June 22, 2018

Mexico's Presidential Election Stirs Worries of Trade War With US

A Mexican think tank predicts long-term losses for both countries under any trade-war scenario.

Dog border inspection hero A dog inspects a truck crossing the U.S.-Mexico border at the Mariposa Port of Entry. (PHOTO: AZPM Staff)

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MEXICO CITY — The campaign for the next president of Mexico is in its last week, and many are worried about the future of business with the U.S. A prominent Mexican think tank is urging the future administration to not engage in a war over tariffs.

There are a number of scenarios in a trade war between Mexico and the U.S. In all of them, there are long-term losses for the economies of both countries. So says Manuel Molano, an economist with the Mexican Institute for Competitiveness.

"In the long term, what makes sense for a small economy like Mexico is opening up unilaterally to the rest of the world," Molano said.

This would mean Mexican businesses buying more from Southeast Asian and Latin American countries. Still, under Molano's models, the best possible outcome would be no trade war and no tariffs at all.

Fronteras Desk
This story is from the Fronteras Desk, a collaboration of Southwestern public radio stations, including NPR 89.1. Read more from the Fronteras Desk.
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