion in 2015, while receiving a fraction of its total foreign direct investment from the Asian powerhouse.

But now they share something in common: Both are being attacked by the Trump administration over trade deficits and as part of Donald Trump’s “America First” policy. Still, well before Trump began repeatedly hurling abuse at the southern neighbor, Mexico was already showing interest in boosting ties with China....

Read the full text of the article at World Politics Review or via AS/COA Online

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World Politics Review | Fear of the Unknown as Mexico Awaits the Trump Era

Summary: On the morning after the U.S. election, the front pages of Mexican dailies responded to Donald Trump’s win with shock, and those fears aren’t unfounded. While it’s uncertain whether Trump will make good on his campaign promises, Mexico—and the U.S.—should brace themselves for the economic fallout.

MEXICO CITY — On the morning after the U.S. election, the front pages of Mexican dailies responded to Donald Trump’s win with shock. Given that Mexico found itself in Trump’s crosshairs throughout the race, Mexicans’ fears aren’t unfounded. But the U.S. president-elect might not be able to make good on every threat he made on the campaign trail. 

Consider the nearly 2,000-mile U.S.-Mexico border. Trump will face plenty of challenges to building the infamous wall that was a centerpiece of his candidacy. First off, physical obstacles abound, including the Algodones Sand Dunes in southern California; the Coronado National Forest in Arizona and New Mexico, home to 9,000-foot mountains; and, not least, the Rio Grande. Next are the legal barriers: Roughly two-thirds of the border area is private- or state-owned. Then there’s the price tag, which could be as high as $25 billion, and which the Mexican government says it won’t cover, despite Trump’s campaign assertions that he would go so far as to block remittances unless it does. That’s no small threat. Mexican immigrants sent over $20 billion home in the first nine months of 2016 alone. 

Read the full text of the article at World Politics Review or via AS/COA Online

World Politics Review | The Trump Effect: Why Mexico's Image Problem Spells Trouble for the U.S.

Summary: Republican presidential nominee Donald Trump has derided Mexico and Mexicans since his campaign began. His proposals are unfeasible and ignore the reality of robust and vital bilateral ties. For its part, Mexico has challenges that undermine its international image, but that's not the whole picture. 

During a June 30 campaign stop in New Hampshire, Republican presidential nominee Donald Trump pointed to a plane flying overhead and quipped that it could be a Mexican aircraft “getting ready to attack.”

It’s not a small thing for the potential future U.S. president to casually suggest that neighboring Mexico is planning to launch an assault, given the close historical, security and commercial ties between the two countries. A third of U.S. territory used to belong to Mexico. Americans travel to Mexico more than any other foreign destination, and over twice as much as they do to Canada. Bilateral trade has hit more than $1.4 billion a day. The 2,000-mile border between the two is the world’s busiest, with 350 million people crossing—legally—each year. Even with that volume of people, there has not been one documented case of a terrorist getting into the United States from Mexico...

Read the full text of the essay at World Politics Review or via AS/COA Online