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U.S. Protectionism Leads To Mexican Retaliation

by @ 5:51 pm on March 17, 2009. Filed under Barack Obama, Economics, Foreign Affairs, Mexico, Politics

Or, to put it more simply, we’ve got a little trade war brewing south of the border, down Mexico way:

MEXICO CITY — Mexico said Monday it will increase tariffs on about 90 U.S. products in retaliation for last week’s decision to end a pilot program that allowed some Mexican trucks to transport goods in the United States.

Economy Secretary Gerardo Ruiz Mateos said the U.S. decision violates a provision of the North American Free Trade Agreement that was supposed to have opened cross-border trucking by January 2000.

“We consider this U.S. action to be wrong, protectionist and a clear violation of the treaty,” Ruiz Mateos told reporters. “By deciding to protect their trucking industry, they have decided to affect other countries and the region.”

The measure will affect about $2.4 billion in trade involving approximately 90 agricultural and industrial products from 40 U.S. states. Ruiz Mateos said the department later this week will publish a list of the products, which he said were chosen to represent a large number of U.S. states and significant trade items.

He did not specify how much tariffs would be increased, but said “the retaliatory measures are the cost the United States is going to have to pay for failing to fulfill its obligations under NAFTA.”

And, as a result, the manufacturers and growers of 90 American products, along with all the businesses that support them, will suffer because the Obama Administration chose to curry favor with it’s anti-free trade/anti-competition friends in the labor unions – most specifically, the teamsters who would have to compete with Mexican drivers bringing goods across the border.

Nice going Barack.

H/T: Jason Pye

One Response to “U.S. Protectionism Leads To Mexican Retaliation”

  1. [...] Then, as the campaign made it’s way though Ohio and Pennsylvania, two states where sentiment against free trade ran pretty high last year, Obama heightened that rhetoric at the same time that his advisers were apparently telling the Canadians to ignore what the candidate was saying. After the primary battle ended in June, though, Obama said that the really didn’t mean what he’d been saying in March about renegotiating NAFTA. Finally, when he became President, and in a move that clearly violated the letter and spirit of the NAFTA treaty, Obama signed legislation that placed restrictions on Mexican trucking that caused our neighbor to th… [...]

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