Business without borders:

Following up with our previous issue – America’s dairy trade with Mexico is now at risk. Mexico is U.S.’ number one dairy importer, spending almost twice as much as Canada on U.S. dairy in 2016 – $1.2 billion. Due to the ongoing rhetoric about NAFTA re-negotiations, Mexico appears to be looking for new trading partners to ensure that they have market alternatives. “And it’s not just the NAFTA talk. Demanding that Mexico pay for a border wall and taking a hard line on immigration is likely have an impact too,” said Ben Laine, an economist at CoBank Acb. “Concerns around NAFTA and trade are what’s keeping the markets worried.”Mexico increased its exports to Europe by 122 percent during the first few of months of 2017 – could this be cause for concern?

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US-MX Relations:

Not that we are keeping track – but it’s time for the weekly NAFTA rumors. With the 90-days notice requirement before formally entering into negotiations on the trade deal, the White House was apparently mulling an executive order declaring the U.S.’ intent to withdraw from NAFTA – a move that could trigger a drastic series of events. However, with only a few days remaining before the 100th day of his presidency, the administration issued a statement stating that President Trump was ready to terminate NAFTA but reconsidered at the last minute and is now open to renegotiate the terms. Senator John McCain had previously urged Trump not to pull the U.S. from NAFTA, claiming it would devastate Texas’ economy. “I really hope he doesn’t do that,” said Sen. McCain this past Wednesday to CNN politics. It looks like Trump decided to follow Sen. McCain’s advice after all.

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PR & Communications for Business:

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