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 come 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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How can Mexico leverage its proximity to the U.S. to enhance its trade relations amid U.S.-China tensions?
**Interview with Dr. Javier Torres, Economic Analyst and Former Trade Minister of Mexico**
**Editor:** Thank you for joining us today, Dr. Torres. With the escalating tensions in U.S.-China economic relations, what is your perspective on how this affects Mexico, particularly as it relates to trade with the United States?
**Dr. Torres:** Thank you for having me. The current dynamics certainly put Mexico in a unique position. As the U.S. strategic focus shifts more towards countering China’s economic rise, Mexico’s role as a neighboring trade partner becomes increasingly vital. We are seeing that Mexico has become one of the main exporters to the U.S., which could potentially position us favorably amidst these tensions.
**Editor:** You mentioned that U.S. tensions with China might allow for an increased focus on Mexico. In what ways do you see Mexico capitalizing on these tensions?
**Dr. Torres:** There are several avenues. First, supply chain diversification is a key priority for U.S. companies. As they look to reduce dependence on China, Mexico is well-placed to attract investment and manufacturing operations due to our proximity and existing trade agreements, particularly USMCA. If we can demonstrate stability and cooperative trade practices, we might see a significant influx of business from the U.S.
**Editor:** The Mexican minister referred to efforts to mitigate conflicts between Washington and Beijing. Could you elaborate on what strategies Mexico might employ to strengthen its economic ties with the U.S. while navigating these tensions?
**Dr. Torres:** Absolutely. Diplomatic engagement will be critical. Mexico can work with U.S. officials to address any trade concerns that arise from the focus on China. Additionally, promoting sectors where Mexico has a comparative advantage, like manufacturing, agriculture, and technology, will be essential. By ensuring that our interests align with U.S. economic goals, we can create a buffer against any fallout from U.S.-China confrontations.
**Editor:** In light of the intensifying competition between the U.S. and China, what should Mexican policymakers prioritize to ensure that Mexico remains an attractive partner for the U.S.?
**Dr. Torres:** Policymakers should focus on enhancing infrastructure and logistics to support ease of trade, reinforcing labor standards, and promoting innovation through technology adoption. Furthermore, maintaining a stable regulatory environment will instill confidence in U.S. investors. As these geopolitical shifts occur, adaptability will be key for Mexico to seize new opportunities.
**Editor:** Thank you, Dr. Torres, for your insights today. It seems Mexico has a pivotal role to play as the U.S. recalibrates its economic strategies concerning China.
**Dr. Torres:** My pleasure. These developments are critical not just for Mexico but for the entire North American economy. As we navigate these changes, collaboration and clear communication will be essential for us all.
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This interview format encapsulates the current state of U.S.-China economic relations and how Mexico might strategically position itself as a key partner for the U.S. while addressing the challenges posed by these tensions.