Mexico ready to quit NAFTA if US talks fail

I call BS on this from the Mexican Govt. They are utterly dependent on the export of their goods to the US. And US corps have grown used to the 3rd world labor pools that can be exploited for profit. I can't wait to see this party.

A red line has been drawn ahead of the negotiations with the Trump admin about NAFTA from Mexico.

www.yahoo.com...
Mexico drew red lines on Tuesday ahead of negotiations with US President Donald Trump's administration, warning it could quit the talks and a major trade pact if the discussions hit a wall.

IIdenfonso Guajardo said that Mexico would absolutely walk away from the table if the wall is in the deal.

"There are very clear red lines that must be drawn from the start," Economy Minister Ildefonso Guajardo told the Televisa network as he prepares to meet with US officials in Washington on Wednesday and Thursday.

Asked whether the Mexican delegation would walk away from the negotiating table if the wall and remittances are an issue, Guajardo said: "Absolutely."

80% of Mexico's exports go to the US, they are utterly dependent on the export econ. But Guajardo said they would exit NAFTA after 23 years.

Some 80 percent of Mexico's exports go to the United States, a clear indicator of the country's dependence on the US market for its economic wellbeing.

But Guajardo warned on Tuesday that Mexico was also willing to exit the 23-year-old agreement.

Not to mention that without mexican imports, we'd be in a tight spot too. It would take a decade at full speed for us to start up industry in this country to replace what we import now.

Which would be awesome, of course... but it has to be ramped up. You can't just flip a switch, we import almost everything.

a reply to: seasonal

Political posturing. The administration down there has to appease their people first and foremost. Looking weak in the eyes of their people will guarantee them an exit next election. Mexico knows whats at stake, the last thing they want is a trade war.

a reply to: seasonal

Perhaps all of the execs that visited the white house the past few days have some inside info. Thus the news of late proclaiming jobs coming back or not going to Mexico.

They better start measuring for that wall.

Get that checkbook out.

well this is the world trump wants when he says put america first, problem is what happens when other countries tell us to bleep off and kick all mcdonalds, and american corporations out of their country? the problem i see with america wanting to horde the profits is that it will create more poverty around the world along with more immigrants banging down our doors trying to get in here.

We could be at a full scale war with China and Walmart shelves would still be full stocked. What would that tell you?
Does Mexico have Walmarts? Maybe that should also clue you in.

a reply to: seasonal

Its hard to say what is really what and who is going to settle for what . Canada has much more to loose then Mexico and any reduction in trade will have some effects . Canada could loose and Mexico could win while Donald still ends up with a better bottom line .

This is a snip from a interesting piece but it does focus more on the Canada side of the NAFTA issue

I ran the year-to-date export numbers for several Canadian industries by selecting them semi-randomly, here is what I found. For auto parts exports the United States is the largest importer of Canadian products by far with over $11 billion compared to second place Mexico at $793 million. Next I selected broad woven fabrics export volumes, and found similar numbers. Year to date Canada has shipped $190 million dollars in finished textiles the US, while the next closest country (Mexico) received only $6.7 million. journal-neo.org...

a reply to: lordcomac

We need to fix that anyway. I'm beginning to think, rip off the band aid, suck up the losses, and go full on nationalistic.

80% of exports coming here is a powerful hand to have. Were I betting man, I'd say the deal will be struck out of view of the media quietly in the background and Trump will prevail.

a reply to: seasonal

IIdenfonso Guajardo said that Mexico would absolutely walk away from the table if the wall is in the deal.

That makes no sense at all.

They are two completely different things.

I don't see any reasons that discussions about a wall to protect against illegal immigration would have any place in discussions about a trade deal, unless Mexico thinks sending illegal immigrants to the U.S. is a chief export of their country.



I'm with the OP on this - I call BS...

Mexico drew red lines on Tuesday ahead of negotiations with US President Donald Trump's administration, warning it could quit the talks and a major trade pact if the discussions hit a wall.

You would think the Yahoo writers could be a little more specific ?

a reply to: the2ofusr1

Canada has much more to loose then Mexico and any reduction in trade will have some effects . Canada could loose and Mexico could win while Donald still ends up with a better bottom line .

Canada, at this stage of the game, looks like it will be ok.

A top economic advisor to Donald Trump says Canada shouldn’t worry about the pending renegotiation of the North American Free Trade Agreement.
Blackstone Group Chairman Stephen Schwarzman, who heads up the President’s Strategic and Policy Forum, told reporters in Calgary Monday that the United States takes an unusually positive view of Canada in terms of its trading relationship.
“I don’t think [Prime Minister Justin Trudeau] should be enormously worried,” Schwarzman said. “Canada is held in very high regard. We have balanced trade between the U.S. and Canada and that’s not the kind of situation where you should be worrying.”
Schwarzman added that the familiarity between the two countries built over the last 150 years means Canada is a stable, known element for the newly-minted administration.
“Canada is very well-positioned for any discussions with the United States,” he said. “Americans have enormous admiration for Canada, and the amount of commercial linkages, cultural linkages are such that actually some people aren’t aware it’s not part of the United States some days. “There’s a sense of enormous connection with Canada.”

Bruce A. Heyman ✔ @BruceAHeyman
.@POTUS @realDonaldTrump The Most Important foreign relationship we have is with Canada. Especially with trade. Millions of US jobs created!

Trump teams NAFTA message to Canada, Don't worry.

originally posted by: Naturallywired
We could be at a full scale war with China and Walmart shelves would still be full stocked. What would that tell you?
Does Mexico have Walmarts? Maybe that should also clue you in.

Over 2,300 locations in Mexico.
corporate.walmart.com...

a reply to: lordcomac

Let's do it.

originally posted by: Blaine91555
80% of exports coming here is a powerful hand to have. Were I betting man, I'd say the deal will be struck out of view of the media quietly in the background and Trump will prevail.

Of course Trump (i.e.the US) will prevail.

We're holding all the aces...and all of the royal flushes too for that matter.

To not prevail would require extraordinary efforts.

The only way to lose this one would be if we were to fold. I can't see Trump doing that in a million years.

Good call Blaine...

It's going to be fun to watch. The "crazy left wing zealots" will lose their collective minds as this is happening.

And why *has* the left gone nuts or brain dead lately?

It's an amazing sight to witness...truly.

This is laughable, Mexico is totally dependent on the U.S. economy. And you have to wonder, why is Mexico so eager to see all their citizens invade, excuse me, immigrate to the U.S.? As for Canada, they have nothing to worry about with the U.S., if NAFTA falls through, we would just negotiate a trade deal with them one on one, as it should be.

a reply to: lordcomac

I think it is high time we start to make our $125 a pair shoes here.

originally posted by: Puppylove
a reply to: lordcomac

We need to fix that anyway. I'm beginning to think, rip off the band aid, suck up the losses, and go full on nationalistic.

We do, but it can't be a band aid rip.

If we cut of imports like that, cost of products will skyrocket and while there will be an immediate alike in jobs and industry to follow, the benefits wouldn't be seen for at least six years- long after trump was kicked out and trade deals reinstated.
It has to be ramped up. Starting with terrifs is a good way to do it.

a reply to: whyamIhere

There would be some jobs for a year or 2 while the wall is being built, or are they just paying for it?