Mexico is as Valuable as Its Trading Partners: President Sheinbaum

Mexican President Claudia Sheinbaum, Nov. 27. 2024. X/ @LaondaOaxaca


November 27, 2024 Hour: 12:35 pm

She responded firmly to Ontario Premier Doug Ford’s reckless comments.

On Wednesday, Mexican President Claudia Sheinbaum firmly responded to Ontario Premier Doug Ford’s offensive remarks about the dignity of her country.

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Previously, the Canadian conservative politician referenced U.S. President-elect Donald Trump’s threats to impose steep tariffs of 25% on Mexico and Canada. In commenting on the matter, he offended the Latin American nation.

“Comparing us is the most insulting thing I’ve ever heard from our U.S. friends,” Ford said indignantly, rejecting the idea that the U.S. faces the same border issues with Canada as it does with Mexico.

In response, during her morning press conference, Sheinbaum reminded foreign politicians and business leaders of key aspects of the trade relationship between Mexico, the United States, and Canada.

During his first administration, Trump intended to replace the North American Free Trade Agreement (NAFTA), in effect since 1994, with a treaty limited to the United States and Mexico. At that time, however, Mexican President Andres Manuel Lopez Obrador advocated to keep Canada included in the United States-Mexico-Canada Agreement (USMCA), which the Republican politician now seeks to dismantle.

“President Lopez Obrador personal conversations, even with Justin Trudeau, to assure him that Mexico would advocate for Canada to remain in the new agreement,” Sheinbaum recalled.

“We do not accept the view that Mexico is less. As we have always said, we are a great country and a cultural powerhouse that competes with other economies. We see ourselves as equals to our trade partners, particularly with the United States and Canada,” the Mexican President declared.

During the press conference on Wednesday, Economy Secretary Marcelo Ebrard warned about the potential loss of jobs in the United States, along with inflation—such as a US$3,000 increase in the price of a pickup truck—if Trump imposes 25 percent tariffs on on “all products” from Mexico and Canada until the “invasion” of migrants and drugs is stopped.

“In the end, these taxes will affect U.S. consumers but also businesses. Approximately 400,000 jobs in the United States will be lost. How do we know this? That figure comes from consultations with various companies,” he said, noting that the primary companies affected would be U.S. automakers such as General Motors, Stellantis, and Ford.

Ebrard pointed out that total imports in the United States represent 12.7% of its gross domestic product (GDP). “This tax primarily impacts the industrial and technological complex, whose main representatives are these three U.S. groups. In other words, it’s shooting yourself in the foot,” he commented.

Ebrard defended the U.S.-Mexico-Canada Agreement (USMCA), in force since 2020 and signed during Trump’s first presidency (2017–2021). The trade exchange among the three North American countries totaled US$1.777 trillion from January to September 2024, equivalent to 30 percent of the global GDP.

For this reason, Ebrard stated that Mexico’s proposal to Trump’s transition team would be to strengthen “regional stability,” promote “shared prosperity” with well-paying jobs and infrastructure investment, and boost “global competitiveness” by optimizing North American supply chains.

“So, there are two options on the table: we can fragment and divide ourselves with accusations and tariffs—we can do that if we want because they impose a tariff, and then we impose one, and Canada imposes another; it will be an endless division—or we can build a strong and competitive region together,” he argued.

The secretary affirmed that he has received support from companies in the aerospace, agricultural, and financial sectors. He also indicated efforts to expedite final approval of the renewed free trade agreement with the European Union (EU) and negotiate a new one with Brazil.

teleSUR/ JF Source: EFE