Mexicans Launch Boycotts of US Companies in Fury at Donald Trump

Mexicans Launch Boycotts of US Companies in Fury at Donald Trump

Mexicans Launch Boycotts of US Companies in Fury at Donald Trump

Making good on his campaign promises, Trump earlier this week announced his decision to renegotiate the North American Free Trade Agreement (NAFTA) that the US signed with Mexico and Canada in 1994.

If that's debatable, so is the prospect that, managed badly, this could produce the worst outcome on the trade side since the Smoot-Hawley Tariff helped turn a recession into a depression in 1930. Critics say the deal sent a surge of USA manufacturing jobs to Mexico, where companies took advantage of lower wages.

"Also up for debate is the future of the U.S.' role in the world", the email reads.

Whitman said private, high-level meetings are taking place as the Canadians attempt to convince the Trump administration of the dangers of disrupting these highly integrated markets. US dairy exports to Mexico now account for a quarter of total dairy exports and accounted for 3.4% of all USA milk production in 2015, which equated to 30,000 American jobs. The American withdrawal from the TPP signals that the ambitious economic counterpart to the so-called "Pivot to Asia" is now dead and will probably be replaced with a series of bilateral trade deals, if at all.

"The hour of justice for the American worker has arrived", Trump declared. Having thus disarmed Americans at the bargaining table, NAFTA is effectively complicit in the wage stagnation and worsening income inequality evident over the last couple of decades. During the campaign, Trump discussed a wall tax on the $25 billion in remittances sent home by Mexican migrants working in the United States every year.

Prime Minister Theresa May speaks during Prime Minister's Questions in the House of Commons London. PRESS ASSOCIATION
Theresa May refused to rule out that the NHS would be part of a trade deal

White House spokesman Sean Spicer said Thursday that Donald Trump will ask Congress to impose a 20 percent tariff on goods imported from Mexico as a way of paying for his border wall.

These days China, however, offers a different proposition, given its growing rivalry with the US not just as a global economic powerhouse, but also in geo-politics, defense and as a global soft power. Thus we ended up with a nationwide shortage on limes and some astronomical prices on Mexican limes in the spring of 2014, when several factors including weather and disease ravaged Mexico's crop. Canadian PM Trudeau recently revealed that "the (US) administration has made it very clear...that they are not overly preoccupied with Canada in terms of much of their protectionism and much of the rhetoric they've put out". Most directly, he said NAFTA has greatly facilitated the ability of American trucking companies to move freight across the border into Mexico and Canada, significantly increasing the market for those services.

Last summer, the U.S. Department of Transportation reported that cross-border trade generated by NAFTA was worth $89 billion to the trucking industry. "And while China has plenty of weapons to fight a trade war, those measures are unlikely to completely offset a sudden shock to its exports".

"The key issue is the supply chain and how integrated it now is".

Building on the same agenda that is endangering NAFTA, Trump gathered the CEOs of several top USA companies at the White House Monday and Tuesday to tell them they must move their overseas manufacturing operations or face a "substantial border tax". On top of that, the cost of USA labor will probably rise given the lack of slack in the US labor market. He says he is going to get those jobs "back". "According to University of California Berkeley professor Brad DeLong's calculations, 'A sector of the economy that provided three out of 10 nonfarm jobs at the start of the 1950s and one in four nonfarm jobs at the start of the 1970s now provides fewer than one in 11 nonfarm jobs today". That's why a number of US manufacturers, including Ford Motor Co. The network notes that China is already pushing its own trade deal known as the Regional Comprehensive Economic Partnership (RCEP). On balance, there is too little in it to protect workers, towns, and cities from the negative fallout that was perfectly predictable. The American Soybean Association says, "Trade is something soybean farmers take very seriously".

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