Export Or Import Directions

U.S.-Mexico trade talks leave one top sugar company with sour taste

10/6/16 Reuters 

As the U.S. government reworks a supply deal with Mexico, a top player in one of the world’s largest sugar markets is crying foul and claims competitors are using the trade talks to deny it access to cheap Mexican sugar imports.

Mexico is the top supplier to the U.S. sugar industry and negotiators from both countries are in talks to change a 2014 trade pact that prescribes the balance of raw and refined sugar that heads north to ensure U.S. refiners have what they need.

But CSC Sugar LLC, which produces liquid sugar to sweeten ice cream and make frosted coatings, said the proposals would exclude it and others from the export quota allotted to Mexico.

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Mexico’s central bank says U.S. to include TIIE 28 swaps in contracts

10/03/16 Reuters

Mexico’s central bank said on Monday that the U.S. Commodity Futures Trading Commission has decided to include the bank’s interbank equilibrium interest rate of 28 days denominated in Mexican pesos in its list of swap contracts.

In 2015, the central bank determined that the 28-day TIIE swaps, the main local derivative, would be negotiated only in markets and platforms recognized by local financial authorities, part of a change in its operating rules.

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US Treasury Head Touts Trade, Security in Mexico Visit

9/29/16 ABC News

untitledU.S. Treasury Secretary Jacob Lew made a strong pitch for the Trans-Pacific Partnership trade pact during a visit to Mexico on Thursday. Lew strongly defended globalization, but acknowledged that “some industries, towns, and workers” in both the U.S. and Mexico “are feeling the stress of this change.”

Mexico was seen as a beneficiary of the 1994 North American Free Trade Agreement, and the pact has become an issue in this year’s U.S. presidential campaign. Lew acknowledged a lot of people still have to be won over, saying, “We must win the argument, one that is supported by the facts, that fair trade will grow both of our economies.”

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Mexico is not just “taking jobs” from the US. It’s also adding them.

9/28/2016 Quartz

Republican presidential candidate Donald Trump repeatedly lamented the loss of jobs to Mexico during his facedown with Democratic nominee Hillary Clinton on Sept. 26.

Putting aside the fact that some of his claims were untrue—the social media folks at Ford had to jump in on Twitter mid-debate to deny Trump’s claim that the car company is leaving the US—his views offer an extremely one-sided view of the relationship Mexico and the US have built under the North American Free Trade Agreement, particularly when it comes to jobs.

He didn’t mention, for example, that as a partner under NAFTA, Mexico is also supporting employment in the US.

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This article mentions the Mexico Institute’s new project Growing Together: Economic Ties between the United States and Mexico. Check out the project.

Walmart Is Being Sued for Allegedly Bribing the Mexican Government

09/22/16 Fortune

WalmartWalmart must face a class-action lawsuit accusing the world’s largest retailer of defrauding shareholders by concealing suspected bribery to help it expand faster in Mexico, a U.S. judge said.

In a decision on Tuesday, U.S. District Judge Susan Hickey in Fayetteville, Arkansas rejected Walmart’s contention that a Michigan pension fund had no standing to lead the case because it had not suffered losses on the retailer’s stock.

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Mexico’s America Movil eyes acquisition of Brazilian rival Oi: Valor

09/21/16 Reuters

America Movil SAB (AMXL.MX) is interested in acquiring some or all of the operations run by struggling Brazilian rival Oi SA (OIBR3.SA), the chief executive of the Mexican telecom giant said in a newspaper interview published on Wednesday.

Brazilian paper Valor Economico reported that Daniel Hajj, CEO of Mexican billionaire Carlos Slim’s telecom empire, said he was eyeing an acquisition of Oi operations whether or not the company is split up in the midst of an in-court restructuring.

“We are open to looking at anything,” Hajj said in the Valor report. “I am very interested in participating in the (market)consolidation in Brazil, but I don’t know how it will happen.”

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G.M. Job Shift From Mexico Tests a Trump Premise

09/20/16 The New York Times

5469513101_b0b7e8478b_o.pngIn the realm of international trade, it is a truism seemingly as consistent as gravity: Jobs and investment flow from north to south, while manufactured goods travel the other way around. Factories in the United States and Canada shutter as work shifts to Mexico and Central America, where human hands do it more cheaply.

So the established order of trade was by all appearances turned upside down on Tuesday, as General Motors agreed to cease manufacturing an automobile engine at a factory in Mexico while moving jobs to a plant in Canada.

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