Just a Little Protectionism? Then Comes the Escalation
Tuesday, March 17, 2009From Reuters, “Mexico slaps tariffs on U.S. goods in truck feud“:
MEXICO CITY/WASHINGTON (Reuters) - Mexico slapped tariffs on 90 American agricultural and manufactured exports on Monday in retaliation for Washington’s move to block Mexican trucks from using U.S. highways.
Mexican Economy Minister Gerardo Ruiz said about $2.4 billion worth of exports from 40 U.S. states would be affected and that his government would soon publish a list of them.
Last week, the U.S. Congress canceled funding for a test program begun by the Bush administration that allowed Mexican long-haul trucks to circulate in the United States in compliance with the North American Free Trade Agreement.
“We consider this action by the United States to be mistaken, protectionist and clearly in violation of (NAFTA),” Ruiz told reporters in Mexico City.
More…
- Wall Street Journal editorial, “The Teamsters War“
- Wall Street Journal, Mary Anastasia O’Grady, “Washington Starts Another Trade War“
In related news, Brazil’s president issues a warning, “Lula Urges Nations to Avoid ‘Drug’ of Protectionism“:
March 16 (Bloomberg) — Brazilian President Luiz Inacio Lula da Silva said countries seeking to help their economies weather the global slump must avoid turning to protectionist policies.
“Protectionism is a drug that provides temporary relief, but in the end leads to major crisis,” Lula told investors in New York today.
Big hairy deal. Our deficit with Mexico is already 5 billion dollars. Let’s all pretend this is going to make a difference.
http://www.census.gov/foreign-trade/balance/c2010.html#2008
[...] Just a Little Protectionism? Then Comes the Escalation [...]