Trump’s rhetoric on collision course with Mexico’s rise as a multipolar power

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CDMX – The president of Mexico , Andrés Manuel López Obrador ( AMLO ), proposed on Thursday to his colleague from the United States, Donald Trump , in response to threats of tariffs, a path of dialogue instead of confrontation to resolve the immigration issue.

 

Mexican Deputy Foreign Minister Jesus Seade said that if the United States fulfills its threat to impose tariffs, Mexico will have a strong response, which for all intents and purposes appears more like yet another brewing trade war.

Contrary to common misconceptions, Mexico is on the rise as a multipolar power – its economy being the 15th largest in the world in nominal terms and the 11th largest by purchasing power parity, according to the International Monetary Fund. With nearly 70% of its population now with reliable internet access, it has also quickly integrated into the ‘information’ economy as well.

skyline of mexico city’s reforma avenue

Trump announced on Thursday that as of June 10, it will impose a 5.0 percent tariff on all Mexican products imported by the US, if Mexico does not solve the massive migration, especially of Central Americans, which has reached US territory in recent months.

In response, on the same day, AMLO sent a letter to the US president that in a tittle he called: “President Donald Trump in peace” and in which he invites him to resort to dialogue and to act “with prudence and responsibility”.

 

López Obrador reminded Trump that since the beginning of his government, last December, he proposed “opting for cooperation for development and helping the Central American countries with productive investments to create jobs and resolve this painful issue in depth.”

AMLO initially expressed support for some of Trump’s concerns regarding the migration of Central American economic migrants through Mexico and onward to the United States. However, as reason would seem to indicate, this would best be resolved through a U.S commitment not to interfere in the political economies of those states – reversing a policy that the U.S has had for countless decades. Of recent significance was the Honduran refugee crisis, one created by the Obama administration led by Hillary Clinton – a campaign which resulted in a disastrous regime change in 2009, ousting Zelaya, and the murder of popular leaders.

The Mexican president mentioned that “human beings do not leave their villages for pleasure, but out of necessity”.

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He announced, finally, that a Mexican delegation, led by Foreign Secretary Marcelo Ebrard, will travel to Washington this Friday “to reach an agreement for the benefit of the two nations.”

At a separate press conference, the North American Deputy Secretary for Foreign Affairs, Jesús Seade, affirmed that if the US government were to meets its threat to impose tariffs on Mexico, the AMLO Government will respond forcefully.

Trump’s announcement that he is about to impose a 5.0 percent tariff on Mexican products “is something disastrous, that threat taken to action would be very serious (…). If it should happen, we must respond forcefully,” said Seade.

At the same time, Trump’s threats contain an element of proposed self-harm, in terms of national economies. Since the imposition of NAFTA, the US, Canadian, and Mexico economies have grown further intertwined, with an effective free trade zone between the states. Tariffs on Mexican products are in effect, tariffs on US and Canadian products as well.

This is because Mexico both imports U.S raw materials and manufactured parts, which in turn are a necessary component of the production process for finished goods then imported back to the U.S. Furthermore, U.S shareholders within these nominally Mexican firms are significant, and indeed a number of Mexican firms might be better categorized as American.

The outlook for Mexico’s economy is solid, as it further integrates both Latin American and North American economies, a policy which has upset the financial-media industrial complex in New York. Mexico has adopted a policy tilting risks for growth downward. On May 16, the central bank’s board voted unanimously to leave its main lending rate unchanged at 8.25%, which encourages workers and savers, and decreases demand-pull inflation.

The rise of AMLO has a marked the beginning of a new politics in Mexico, which brings together sectors traditionally associated with the left – human and social services, an emphasis on the physical economy – with a business class becoming more nationalized, as it is increasingly aware that the U.S has effectively been creating the politics of a failed-state in Mexico’s north and south.

 

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