Nearly 5 Million U.S. Jobs Depend on Trade With Mexico

12/9/12 The Atlantic 

growing-together-employment-sectionWhen President-elect Trump talks about scrapping the North American Free Trade Agreement (NAFTA), his argument rests on the notion that the agreement is one of the main culprits of job loss in the states. American companies, critics argue, have used NAFTA to send manufacturing jobs to Mexico—where labor is cheaper—leaving domestic workers unemployed. It’s true that companies have been enticed to send jobs abroad—but often this argument misses the fact that as some American firms moved work across the border, there’s also been reciprocity. Now, millions of American jobs are dependent on trade with Mexico, and Mexican corporations have created thousands of jobs in the U.S. New research from the Mexico Institute at the Wilson Center, a nonpartisan think tank based in Washington, D.C., found that trade with Mexico creates approximately 4.9 million jobs in the United States.

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Mexico and U.S. executives to share data to make case for free trade

12/8/2016 Reuters 

HE_Enrique_Peña_Nieto,_President_of_Mexico_(9085212846)Mexican and U.S. business leaders will share information on cross-border economic integration as they seek to build a case for free trade under the government of President-elect Donald Trump, a top industry group said on Wednesday.

Trump has threatened to renegotiate or withdraw from the North American Free Trade Agreement (NAFTA), prompting concern in Mexico about the future of the economy, trade and foreign investment.

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Mexico Overtakes Canada as No. 2 U.S. Exporter Ahead of Trump

6/12/16 Bloomberg

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Mexico is overtaking Canada as the No. 2 exporter of goods to the U.S. this year, in a sign of how economic ties have deepened between the two countries even as the relationship is being questioned by President-elect Donald Trump.

Shipments from Mexico totaled $245 billion in the first 10 months of the year, according to Commerce Department figures released Tuesday, ahead of Canada’s $230 billion. If the trend continues, it would be the first time ever the U.S. bought more imports from its neighbor to the south. The two countries ended 2015 tied in exports to the U.S.

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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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Mexico’s Options in a Trump Trade War

11/20/16 The Wall Street Journal

mexico cityIf the sharp selloff of the Mexican peso after the Nov. 8 election of Donald Trump were set to music it might sound like a funeral dirge, the dearly departed being the North American Free Trade Agreement (Nafta). The peso has fallen to an all-time low of more than 20 to the dollar, and on Thursday the Bank of Mexico raised its benchmark interest rate to stem the bleeding.

Mexico investors are worried that Mr. Trump might actually believe—as he argued in his campaign—that U.S. productivity growth and job creation depend on renegotiating Nafta to discourage U.S. investments south of the border. But Mexico won’t easily yield to a new deal that limits its access to U.S. markets in order to make it less attractive as a destination for capital.

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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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