The View from Mexico | Border Adjustment Tax: Economic Impact & WTO Consistency

1/18/2017 Forbes.com, Mexico Institute Blog

By Luis de la Calle

Donald Trump has been elected U.S. President as disrupter in chief; somebody that can get things done and change the status quo.

One of the centerpieces of his program appears to be a complete revamp of the U.S. tax system. “I understand the tax laws better than almost anyone. And that is why I am one that can truly fix them,” he said several times in debates and rallies. The idea is to end up with a system that favors investment on infrastructure and capital goods.

His background as a developer and his penchant for not paying taxes have led him to believe that the best way to promote growth and generate government revenue is taxing consumption rather than investment. Furthermore, his infrastructure ambitions need significant private investment funds that might only come with a favorable regime. The idea is to prompt firms and banks holding more than a trillion dollars in cash to put it to work.

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With Trump Victory, Mexico’s Worst Fears are Realized

11/9/2016 The Washington Post

In America’s modern history, few U.S. presidents have come to power as openly hostile to their southern neighbor as Donald Trump. His opening campaign salvos — describing Mexican immigrants as criminals or rapists — seemed almost tame by the time he clinched victory, after so many threats to cut off jobs going to Mexico, deport millions of unauthorized immigrants and build a wall on the border.

His victory stunned, saddened and worried Mexicans, forcing the country’s highest government officials Wednesday morning to call for calm and pledge to work with the United States. The wave of national anxiety sent financial markets here into turmoil as a new, uncertain era in relations with the United States began.

[…] “I think there will be some tinkering with the U.S. approach to international trade, but I don’t see wholesale reversal of U.S. trade policies. There’s too much at stake here, and any change on that scale would take years and years,” said Duncan Wood, director of the Mexico Institute at the Woodrow Wilson International Center for Scholars in Washington. “I think we’re looking at the beginnings of a conversation about where we want to be as a country in our international trade relationships. So we’re moving away from a model of free trade and back to a paradigm of managed trade.” […]

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Time is right for regional water planning for border

08/29/2016 Albuquerque Journal

Water supplies are a key factor as states like New Mexico and Texas struggle with drought and nearly empty reservoirs and at the same time try to attract new business and industry.

It’s not that the Southwest doesn’t have water. It does, in large caches underground. But much of that water is brackish, or salty. It would take tens of millions in investments to build desalination plants to make it potable.

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Mexico & the United States: Let’s Build Prosperity & Security

By Earl Anthony Wayne and Sergio M. Alcocer

President Obama will receive Mexico’s President Enrique Peña Nieto July 22 in Washington.  This is a critical opportunity to highlight the importance of U.S.-Mexico ties, to underscore the substantial progress in cooperation, and to accentuate how the campaign rhetoric in the United States is out of tune with the reality of relations.  With the U.S. election approaching, it is crucial to take steps to preserve the unprecedented U.S.-Mexico collaboration that exists today.

U.S.-Mexico relations touch the daily lives of more citizens of both countries than do ties with any other country in the world.  Over 30 million U.S. citizens of Mexican heritage, our interconnected economies, the 1,990-mile border and our shared environment link us uniquely.  The two governments have established a comprehensive network of mechanisms that put bilateral relations in the best place they have been in memory.  Officials work together to take advantage of mutual opportunities and to solve shared problems across a wide spectrum of issues, with input from “stakeholders” in the relationship.

There is still a lot of serious work to do to address the problems out there and to take advantage of the opportunities of the region.   Each government has experienced professional ambassadors and teams in place to help guide the work during the U.S. leadership transition.  But, simplistic explanations of the problems or solutions distract us from the good work underway and the hard work still needed to deal with the serious challenges ahead.  As the United States prepares for a presidential transition, the two countries should solidify the mechanisms and engagements that are doing the hard, policy and technical work of enhancing both of our nations’ economic and national security.  These include the High-Level Economic Dialogue (HLED), the 21st Century Border process, the bilateral Security Coordination Group, and the Bilateral Forum on Higher Education, Innovation and Research (FOBESSII).  The U.S.-Mexico relationship is too important for both countries not to continue this work.

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Life looking across the US-Mexico border in El Paso: ‘You are glad you are here’

06/28/16 The Guardian 

Efren Macias, 70, lives in a one-room rented apartment, only 1,000ft from a 15ft-high fence splitting El Paso from Mexico. His apartment is immaculately kept, the walls decorated with religious icons and pictures of his family, many of whose members live in Mexico.

Efren and his wife do not have a lot of money. They make about $1,000 a month from a small pension he receives and from her occasional home-care work. Yet they are content. “I am happy. I have a roof. I have food. I am safe. I see my family. I am not sure what more you need.”

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California sees surge in Chinese illegally crossing border from Mexico

06/07/2016 Los Angeles Times

The number of Chinese immigrants illegally crossing the Mexican border into California has skyrocketed in recent years, the result of a lucrative smuggling industry, mass migration from China and a diversifying pool of migrants settling in the United States.

Between October and May, the first eight months of the fiscal year, Border Patrol agents in the San Diego sector apprehended an estimated 663 Chinese nationals, compared with 48 in the entire previous fiscal year and eight in the year before that, according to data provided by U.S. Customs and Border Protection.

Before then, “we just weren’t getting [Chinese nationals],” said Wendi Lee, a spokeswoman for the Border Patrol.

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The GOP’s Mexico Derangement

6/6/2016 The Wall Street Journal

A dozen Mexican states held elections on Sunday, and—ho-hum—the center-right National Action Party, or PAN, appears to have won seven of the races. The Journal reports that voters in the world’s 15th-largest economy were turned off by the ruling party’s failure to cut debt and tackle crime, and by a boy-wonder president, Enrique Peña Nieto, whom they now regard as more boy than wonder.

I mention this to illustrate that Mexico is a functioning democracy whose voters tend to favor pro-business conservatives, not a North American version of Libya, exporting jihad and boat people to its neighbors. Somebody ought to explain this to Republican voters, whose brains, like pickles in brine, have marinated too long in anti-Mexican nonsense.

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