Messing With Mexico Is A Mistake

2/9/2017 Forbes

mexican-flag1For every supply chain executive adding jobs in Mexico, 2.4 are also creating jobs in the United States. In fact, among 129 managers who said Mexico was one of their top three countries for planned hiring over the next three years, 81 said their top overall country for new job creation was the US – Mexico was second or third. As for those who are actually shifting work southward, this group is less than 5% of our total sample of 1,179 supply chain executives worldwide.

Mexico is the second largest exporter to the US. It’s also the second largest importer from the US. Michigan, which shares a border with Canada, is the third-ranked state in terms of exports to Mexico. This is mostly auto parts bound for assembly into finished vehicles.

A huge portion of everything we produce and consume – from natural gas and food to cars and computers – makes its way across the border, often more than once. The North American supply chain ecosystem is so intertwined that simplistic efforts to force business to alter hiring plans will almost certainly end badly.

Costs will go up, supply availability will suffer and companies will respond with even faster moves to robotics and automation.

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Produce, Auto Parts, Electronics: How Mexico Tariff Could Cost Consumers

2/8/2017 CBS DWF

produceLAREDO The economic impact of President Trump’s executive order to build a U.S./Mexico border wall is already being felt in Laredo.

It’s the largest port of entry for imported goods from Mexico where every day some 12,000 trucks cross over.

“This is the most important bridge on the border. Forty percent of the traffic crosses through Laredo, and most of that traffic crosses through this particular bridge,” said President of Laredo’s Chamber of Commerce, Miguel Conchas.

He said that last year Laredo saw some $280 billion in goods cross the border.

“We see everything under the sun that comes through. Electronics, auto parts, and produce.”

And now that the Trump administration is considering a 5 to 20 percent tax increase on the goods to pay for the controversial border wall, many importers who deal in produce are left concerned how it will impact their business.

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Mexico, Central America to discuss migration under Trump: ambassador

2/8/2017 Reuters

6300375991_a362f0261a_nThe foreign ministers of Mexico, Honduras, El Salvador and Guatemala will meet in Mexico next week to discuss immigration policy responses to Donald Trump’s U.S. presidency, the Honduran ambassador to Mexico said on Wednesday.

Central American ministers want to open lines of communication with Mexico’s Foreign Minister Luis Videgaray to discuss problems with migration and the flow of Central Americans, Alden Rivera said in an interview.

“It’s a first point of contact … we don’t expect to have an answer,” Rivera said.

The meeting between Videgaray and the three Central Americans will take place in Mexico City, Rivera said.

Mexico’s foreign ministry said that there was no meeting officially in the calendar yet.

Rivera said his main concern was a change in U.S. immigration policy and how Mexico reacts to that, which would have an impact on Central America.

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Here’s a look at US trade with Mexico

2/7/2017 Bloomberg

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via Flickr – Michael Cannon

The state of US trade with Mexico is on the front page as policy makers attempt to stem the outflow of firms, jobs, and goods production from the United States. To put the issues in perspective, it is first helpful to have some facts on US trade in general and trade with Mexico in particular. By comparison with many countries, the US economy is still dominated by domestic production and consumption. In the euro area, for example, trade amounts to about 69% of GDP, and in the UK it is about 38%. In the US economy, by contrast, exports amounts to less than 16% of GDP, and imports are only about 12.5% as of yearend 2015.

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San Diego, Tijuana Mayors Extol Virtues of Cross-Border Ties

2/6/2017 New York Times

Pedestrian_border_crossing_sign_Tijuana_Mexico
By Toksave

SAN DIEGO — The mayors of the largest metropolitan area on the U.S.-Mexico border called Monday for stronger binational ties, striking a sharp contrast with U.S. President Donald Trump’s calls to build a wall and renegotiate the North American Free Trade Agreement.

San Diego’s Kevin Faulconer and Tijuana’s Juan Manuel Gastelum didn’t mention Trump or Mexican President Enrique Pena Nieto by name at a joint news conference, but their concern about growing tension between the two countries and its potential economic impact was evident in their remarks.

“We can’t control what happens outside our cities, but I know this: We will continue our story of collaboration, our story of friendship, and we will continue working together — together — for the prosperity of our people,” Faulconer said.

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WWF Calls for Fishing Ban to Save Last of Vaquita Porpoises

2/6/2017 New York Times

Vaquita4_Olson_NOAAMEXICO CITY — The World Wildlife Fund on Monday called for a complete ban on fishing in the habitat of the vaquita porpoise, noting an international committee of experts has determined that fewer than 30 of the critically endangered mammals probably remain in the upper Gulf of California, the only place they live.

Experts and the Mexican government previously announced a plan to catch the few remaining vaquitas and enclose them in pens for protection and possible breeding.

But the World Wildlife Fund argued that is not the answer for the tiny porpoise, saying in a statement that “the only way to save the vaquita from extinction is for the Mexican government to immediately and indefinitely ban all fisheries within its habitat.”

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Moody’s warns growing debt weighs on Mexico’s rating

2/6/2017 Reuters

credit cards and coinsMoody’s rating agency, which has put Mexico on watch for a credit downgrade, on Monday said the Mexican government’s debt rose more than expected last year and weak growth could further pressure policymakers this year.

“Worse-than-expected fiscal performance is credit negative for Mexico and weighs on its creditworthiness amid muted economic activity and rising tensions with the United States, its main trade partner, following the U.S. presidential election,” Moody’s Mexico analyst Jaime Reusche wrote in a research note.

The report cited data from the country’s Ministry of Finance, showing the federal government deficit increasing to 2.9 percent of GDP in 2016, up from 2.8 percent in 2015.

The ratings service had expected fiscal consolidation and a deficit reduction to 2.5 percent of GDP for 2016, it said.

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