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 does Mexico plan to address potential challenges in export growth while maintaining labor standards and environmental sustainability?
**Interview with Carlos Torres, Mexican Minister of Economic Affairs**
**Editor**: Thank you for joining us, Minister Torres. You recently spoke about the shifting dynamics in economic relations between the U.S. and China. Can you elaborate on how these tensions are affecting Mexico’s position?
**Carlos Torres**: Absolutely. The increasing competition between the U.S. and China is certainly reshaping the economic landscape. Mexico recognizes that we are in a unique position as a major exporter to the United States. We aim to leverage this relationship, while also being mindful of the geopolitical tensions at play.
**Editor**: You mentioned trying to mitigate the upcoming conflict between Washington and Beijing. What specific strategies does Mexico plan to employ to navigate these challenges?
**Carlos Torres**: Our primary goal is to strengthen our economic ties with the U.S. by enhancing our supply chains and fostering key industries. We want to position Mexico as a reliable partner, which can help reduce the pressure both countries face from their respective conflicts with China.
**Editor**: With Mexico’s rapid growth as an exporter to the U.S., how do you envision this impacting domestic industries?
**Carlos Torres**: Mexico is poised to benefit significantly. By increasing exports, we can stimulate domestic production and create jobs. We’re actively encouraging investment in sectors where we have comparative advantages, such as manufacturing and technology, which will further solidify our role in the U.S. market.
**Editor**: Do you foresee any particular challenges in this economic maneuvering?
**Carlos Torres**: Yes, of course. We must navigate potential trade barriers and the shifting regulatory environment. Additionally, we must ensure that we are competitive without compromising on labor standards and environmental sustainability. It’s a delicate balancing act.
**Editor**: what is your message to both the U.S. and Mexican businesses regarding this evolving economic relationship?
**Carlos Torres**: My message is one of collaboration. By working together, we can capitalize on the current situation and create a win-win scenario that strengthens our economies in the face of global uncertainties. Let’s focus on innovation, sustainability, and building resilient supply chains that benefit both our nations.
**Editor**: Thank you for your insights, Minister Torres. It will be interesting to see how Mexico navigates these complex economic waters.
**Carlos Torres**: Thank you for having me.
