Giant Aluminum Stockpile Was Shipped From Mexico to Vietnam

Wall Street Journal 12/1/2016
sea tradeVUNG TAU, Vietnam—One of the world’s largest aluminum stockpiles, which until a few months ago was stored under hay and plastic tarp in a Mexican desert, has been moved to a remote port here in southern Vietnam.

Starting early this year, 500,000 metric tons of aluminum has been trucked out of the Mexican city of San José Iturbide and shipped to Vietnam, according to shipping records and people familiar with the matter. Much of it now sits under black tarps, guarded by baton-wielding men on motorcycles, at a factory and waterfront complex in this South China Sea port about a two-hour drive south of Ho Chi Minh City.

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Can Oil Help Mexico Withstand Trump’s Attack on Trade? It’s Hard to See How

The New York Times 11/27/16

energy - oil pumpsCIUDAD DEL CARMEN, Mexico — The town that oil built is emptying out. “For Sale” signs are plastered on concrete-block houses and sun-bleached bungalows alike. The idled oil workers who used to cluster in the main square, hoping to pick up odd jobs, have moved on. Here in Ciudad del Carmen, on the gulf coast of Mexico, even the ironclad union positions are slipping away. Some roughnecks on the offshore rigs of the national oil company, Pemex, have not worked in months, and their voices are filled with anxiety. “What do you think is going to happen?” some ask.

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A Victim of Trump (and Fundamentals), the Peso Falls

11/14/2016 Forbes.com, Mexico Institute Blog

By Viridiana Rios, Global Fellow, Mexico Institute

pesoI write today as a middle class Mexican whose savings lost 10 percent of their value when American voters elected a leader who pledged to renegotiate NAFTA and tax us to pay for a wall. As a result of the election and other factors, the Mexican peso has overtaken the Argentine peso and the South African Rand to become the emerging markets 2016 worst performer.

The Mexican Peso was a barometer for the presidential campaign. It lost 10 percent of its value when Clinton lost, 1.9 percent in the week after the FBI reignited Clinton’s email controversy, and hit its historical low in the days following the election as speculation turned to the potential impact of Trump’s first months in office. The peso spiked 1.3 percent in less than an hour during the first presidential debate, and when Trump’s lewd conversation about women broke, it gained 2.2 percent.

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3 ways Trump can slap tariffs on China and Mexico

11/14/16 CNN Money 

pesoPresident-elect Donald Trump has threatened to slap big tariffs on China and Mexico to help bring jobs back to America.

At first glance, it may seem hard to do without backing from Congress. But actually, Trump doesn’t even need Congress to approve it.

True, the Constitution gives Congress the right to impose tariffs on other nations. However, several complicated laws have been passed in the last 100 years that delegate that power from Congress to the president.

Trump has several options — each open to interpretation — but here are three key ways he can go after China and Mexico.

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Trump Trade Stance With Mexico Could Press Gas Prices

11/14/16 The Wall Street Journal 

energy - gas pumpDonald Trump’s presidency is widely viewed as a boon for the U.S. energy industry, but some of his planned policies could pose problems for the natural-gas business.

Mr. Trump has won plaudits from energy executives for saying he would peel back government regulations on oil companies, oppose global efforts to curb climate change and review a recent agreement that lifted sanctions on Iran, a major oil exporter.

Yet some of his other proposals could be detrimental to natural gas. He has pledged to tear up trade pacts and wall off Mexico, which could hurt the flow of U.S. natural gas to its southern neighbor. Mexico has become an increasingly important outlet for the fuel that has helped buoy domestic prices amid a glut of shale gas, analysts say.

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NEW PUBLICATION | Growing Together: How Trade with Mexico Impacts Employment in the United States

growing-together-employment-sectionBy Christopher Wilson

Read the essay

The United States and Mexico trade over a half-trillion dollars in goods and services each year, which amounts to more than a million dollars in bilateral commerce every minute.  With such a large volume of trade, it is not hard to believe that the number of jobs that depend on the bilateral relationship is similarly impressive. New research by the Mexico Institute shows precisely that: nearly five million U.S. jobs depend on trade with Mexico.

The study shows that if trade between the United States and Mexico were halted, 4.9 million Americans from across the country would be out of work.

This essay analyzes the employment impact of bilateral trade on the U.S. economy. Read the essay here.

Key Findings

  • Nearly five million U.S. jobs depend on trade with Mexico… Our model shows that if trade between the United States and Mexico were halted, 4.9 million Americans would be out of work.
  • Many times, it is the availability of cost-efficient inputs that allows U.S. companies to stay competitive enough to fend off competitors from outside the region and to grow exports in the face of fierce global competition. In this way, not just exports but also imports from Mexico help support jobs in U.S. industry.
  • The auto industry, which is probably the single most integrated regional industry, is a perfect example of the benefits of trade integration. Without the availability of nearby Mexican plants to do the final assembly of light vehicles, it is quite possible that the vast U.S. parts producing network for these vehicles would migrate to someplace outside of the continent.
  • Misperception and scapegoating has certainly played a role in creating the current negative political environment around trade…but so has the very real failure of U.S. policymakers to adequately address the challenges facing middle-class Americans.

This essay is part of our project Growing Together: Economic Ties between the United States and Mexico, which explores the bilateral relationship in detail to understand its nature and its impact on the United States. Throughout the fall of 2016, the Mexico Institute will release the findings of our research on our website and social media, using the hashtag #USMXEcon.

Read the essay

Nissan Mexico Announces End to Popular Tsuru Model

10/26/16 The New York Times

Nissan_Tsuru_Taxi.jpgMEXICO CITY — Automaker Nissan’s Mexico unit announced Wednesday that it will cease production of the long-running Tsuru model that has been sold in the country since the mid-1980s.

The model is widely prized by taxi drivers in Mexico because of its low cost and ruggedness, but has also been slammed by critics for its lack of safety equipment and poor crash test results.

Nissan said it will end production in May, including a special limited-edition “commemorative” version of a 1,000 models. Nissan did not give a reason for the decision.

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