A trade war that we don’t need

After decades of economic integration the United States and its southern neighbor has set an extremely important trade relations with a turnover of 1.4 billion dollars. Mexico is the second largest foreign market for U.S.-made products. Trade and investment between the two countries contribute to the enrichment of both countries, as well as countless American companies, workers and consumers, and now they can all suffer from a trade war. In addition, Mexico has become an important partner in the promotion of liberal values, the establishment of multiparty democracy and the steady expansion of economic freedoms within his country. The state has become a country of the middle class, and the flow of Mexicans to the North decreased. Home in recent years back home, a lot more people.

Out of respect for these mutually beneficial relations, Mexican President Enrique peña Nieto did not succumb to provocations, to find a common language with the trump. He invited him to a meeting in Mexico city last year, which was politically profitable for trump and quite risky for peña Nieto. He is in search of constructive cooperation planned to visit Washington next week.

Then came the end. Trump has placed dynamite under the structure in which the leaders of various parties in both countries have carefully built over the decades. And for what?

This week, the President said that he intends to begin construction of an expensive and useless border wall, fulfilling a campaign promise based on false ideas about illegal immigration and the best way of dealing with it. Then trump promised again that the construction will be financed by Mexico. President Enrique peña Nieto could not endure such humiliation, because faced with the understandable political pressure within the country. Mexico’s President has canceled a planned meeting with trump.

At this stage, more wise leaders could still defuse the situation and reduce tensions. But instead, the press Secretary of the White house Sean Spicer said that the President is considering the introduction of a new tax on Mexican imports, which will allow you to pay for the wall. Without providing details, Spicer suggested that the tax will bring in about $ 10 billion a year. He later explained that this is only one of several options. Depending on these options, such an introduction can really harm Mexico. But it also will probably manifest as a tax on Mexican goods for the American consumers. In other words, the wall will Finance American consumers, because they will pay higher prices grown in Mexico tomatoes, made in Mexico, clothes and assembled in Mexico cars.

U.S. officials should try to establish a relationship and to repair the damage this week. The United States took nearly ten years to recover from the economic collapse after the last recession. A devastating trade war with one of the closest partners of America is a threat to the long-awaited recovery.

 

 

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