Mexico Economy Minister Ildefonso Guajardo Now Fears NAFTA Collapse…

Mexico’s Economy Minister Ildefonso Guajardo has a different perspective today than prior to the beginning of NAFTA renegotiation.

Before NAFTA round #1 began Minister Guajardo stated angrily if the U.S. did not concede to the demands of Mexico his government would flood the U.S. with drugs and illegal aliens.

However, in the face of actually seeing NAFTA discussions possibly leading to collapse, Mr. Guajardo has a change in tone.  The minister is looking at alternatives, bi-lateral trade deal options are analyzed, and the reality of the Mexican economic position is settling in.

What happens next? Mexican officials are dispatched to Washington DC to enlist the lobbying efforts of K-Street and their allies in the U.S. CoC.  “Halp“:

MEXICO CITY (Reuters) – Mexico sees a serious risk the United States will withdraw from NAFTA and is preparing a plan for that eventuality, Economy Minister Ildefonso Guajardo said on Tuesday, calling talks to renegotiate the deal a “roller coaster.”

[…]  “This is not going to be easy,” Guajardo said at a meeting with senators in Mexico City. “The start of the talks is like a roller coaster.”

The need for a back-up plan in case Trump shreds the deal underpinning a trillion dollars in annual trade in North America has been a long-standing position of Guajardo, who travels to Washington on Tuesday with foreign minister Luis Videgaray to meet senior White House and trade officials.

“We are also analyzing a scenario with no NAFTA,” Guajardo said.

In an interview published earlier on Tuesday in Mexican business daily El Economista, Guajardo said “there is a risk, and it’s high” that the Trump administration abandons NAFTA.

[…]  Overlapping with the NAFTA talks, Mexico will participate in separate trade meetings with Australia and New Zealand in Peru, and President Enrique Pena Nieto travels to China this weekend.

Still, attempts to diversify trade will not be easy. Some 80 percent of all Mexican exports go to the United States, and economies such as Brazil and China often compete with Mexico.  (read more)

Mexico is quickly realizing something that Canada is also learning in discussions with the EU and Asia.  The U.S. Market is the world’s most valuable customer in the trade equation. With that value comes incredible leverage.

Mexico can go to other nations as a “Plan B” to shore up trade deals, but those same nations will also be engaging in bilateral agreements with the U.S. and trying to keep a strong relationship with the best customer, the American Market.

If NAFTA ends, the U.S. simply switches to engage in disconnected bilateral trade with Mexico and independent bilateral trade with Canada.  There are many nations who would love to replace Mexico and Canada as U.S. suppliers, and be a provider for the goods and services we might import.

Mexico might turn to Brazil as a trade partner, but Brazil doesn’t want to put their relationship with the U.S. at risk.

As a customer, the scope and scale of the U.S. economic market is the ultimate leverage. Mexico is beginning to recognize what they have taken for granted.

Sucks to be you Ildefonso !

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This entry was posted in ASEAN, Canada, Donald Trump, Legislation, media bias, NAFTA, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

210 Responses to Mexico Economy Minister Ildefonso Guajardo Now Fears NAFTA Collapse…

  1. thedoc00 says:

    Before Mexico starts trying to play the China card they need to look at Africa and Venezuela as well as other client states of China. The Chinese give/pay zero and take payment in the form of all their clients’ resources. They leave in their wake even more poverty, unemployment, disruption, unrest and a broken government (manned by rich politicians). Oh, don’t forget the Chinese military base they demand you allow to exist on the choicest location of your land at no cost.

    Like

    • zaq123 says:

      The Chinese are like the aliens in Independence Day. Take everything, destroy everything and move on to the next place.

      Like

    • Esperanza says:

      I worked with a road building engineer who specialised in Africa. He hated the Chinese with a passion, according to him, when they built something, they not only destroyed the villages in the way, they killed the people in them. And all the workers were Chinese, so no locals ( his company both included black engineers as partners and worked with local onside professionals) Not sure if it was true or not.

      One thing I think the Chinese have forgotten, copying the Western industrial revolution, our markets were first and foremost us. There is a great generosity in the US model in my opinion. The great US industrial powerhouse started to give a good life to Americans and all they ever want, in my experience is that everyone else has the access to the same. The solution for China is to start selling to the Chinese. Madison Ave is much maligned but it was the spearhead of massive, democratised quality of life.

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  2. mypitztop says:

    The first thing I must say is: STOP! Don’t forgive this Latino’s initial behavior of lashing out like an adolescent – an undisciplined adolescent – (re: his comments of unleashing drugs and illegals)!

    Since my retirement of 5 years, I have lived part-time in Central America. What you witnessed by this socialistic runt’s outburst is what I witness everyday: who the hell do you think invented and produces nothing but MACHISIMO?

    Machismo is PRIZED here: outbursts of small-fry anger. Machisimo for boys/men and machisima for girls/women.

    And Hollywood fills our irrational brains with, “¡ooooooh, encanta! how enchanting!”

    What is Latin America known for? Besides some fun, soothing music, great fresh fruits, and an over use of cleavage (and that’s just on the men! 🙂 What have they given the world?

    Architecture? The ONLY COUNTRY in the southern hemisphere with any planning or engineering is Argentina, and that is because the Germans brought it to them post WWII.

    Medicine? SOCIALIZED MEDICINE? PLEASE, don’t allow the US leftists to ruin the best medical system in the world! A visit to socialized medicine here in Central America is like a day in the DMV!

    Education? Latinos have dependency in their blood, a strong dislike for personal initiative, and a total lack of creativity and individualism. They do not want the future. They do not want achievement or solutions to their problems. I once witnessed two drivers arguing post a car accident. There were numerous witnesses, but no one would offer their view. The drivers argued while others just stood on the street corner like this was a movie. Finally, they stopped blabbing – which Latinos are known for: ask them the time of day, and they will use 5,000 words to tell you! Then, they smiled and said, “MUY AMABLE!” (which translated, means ‘very nice, very friendly!) Is there a communist reading this, Bernie Sanders, perhaps? Who will say, “Well, how wonderful!” No solutions. No agreements. Who will pay for their wrecked cars? Seguro de Auto? Ja-Ja-Ja-Ja!!!

    And this guy is el Ministro de Finanzas? O Dios, imagine señor Ross trying to have a rational conversation with these children!

    Oye, Soros, Obama, Hillary, Hollywood, NSA y el Departamento de Educación: “Muy Amable!”

    Señor Bill, hay muchas señoritas aquí mostrando la escisión del pecho, usted puede conseguir en un montón de problemas!

    And for years we have allowed them to rob us blind, prop up their fake cartel governments of Vicente Fox, pretty boy Enrique Peña Nieto and pretend Mexico does NOT HAVE the most killings per year except for Syria.

    Machisimo! And it does not mean ‘male chauvinist’! It has nothing to do with the sexes! Another hollywood/US education system lie! It has to do with both men and women acting like babies! Undisciplined, irrational, little children!

    ¡Chau!

    Liked by 1 person

  3. zaq123 says:

    The negotiations with Mexico could be done in 5 minutes, if the Trump Admin really wanted to play hardball.

    First, they would tell Guajardo, that this threat to flood the country with illegal immigrants and drugs, will be met with the US military being deployed on the border. The ‘sealed’ US, Southern border.

    Second, starting immediately, any monies brought to Western Union, or any other financial transfer entity, the money will be taxed at 40%. This will, pretty much, wipe out remittance back to Mexico, which accounts for more of their GDP than their oil production.

    Third, require that the drivers and vehicles, coming from Mexico to deliver goods, meet the same standards the American drivers and vehicles have to meet. Additionally, more thorough inspections will be made in the interest of homeland security.

    Fourth, no more birthright citizenship(which we shouldn’t be allowing anyway, but that’s another argument for another day), no more chain migration, strict enforcement of student and work visas, EVerify on steroids.

    Throw some of that on the table, along with some other stuff I’m sure I forgot, and they’ll sign anything the President wants.

    Liked by 1 person

  4. SSI01 says:

    Glad to see Sparky simmered down, stopped talking with “them,” and started to apparently act like an adult instead of a punk kid.

    Like

  5. Pingback: NAFTA Negotiations Or Mexican Standoff? – IOTW Report

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