Trump Sours Relations With Mexico After Tariff Talk

02 February, 2017, 00:46 | Author: Essie Rivera

Their conversation comes as U.S. President Donald Trump has repeatedly said he plans to renegotiate the North American Free Trade Agreement that involves the three countries.

There is no rupture in dialogue with the United States but Mexico has begun working on strengthening its presence, relations and trade treaties with Latin America, Europe, Asia and Africa, the Foreign Affairs Secretary told Senators belonging to the governing party.

Mexico is one of the top three markets for US farm production.

With regard to the now tenuous relationship with the U.S., Videgaray said "there are moments in life when it is necessary to understand when to say no", even with friends, partners and allies such as Mexico's northern neighbor.

Trump views NAFTA as a "one-sided deal" in favor of Mexico.

The peso has hit a series of record lows since Trump's election on concerns he could rip up a free trade deal with Mexico, which sends almost 80 percent of its exports to its northern neighbor.

"We are already in talks" with South Korea, he said. They are anxious Mexico could use tariffs to strike back against Trump's plans to rework NAFTA and build a wall to keep out illegal immigrants.

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"They're going to retaliate", he said about Mexico.

Mexico could target sanctions on farm products, in particular, in an attempt to punish rural communities that supported Trump in the presidential election, said Katherine Baylis, associate professor of agricultural and consumer economics at the University of IL.

Trump retaliated against Nieto's resistance with a tweet stating that "If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting", in reference to a planned meeting between the two leaders.

Mexico's version of the joint statement said Trump and Peña Nieto would refrain from publicly discussing payment for the wall.

In 2009 and 2010, Mexico put tariffs on 99 American exports in retaliation when Washington blocked Mexican trucks from using USA highways.

Besides Mexican officials and businesses, the summit in Orlando was expected to include participants from the Florida Chamber of Commerce, Enterprise Florida and representatives from Florida's seaports, including Port Tampa CEO Paul Anderson and PortMiami director Juan Kuryla.

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