Mexico - China Trade Restrictions
From the Ag Information Network, I’m Bob Larson. The Mexican government is considering tougher trade restrictions on Chinese imports, a move likely to be supported by President Trump.
The evaluations are coming as part of negotiations for an extension of the US-Mexico-Canada Agreement.
Arlan Suderman, Chief Ag Economist at StoneX Group, says he believes renewing USMCA is a must …
SUDERMAN … “When it comes to USMCA, we're going to trade with Mexico. Politically, you can't cut that off. There's a six-to-10-year window there, and President Trump is simply working with President Sheinbaum of Mexico to negotiate terms that keep China from transshipping stuff to the United States. That's what it's all about.”
Suderman says while Mexico is taking steps in the right direction, the negotiations are going to take time …
SUDERMAN … “President Sheinbaum has done as good a job as anybody, any world leader, in working with President Trump. They will find solutions and they will come to an agreement. And we've already seen her take steps to try to limit the effect of Chinese transshipments through. There's a lot of time, and it'll be the 11th hour before it'll be settled.”
Both Mexico and Canada have had to make concessions to the U.S. over the past several months in order to keep talks of renewing USMCA going.
