Canada and Mexico get cosy with trade plan to bypass US
Canada and Mexico are closing in on a scheme to bypass the US to reduce ...
© Americanspirit
By Alex Lennane
Yesterday marked the beginning of what could be a drawn-out spat between the US and Mexico, with cancelled meetings and annoyed tweets. Bloomberg looks at the feud, and argues that a trade war would be damaging on both sides of the border. Interestingly, though, it also notes that “Trump has a point”, as the US trade deficit with Mexico represents 12% of the total imbalance. Nevertheless, the interdependence of manufacturing supply chains, as well as the fact that some 5m US jobs depend on trade with Mexico, means a trade spat could hurt those in Trump’s rust belt heartland.
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