Protectionism Would Hurt the U.S. Economy, Mexican Finance Minister Meade Says David Harrison - The Wall Street Journal
go to original October 9, 2016

Finance minister José Antonio Meade, who took up the post in September, aims for big spending cuts and return to surplus. (Reuters)

Mexican Finance Minister José Antonio Meade warned in an interview Saturday that adopting protectionist measures would hurt both the U.S. and Mexican economies.

The recent rise of antitrade political forces around the world, particularly in the U.S. where Donald Trump won the Republican presidential nomination on a protectionist platform, has worried finance ministers and central bankers assembled here for the fall meetings of the International Monetary Fund.

That concern is particularly acute in Mexico, where exports account for about 35% of the economy. Mr. Trump has threatened to pull the U.S. out of the North American Free Trade Agreement if elected, ending a 22-year-old trade pact that has helped open up the Mexican economy.

“Mexico is integral to the North American story,” Mr. Meade said in an interview with The Wall Street Journal on the sidelines of the meetings. Imposing trade restrictions in the U.S. “would not be consistent with strengthening either of our economies.”

U.S.-Mexico trade has evolved significantly since the early days of Nafta, Mr. Meade said. Rather than trading finished goods, North American countries now move products across borders multiple times before they are ready for their final sale.

“Every time Mexico exports a dollar, 40 cents of it comes out of goods produced within the U.S.,” he said.

Read the rest at The Wall Street Journal

Related: Mexico Should Diversify Its Market, Look Toward China, Says Former President Vicente Fox (Xinhua)

Related: The Truth No Politician Will Utter: Trade Is Good for America (Market Watch)

Related: Mexican Economists Call for Structural Reform Amid Bleak Economic Outlook (Xinhua)

Related: Global Elites Step Up Defence of Openness as Populism Rises (Live Mint)

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!