With President Trump threatening the NAFTA (North American Free Trade Agreement), Mexico is trying to woo the European nations to soften the blow. NAFTA is a 23-year-old free-trade treaty between Canada, Mexico and the United States.
Mexico is working towards carving out a deal where they can sell their cheese and orange juice to the Europeans and in turn, the European manufacturers will find a market for their products in Mexico.
Phil Hogan, the top E.U. agriculture official who met Ildefonso Guajardo Villarreal, the Mexican Economy Minister on Wednesday said, “We hope that over the next few days that we will be able to have a positive outcome on Mexico.”
Alessia Mosca, the E.U. lawmaker who is in charge of Mexico deal for the European Parliament said, “The E.U. is left as practically the only big player in the global arena without the U.S., so it’s a necessity to conclude agreements. For this reason, there has been a speed up to the talks.”
It’s not only Mexico who is searching for new friends. In fact, many other nations are on a lookout since the time the U.S. trade officials criticized the World Trade Organization in a ministers’ meeting in Buenos Aires.
Besides trying to carve out an agreement with the European Union, Mexico is also looking forward to forming some sort of ally with Brazil, Asia and Argentina. Europe, on the other hand, is looking towards Australia, New Zealand and Latin America.
Mexico is doing all this exercise to secure itself against any economic harm in case the Trump administration finally decides to end NAFTA. According to this treaty nearly 80% if the total Mexican exports go north to the United States. If NAFTA ends and the cost of imported corn and car parts increases then the nation should be prepared to counter it by having proper trade relations in place with South America or Europe.