Sunday, April 2, 2017

Mexico Ready to Play the Corn Card in Trade Talks

In this article it speaks on the still high tensions between Mexico and the United States due to Trumps presidency. During and before Trumps presidency he made many remarks about cutting off ties with Mexico for he believes that they are one of the major sources of Americas problems. In the article it details how Mexico is trying to, in a way, "flex" on America by threatening to turn to places such a Brazil for business. It begins by talking about how Mexico is one of America's major export facets for things like corn. Specifically it states "From the hundreds of millions of tortillas consumed every year to the countless tons of corn-enriched feed that fattens livestock and poultry, corn is perhaps Mexico's most important agricultural commodity, one at the center of its life and culture.Now corn has taken on a new role — as a powerful lever for Mexican officials in the run-up to talks over nafta, the North American Free Trade Agreement ... Much of the corn that Mexico consumes comes from the United States, making it America’s top agricultural export to its southern neighbor." According to this, cutting off ties with Mexico would only hurt Americas economy, for America is not the only place that Mexico can do business with and get the corn that they need(as discussed in the article). The article then goes on to talk about america and mexico are extremely codependent of each other as a lot of money goes into their dealing. In the article it states "American corn shipments to Mexico totaled nearly $2.6 billion last year and are part of an elaborate agricultural trade relationship between the two nations that has helped to interlace their economies. But though the corn business is a tiny fraction of the overall $525 billion in annual trade between the two countries, it has gained outsize importance and become something of a symbol for the nations’ economic codependence." The article also goes on to give alternative arguments. Some people such as Vázquez Salido suggest that this could be good for the countries, mainly mexico, as it will make them a much more independent country. What do you guys think? Do you feel as though this could be a positive thing, as it could end up creating more jobs in Mexico(for internal production of certain crops) or that it will only serve as a detriment? Do you feel like this is the first of many instances in which Donald's mouth could possibly negatively impact the whole country's economy or that this will be a one time thing?  


Link - https://www.nytimes.com/2017/04/02/world/americas/mexico-corn-nafta-trade.html?rref=collection%2Fsectioncollection%2Fus&action=click&contentCollection=us&region=stream&module=stream_unit&version=latest&contentPlacement=5&pgtype=sectionfront&_r=0

8 comments:

  1. I believe that Donald Trump is not doing his duty as president by protecting everyone's interest as an entire nation. To start off Donald Trump can not just build a random wall that the government doesn't have the means to pay for. This raises the question of why our president is breaking off alliances with countries like Mexico that have been partners with us for years, but making new ones with a new country that has been a threat to us for many years and don't have the same ethics we have as a nation. Although this might help Mexico this is detrimental to Americans because we are losing on resources and there are less workers do to import closings. I believe that this nonsense will be over because the legislative branch has common sense, but who knows due to a great amount of party polarization.

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    1. Just to play devils advocate, one possible solution people losing jobs that trump proposed was to have people work to build the wall. Another one that I though of would be to put some people on a job focused towards making our previous imports something that we produce ourselves. Regardless, I still feel like things would have been much better off if Trump had just kept his mouth closed

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  2. i think that Donald Trump has a plan because he is a business man. It is impossible to think that someone who is so rich and well known in the world for his hotels and other deals can break/ hurt the economy. I am not saying i support him i am just trying to think outside of what these news sites say because they dont know what goes on in the white house or in the minds of this people. Mexico has a lot of buyers i know they are not losing much but this will blow over and Donald will some how turn this around and make the economy better

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    1. It is possible that he could have a plan, however, I feel like Donald Trump is the type to boast a lot. I think that if he had a plan more people would know about it. Also, even if he did have a plan it probably wont be as good as what we were doing (as a country) before that, for if there was a better option we would most likely already be pursuing it.

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  3. I believe that Donald Trump's attempt to cut America's ties with Mexico would be a serious detriment to our country. As said in the post, our corn exports brought in over 2 Billion dollars last year. Losing money by not exporting to Mexico is not a smart plan. How does Donald Trump plan to replace this money? The answer is he does not have any plans. This is not the first time that Trump's mouth has negatively impacted our country. And on top of that, he fails to realize that Mexico is not affected by this. As said in the article, they can easily go to countries like brazil for their business.

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  4. This situation will hurt the american economy because America trades a lot with Mexico. I believe Trump should set up and be a good President and fix this situation. As President you take on the responsibility of making sure America stays up and running and by cutting off relates with Mexico is not in the best interest of America because I did some research and found out that America imports from Mexican trade about 295 billion dollars and thta was in 2016 ( http://www.marketwatch.com/story/trump-calls-us-mexico-trade-one-sided-heres-the-reality-2017-01-26 )heres the link if you want to check me up on that,

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  5. I think that it can go both ways either way its just as bad as it is good. It can hurt us in a way where we lose a liable trade partner in Mexico. Also it can benefit Mexico in creating new jobs. Its up to our president to do whatever he can to help the country strive. That means economically and politically. If it there are benefits from cutting ties with Mexico then let him do what he has to.

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  6. I agree with zack. This can be beneficial to mexico but it can harm us as well. We will have to find another source of corn which can hurt the flow of corn in the U.S. The only other way this can be positive is if the U.S. uses this issue to create more jobs for people to grow corn domestically

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