The minister added: “The tension in economic relations with China will occupy a central place in the US strategy.” “We are well aware that the United States is our main economic partner… We will try to some extent to mitigate the upcoming conflict and competition between Washington and Beijing.”
Speaking about the economic relations between the American side and his country, the Mexican minister pointed out that it has now become one of the main exporters to the United States, and expressed his confidence that by Trump’s second presidential term, Mexico will be in a better position to renegotiate the free trade agreement than it was during His first presidential term 2017-2021.
“The current starting point is much better than it was six years ago,” he said.
When Trump was still a presidential candidate for the Republican Party, he said that, if elected, he intended to increase tariffs on products coming from China and other countries.
It is noteworthy that the first period of Trump’s presidency witnessed “trade wars” between the United States and China. In practice, Trump’s successor, current President Joe Biden, has continued this economic confrontation: threats have been issued to increase tariffs on imports of Chinese steel, aluminum, and electric cars.
Earlier, calculations conducted by RIA Novosti confirmed that the main exporter of goods to the United States in the first eight months of 2024 was Mexico worth $335 billion, followed by China ($279 billion) and Canada ($275 billion). At the end of this year, Mexico will maintain its leadership in this area, with a supply volume of $496 billion. China comes in second place with a value of $431 billion.
In July, the White House announced that when importing from Mexico and in order to enter the US market duty-free under the US-Canada-Mexico Free Trade Agreement, stainless steel products as well as aluminum must be of Mexican origin, but if the metals used are sourced from outside Mexico A 25% customs duty and a 10% tax will be imposed on Mexican aluminum goods produced using raw materials from China, Russia, Belarus and Iran.
Source: Novosti
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What strategies will Mexico implement to maintain competitiveness in key export sectors while balancing relationships with both the US and China?
**Interview with Mexican Minister of Economy: Navigating US-China Economic Tensions**
**Editor:** Thank you for joining us today, Minister. You mentioned recently that the tension in economic relations between the US and China will play a central role in US strategy. How do you see this tension impacting Mexico’s economic relationship with the United States?
**Minister:** Thank you for having me. The ongoing tension between the US and China is indeed a significant factor that we must navigate carefully. As the United States continues to reassess its economic partnerships, Mexico stands as a robust and strategic ally. We acknowledge that our primary economic relationship is with the US, and we aim to leverage this situation to enhance our trade opportunities while mitigating any negative fallout from US-China dynamics.
**Editor:** You mentioned Mexico’s role as a key exporter to the United States. Can you elaborate on how this status could influence Mexico’s strategy going forward?
**Minister:** Certainly. As one of the main exporters to the US, we have a unique advantage. Our proximity and the existing trade frameworks allow us to bolster our exports, especially in sectors like automotive, electronics, and agriculture. We intend to position ourselves as a reliable supplier for American businesses that may seek alternatives to Chinese imports, thus strengthening our bilateral relationship.
**Editor:** With the potential for increased competition between the US and China, what specific measures are you planning to implement to ensure Mexico remains competitive?
**Minister:** We are focusing on several key areas: Firstly, enhancing our infrastructure to facilitate smoother exports; investing in technology to improve our manufacturing capabilities; and fostering a business environment that attracts foreign investments. Additionally, we’re working on trade agreements that can further solidify our position as a preferential partner for the US.
**Editor:** You mentioned trying to mitigate conflict and competition. How do you plan to balance your relationships with both the US and China?
**Minister:** This is a delicate balancing act. We believe in maintaining open dialogue with all parties involved. While our economic partnership with the US is vital, we recognize that China is also a significant player in the global economy. We will seek to engage with Chinese stakeholders to ensure our trade routes and investments remain robust. Our goal is to foster cooperation rather than conflict.
**Editor:** Thank you, Minister, for sharing your insights on these critical issues. It will be interesting to see how Mexico continues to adapt in this evolving global landscape.
**Minister:** Thank you for the opportunity to discuss this important topic. We are committed to navigating these challenges effectively for the benefit of our economy and our people.
