The President of Mexico has been very vocal insisting Mexico will never pay for Trump’s border wall. Shockingly one of the first world leaders to congratulate Trump on his victory was Mexico’s President, Enrique Peña Nieto. It seems that Mexico is ready to negotiate a new economic deal to prevent a trade war. PLEASE TAKE NATIONAL POLLS AND PETITIONS. YOUR OPINION MATTERS Results Are Sent To Congress - Let Congress Hear Your Voice
PLEASE TAKE NATIONAL POLLS AND PETITIONS. YOUR OPINION MATTERS
Results Are Sent To Congress - Let Congress Hear Your Voice
Mexico is very worried that President Trump will follow through on his promises to conduct massive deportations, to apply new trade tariffs and to demand renegotiation of the North American Free Trade Agreement. Pena Nieto’s invitation for Trump to make an official Mexican visit in August now seems brilliant.
The Mexican government promised to intervene in currency markets to prevent any disruptive fall in the peso from the U.S. elections. But Mexico’s financial markets have been hammered since Election Day, with their peso currency crashing by 13 percent.
This week’s panic selling was worse than the start of Mexico’s 1994 “Tequila Crisis.” That disaster came a year after the signing of NAFTA in December 1993 by Mexico’s President Carlos Salinas and U.S. President Bill Clinton.
NAFTA suddenly opened unlimited access to Mexico’s formerly protected consumer and industrial markets. The ensuing U.S. export boom saw America’s balance of payments surplus with Mexico spike over 1,000 percent to $29.4 billion in 1994. But the resulting capital flight forced Mexico’s central bank to raise interest rates, dramatically.
Mexican banks began to collapse as borrowers could no longer pay loans. The Mexican government was forced to let the peso’s exchange rate “float.” With the peso suffering a 50 percent devaluation and Mexico about to default, the country had to ask the U.S. for a bailout. Mexico still has access to a $90 billion IMF credit line granted 22 years ago.
Mexico’s President Enrique Pena Nieto’s phone call to President-elect Trump early on the morning of November 9 has already sparked agreement for a meeting before President-elect Trump is inaugurated in January, according to Stratford Global Intelligence. The outreach seems to indicate that Mexico values its relationship with the United States and will be “flexible” in negotiations to maintain it.
President Elect Donald J. Trump has made Americans many promises. Prior to taking office, Trump is already making plans for the implementation of some. Do you trust Trump, Mexico will pay for the wall?