AMLO Makes Reasonable Demands For Helping Cornpop With The Border

dailymail  | Mexican President Andres Manuel Lopez Obrador has spelled out a series of demands from the U.S. ranging from visas to a multi-billion infusion of funds – even as the Biden administration seeks to pressure Mexico to do more on its part to address the migrant crisis.

He wants the U.S. to deploy $20 billion plan to help Mexico and Central American countries dealing with the root causes of migration – while also calling for wholesale changes in U.S.-Cuba policy. 

'We are going to help, as we always do,' López Obrador said in a Friday speech 'Mexico is helping reach agreements with other countries, in this case Venezuela,' he said, before pivoting to his wish list.

'We also want something done about the (U.S.) differences with Cuba,' López Obrador said. 'We have already proposed to President Biden that a U.S.-Cuba bilateral dialogue be opened,' he said in remarks at a Friday press conference.

Lopez Obrador also said he wants the U.S. to provide visas to at least 10 million Hispanic migrants who have been living in the U.S. for 10 years or longer. 

His long list of demands come even as the Biden administration is asking Mexico to do more, as a surge of migrants continue to flow across the border. It also comes at a time when the Biden administration needs to show progress on the issue while getting hammered by Republican rivals and even some prominent Democratic mayors on the costs and social impacts of the surge.

Border encounters hit another stunning milestone in December with 300,000 apprehensions.

The U.S. is leaning on Mexico to do more to reduce those numbers. Late last month Homeland Security Secretary Alejandro Mayorkas and Secretary of State Antony Blinken flew to Mexico to meet with López Obrador.

In one sign that Mexico has the capacity to have an impact, arrests at the southern border fell to about 2,500 Monday, according to the Associated Press, a drop from 10,000 during a December peak.

 

The U.S. And Canada Will Sue And Sanction Mexico For Taking Care Of Mexicans

NC  |  But all of that changed when AMLO came to power in late 2018. For the first time in 30 years Mexico had a government that was not only determined to halt the privatisation and liberalisation of Mexico’s energy market but to begin dialling it back. Allegations of corrupt practices and price gouging by Iberdrola and other energy companies became a popular talking point at AMLO’s morning press conferences. The juicy contracts began drying up. Instead, a range of obstacles began forming, from disconnections to nonrenewal of permits and fines for price gouging.

The times of plenty had come to an end. And not a moment too soon.

At the rate things were going, the CFE would be generating just 15% of Mexico’s electricity by the end of this decade, says Ángel Barreras Puga, a professor of engineering at the University of Queretero; the rest would be generated exclusively by private, foreign companies.

“Who was going to control prices in the market? Foreign companies, with all that entails. Behind the foreign companies are their national governments. And we have seen how the US government, the US Ambassador and US legislators came to Mexico to try to pressure AMLO to change his policies. Ultimately, they are all lobbyists of private companies.”

There are few better examples of this than US Ambassador to Mexico Ken Salazar, as Ken Hackbarth reported for Jacobin at the time of Sakazar’s appointment in 2021:

Upon leaving (the US Interior Department] in 2013, Salazar went through the revolving door to work for WilmerHale, a law and lobbying firm with close ties to the Trump family, whose roster drilling- and mining-related clients included none other than — you guessed it — BP. From his lucrative new perch in the private sector, Salazar used his clout to support the Keystone Pipeline and the Trans-Pacific Protocol (TPP), whose “investor-state” provisions would let corporations challenge environmental regulations in private tribunals; fought against ballot initiatives that would limit fracking and distance oil wells from buildings and bodies of water; opposed climate lawsuits against the fossil fuel sector; and, in a highly questionable skirting of ethics rules, provided legal counsel to the same company, Anadarko Petroleum, that benefitted on multiple occasions from his stint in government…

The fact of sending an oil and gas lobbyist to lecture Mexico on renewable energy — one, moreover, representing an administration that just opened 80 million acres for drilling in the Gulf of Mexico and is approving drilling permits on public lands at a faster rate than Trump — would be comical if it were not so revealing of the ugly underbelly of US-Mexico relations.

More to Come?

The AMLO-Iberdrola deal has raised concerns in business circles that other foreign energy companies could face a similar fate as the Spanish utility, as AMLO government pushes to expand the state’s role in the energy sector. Bloomberg describes it as a warning shot for international energy companies.

“The choice of words and messages is deliberate,” said John Padilla, managing director of energy consultancy IPD Latin America, adding that such moves could be intentionally sending a warning to foreign companies amid protracted trade disputes with the USA on energy policy. “The main message for private sector investors, at least on the electricity side, is certainly not a good one.”

Mexico’s nationalist energy policies have already stoked the ire of its North American trade partners, Canada and the US, which argue that they violate the USMCA regional trade agreement by discriminating against Canadian and US companies. As Reuters reported a week ago, the Office of the United States Trade Representative (USTR) is considering making a “final offer” to Mexico negotiators to open its markets and agree to some increased oversight.

Failing that, USTR will initiate a dispute settlement against its southern neighbour. If the panel rules against Mexico and the Mexican government refuses to rectify its behaviour, Washington and Ottawa could impose billions of dollars in retaliatory tariffs on Mexican goods.

Mexico Continues Nationalizing Key Industries Despite U.S. Objections

qz  |  With AMLO's purchase of 13 Spanish-owned power plants, the majority of Mexico's electricity production is now state-controlled.

The Mexican government agreed to purchase 13 power plants from the Spanish energy company Iberdrola for $6 billion on Tuesday (April 4), giving its state-owned power company, Commission Federal de Electricidad (CFE), majority control over the country’s electricity market.

Mexican president Andres Manuel Lopes Obrador (AMLO) called the decision part of a “new nationalization” of some of the country’s major industries, including mineral and oil production, according to Reuters.

The acquisition of the power plants will give CFE control of more than 56% of Mexico’s total production—up from approximately 40%, and surpassing AMLO’s previously stated goal of 54%.

The US and Canada have strongly opposed AMLO’s actions, and have threatened a trade war if Mexico continues to roll back access for international corporations in Mexico’s power and oil markets.

Iberdrola said the power plants would be taken over by CFE within five months as it looks to reduce its operations in Mexican energy markets. The company’s CEO, Ignacio Galan, said that the deal was a win-win.

“That energy policy has moved us to look for a situation that’s good for the people of Mexico, and at the same time, that complies with the interests of our shareholders,” Galan said after a joint appearance with AMLO announcing the deal.

AMLO has repeatedly compared Iberdola’s power over Mexican resources to Spanish conquistadors of the 16th century, even threatening to pause diplomatic relations with Spain over perceived neo-colonial actions by foreign energy firms.

Less than a month ago, more than 500,000 people flooded Mexico City to commemorate the 85th anniversary of the nationalization of the oil industry by president Lázaro Cárdenas del Río in the aftermath of the Mexican Revolution.

AMLO addressed the crowd, promising to carry on Cárdenas’s legacy, specifically highlighting his decision to nationalize the country’s energy and mining sectors, including Mexico’s burgeoning lithium reserves in the Sonora desert.

“Mexico is an independent and free country, not a colony or a protectorate of the United States,” AMLO said in a forceful rebuke of American influence in the country’s economy. “Cooperation? Yes. Submission? No. Long live the oil expropriation.”

 

 

Why Doesn't Mexico Have A Fentanyl Problem?

theguardian  | Mexico’s president has written to his Chinese counterpart, Xi Jinping, urging him to help control shipments of fentanyl, while also complaining of “rude” US pressure to curb the drug trade.

President Andrés Manuel López Obrador has previously said that fentanyl is the US’s problem and is caused by “a lack of hugs” in US families. On Tuesday he read out the letter to Xi dated 22 March in which he defended efforts to curb supply of the deadly drug, while rounding on US critics.

López Obrador complained about calls in the US to designate Mexican drug gangs as terrorist organisations. Some Republicans have said they favour using the US military to crack down on Mexican cartels.

“Unjustly, they are blaming us for problems that in large measure have to do with their loss of values, their welfare crisis,” López Obrador wrote to Xi in the letter.

“These positions are in themselves a lack of respect and a threat to our sovereignty, and moreover they are based on an absurd, manipulative, propagandistic and demagogic attitude.”

Only after several paragraphs of venting, López Obrador brings up China’s exports of fentanyl precursors, and asked him to help stop shipments of chemicals that Mexican cartels import from China.

“I write to you, President Xi Jinping, not to ask your help on these rude threats, but to ask you for humanitarian reasons to help us by controlling the shipments of fentanyl,” the Mexican president wrote.

China has taken some steps to limit fentanyl exports, but mislabelled or harder-to-detect precursor chemicals continue to pour out of Chinese factories.

It was not immediately clear if Xi had received the letter or if he had responded to it. López Obrador has a history of writing confrontational letters to world leaders without getting a response.

López Obrador has angrily denied that fentanyl is produced in Mexico. However, his own administration has acknowledged finding dozens of labs where it is produced, mainly in the northern state of Sinaloa.

What Un-Parasitized People-Centric Leadership Can Do

gzeromedia  |  With so many other international stories dominating the news these days – Russia’s war in Ukraine, US-China tensions, Iran’s nuclear program, etc. – it’s easy to lose track of more positive stories. And when it comes to Mexico, the headlines suggest the country is struggling.

And I could write that story too. In most media, today’s Mexico conjures images of violent drug cartels and other organized crime groups, trouble at the US border, or large-scale protests led by an opposition that accuses the country’s president of a power grab that threatens democracy.

Mexico has its share of problems. But today, I want to give you three reasons for optimism that, politically and economically, Mexico is strong and getting stronger.

The China substitute

First, Mexico’s economic success remains closely tied to economic growth in the United States. (In 2022, Mexico’s total trade with the state of Texas was five times higher than its total trade with all of Latin America.) Over the years, that’s been a mixed blessing. When the US economy weakens, Mexico’s export revenue takes a hit. There are fewer remittances flowing south from Mexicans working in the United States. There are few American tourists pumping dollars into Mexican cities, towns, and businesses.

But over the decades, the US economy has remained strong and is currently running hot. Even with high inflation and rising interest rates, the US job market is strong, consumers are spending, and pandemic-weary tourists are traveling.

Mexico’s exports are surging. The country’s consumer confidence is close to its highest point in a generation. Add the reality is that the war in Ukraine has put strong upward pressure on global energy prices, boosting Mexico’s oil revenue. As the war grinds on, that advantage is likely to continue.

But the factor that matters most for coming years is souring US sentiment on relations with China. The Biden administration, both Democratic and Republican members of Congress, and many US governors are pushing for a significant national security and strategic decoupling from China and Chinese companies. US businesses are increasingly less confident they can navigate complicated US-China politics, abrupt changes inside China like the 180-degree turn on COVID policy, and other factors to continue to do profitable business in China.

Who benefits? Mexico. Particularly as “nearshoring” becomes a much more familiar word for many Americans. Nearshoring is the practice of shifting investment in manufacturing, production, and business operations closer to home to avoid the problems that come with both political risk and dangerously long supply chains.

Mexico already has the world’s 15th largest economy. While China, much of Europe, and Japan are aging, Mexico also has excellent demographics. Its population tops 130 million; its median age is 29.

A cost-conscious populist

Then there’s the country’s president. Andrés Manuel López Obrador has his fans and his detractors. But overall, he’s remarkably popular. After four years in office, his approval rating stands at 63%. How has he accomplished that? Mexico’s chief executive has crisscrossed the country by car and commercial airlines, visiting people and places, particularly in southern states, where national politicians are rarely seen.

But, talented populist though he is, he hasn’t bought support by launching a state spending spree. Even after the pandemic, Mexico’s debt-to-GDP ratio still stands at a healthy 50%, because the leftist López Obrador, aka AMLO, has confounded critics by both expanding the country’s tax base and keeping government spending in check.

Nor does Mexico’s president face the problem of balancing relations with multiple other countries. AMLO understands that his country’s giant neighbor is its primary source of both opportunities and challenges, and he’s invested in pragmatic relations with both Donald Trump and Joe Biden. His economic ambitions center on strengthening and expanding the USMCA trade agreement (NAFTA 2.0) rather than on hedging bets on Europe and Asia.

Strong institutions

The one area where AMLO is picking a fight that won’t help Mexico is on the question of judicial oversight of government. At the moment, he’s going after Mexico’s National Electoral Institute, which administers elections, by trying to cut 80% of its funding. This plan has filled Mexico City streets with hundreds of thousands of angry protesters, who warn that if he succeeds, AMLO would undermine Mexico’s ability to hold free and fair elections.

But the president isn’t going to succeed. The country’s Supreme Court is going to rule against him, and though AMLO can (and probably will) call on his own protesters to block traffic, Mexico’s governing institutions are plenty strong enough to keep the country moving forward.

In fact, that’s the lesson from Mexico’s presidential election of 2006, which AMLO lost by the smallest of margins and then rallied his supporters to occupy the center of Mexico’s capital for many weeks. But as I wrote in September 2006, the country’s political institutions absorbed that shock with no great difficulty. Politics continued. The currency remained stable. The economy moved forward.

AMLO has continued to wage war on a political elite he believes is plagued with corruption and cost him victory 17 years ago. But now, as then, Mexico is politically mature enough to handle challenges even larger than we now see in the president’s standoff with courts.

Finally, AMLO has given no indication he wants to remove presidential term limits from the country’s constitution, and unlike former US President Donald Trump and Brazil’s former President Jair Bolsonaro, he and his party are genuinely popular and have no need to contest the next election outcome with violence. And all of AMLO’s likely successors agree with the merits of nearshoring and deeper integration with the US, reinforcing the country’s long-term economic stability.

Make no mistake: Mexico will continue to face major challenges in the years ahead. Mexico must continue to develop its infrastructure, energy, and water supplies to fully benefit from nearshoring opportunities. Crime, corruption, and the need to manage shifting US border politics will remain formidable obstacles to progress. But advantages both external and internal provide a solid foundation for progress.

Everywhere You Look U.S. Foreigner Policy Infested By Name-Stealers....,

theatlantic |   “In the past two years, democracies have become stronger, not weaker. Autocracies have grown weaker, not stronger.” So President Joe Biden declared in his 2023 State of the Union address. His proud words fall short of the truth in at least one place. Unfortunately, that place is right next door: Mexico.

Mexico’s erratic and authoritarian president, Andrés Manuel López Obrador, is scheming to end the country’s quarter-century commitment to multiparty liberal democracy. He is subverting the institutions that have upheld Mexico’s democratic achievement—above all, the country’s admired and independent elections system. On López Obrador’s present trajectory, the Mexican federal elections scheduled for the summer of 2024 may be less than free and far from fair.

Mexico is already bloodied by disorder and violence. The country records more than 30,000 homicides a year, which is about triple the murder rate of the United States. Of those homicides, only about 2 percent are effectively prosecuted, according to a recent report from the Brookings Institution (in the U.S., roughly half of all murder cases are solved).

Americans talk a lot about “the border,” as if to wall themselves off from events on the other side. But Mexico and the United States are joined by geography and demography. People, products, and capital flow back and forth on a huge scale, in ways both legal and clandestine. Mexico exports car and machine parts at prices that keep North American manufacturing competitive. It also sends over people who build American homes, grow American food, and drive American trucks. America, in turn, exports farm products, finished goods, technology, and entertainment.

Each country also shares its troubles with the other. Drugs flow north because Americans buy them. Guns flow south because Americans sell them. If López Obrador succeeds in manipulating the next elections in his party’s favor, he will do more damage to the legitimacy of the Mexican government and open even more space for criminal cartels to assert their power.

We are already getting glimpses of what such a future might look like. Days before President Biden and Canadian Prime Minister Justin Trudeau arrived in Mexico City for a trilateral summit with López Obrador in early January, cartel criminals assaulted the Culiacán airport, one of the 10 largest in Mexico. They opened fire on military and civilian planes, some still in the air. Bullets pierced a civilian plane, wounding a passenger. The criminals also attacked targets in the city of Culiacán, the capital of the state of Sinaloa.

By the end of the day, a total of 10 soldiers were dead, along with 19 suspected cartel members. Another 52 police and soldiers were wounded, as were an undetermined number of civilians.

The violence was sparked when, earlier in the day, Mexican troops had arrested one of Mexico’s most-wanted men, Ovidio Guzmán López, the son of the notorious cartel boss known as “El Chapo.” The criminals apparently hoped that by shutting down the airport, they could prevent the authorities from flying Guzmán López out of the state—and ultimately causing him to face a U.S. arrest warrant.

The criminals failed. But the point is: They dared to try. If the Mexican state decays further, the criminals will dare more.

Mexico Is Doing More Damage To America Than All Our Prior Enemies Combined

townhall  |  Left-wing Mexican President Andres Manuel Lopez Obrador recently praised a visiting President Joe Biden: "Just imagine: There are 40 million Mexicans in the United States - 40 million who were born here in Mexico, (or) who are the children of people who were born in Mexico!"

Why wouldn't Obrador be delighted? Since Biden took office in January 2021, America has allowed some 5-6 million illegal entries across its southern border.

Obrador further congratulated the malleable Biden whom he sees as a kindred but complacent left-wing spirit: "You are the first president of the United States in a very long time that has not built even one meter of wall."

Translated that means Mexico is delighted the United States now cares little about the security of its border, the disappearance of which is wonderful news for Mexico.

Note that Mexico itself facilitates illegal transits across its southern border - as long as such Central American and other global migrants keep heading northward into the United States.

But when or if they pause, try to stay in Mexico, commit crimes, or expect Mexican social services, then almost immediately Mexico City sends thousands of troops to close its border with Guatemala, deports the illegal crossers, and revives talk of building a border wall of its own.

Biden has demolished America's southern border. His illegal nullification of U.S. immigration law is music to Obrador's ears.

But it is a nightmare to Americans who poll overwhelming disapproval of the subversion of their border security. They are exhausted by the influx of death-dealing drugs. And they are furious over the hundreds of billions of dollars diverted from their strapped social services to attend to the needs of foreign nationals who have broken their laws.

 

Mexicans Tend To Be Very Polite And Wouldn't Likely Say How They Really Feel

mexiconewsdaily  |  Overall, the magazine highlighted that, in a year characterized by economic struggles worldwide, some previously weak performers – such as Mediterranean countries – had proven surprisingly resilient in the face of geopolitical uncertainty and global supply shocks.

President López Obrador highlighted the result at his Wednesday morning press conference, boasting that Mexico had come out ahead of Canada, Japan, France, Italy, Belgium, Switzerland, Britain and even the United States.

“We’re doing well,” he said. “2023 will be better, much better, because we already have the momentum, and in politics momentum counts for a lot… Mexico is on the list of countries with the most advantages to invest.”

Both AMLO and his supporters on social media took the opportunity to hit back at The Economist for past statements critical of the president, including a May 2021 cover story that described AMLO as a “false messiah” who “pursues ruinous policies by improper means.”

“[And now] we are in sixth place in the world in economic performance,” the president said, emphasizing that The Economist “is not sympathetic to us.”

Fact-checkers were quick to point out that The Economist’s list does not include all the countries in the world, but only 34 of the 38 countries that make up the Organization for Economic Cooperation and Development (OECD).

Furthermore, Mexico’s continued strong performance is far from guaranteed. The most recent figures from the national statistics agency (INEGI) show that Mexico’s economic growth stagnated towards the end of 2022, with the Bank of Mexico now forecasting 2.9% growth across the whole year. Growth predictions for 2023 have been revised downwards several times, with one recent analysis forecasting 1.1%.

Under AMLO's People Centric Leadership - Mexico Has Become An Economic Success Story

nakedcapitalism |  But you are unlikely to hear much about Mexico’s unconventional economic success story in the mainstream media, whether in Mexico, the US, Europe or other parts of Latin America. After all, it might encourage others to follow suit.

Over the past four years, the mainstream media has consistently derided or attacked the AMLO government’s reform agenda, including its promotion of energy security, its rewriting of the rules for outsourcing and its nationalization of lithium. Even today, most MSM coverage attributes the lion’s share of Mexico’s economic success in 2022 to “external factors”, such as increased consumer demand and investment from the US.

Every time AMLO has tried to pursue policies that generally favor Mexico’s broader economy, dire warnings erupt that investors, both domestic and foreign, will stampede for the exits. A case in point: one of AMLO’s first acts in government was to cancel a $13-billion airport for the capital that was almost one-third finished, around $5 billion over budget, mired in allegations of corruption and posed serious environmental downsides. In effect, he took his presidential predecessor Enrique Peña Nieto’s legacy infrastructure project and ripped it up, for a slew of good reasons. And in doing so, he sent a clear signal to Mexico’s business elite that the time for “business as usual” was over.

But he also made sure that the investors holding the bonds that had financed the unfinished project were paid in due course. And contrary to what many economists, bankers and media pundits had warned, investors did not rush for the exits.

Nor was there a mad stampede when the AMLO government began strong-arming domestic and global corporations into finally settling their decades-long tax debts with the Mexican state. Until AMLO’s arrival, no government had even bothered to try. Coca-Cola bottler Femsa, and brewer Grupo Modelo, a division of the world’s largest brewer Anheuser-Busch InBev, paid hundreds of millions of dollars in current taxes and back taxes. So too did Walmart and a host of other companies.

As a result, the government was able to raise more tax funds in 2020 than in 2019, without raising taxes on the middle classes. Again, no rush to the exits, though some companies, such as Canadian mining giant First Majestic Silver Corp, are still refusing to pay up.

In fact, Mexico is fast becoming a magnet for foreign investment, as corporations, particularly from the US, shift their focus from China to a production base that is similarly cheap but closer to home. In the first three quarters of 2022 Mexico received record levels of foreign direct investment, much of it from the US. According to research by the McKinsey Global Institute, American investors poured more money into Mexico than into China last year. As the NYT kindly pointed out, for American companies moving business to Mexico location is the main driver:

Shipping a container full of goods to the United States from China generally requires a month — a time frame that doubled and tripled during the worst disruptions of the pandemic. Yet factories in Mexico and retailers in the United States can be bridged within two weeks.

A coterie of Mexican business lobbies have even suggested that Mexico could become a vast investment hub for the whole of the American continent. If this happens, the biggest beneficiaries, of course, will be transnational corporations, mainly from the US. For Mexico, it will mean even closer integration with the US economy, which already accounts for over 85% of Mexican exports.

Just how much economic policy independence future Mexican governments will have under such an arrangement remains to be seen, though the answer is likely to be “not much”. The US and Canada are already locked in a trade dispute with Mexico over AMLO’s energy reforms. It also means that wherever the US economy goes — and signs are that it is heading toward a recession — Mexico will quickly follow. And what was this year a blessing could quickly become a curse.

Forcing Mexican Compliance In An Era Of Changing GeoPolitics

mexiconewsdaily  |  Energy, immigration and trade will be the key issues under discussion at the North American Leaders Summit (NALS) held in Mexico City in January, according to an agenda presented by Mexican Foreign Minister Marcelo Ebrard.

Mexico will host the tenth edition of the summit between the leaders of Mexico, Canada and the United States — colloquially known as the “Tres Amigos” summit — at the National Palace from Jan. 9 to 11. U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau will join President López Obrador to advance shared priorities among their three countries.

“The three nations will seek to continue the process of regional integration on the principles of respect, sovereignty and cooperation in good faith for mutual benefit, that is the objective,” Ebrard said, while presenting the agenda at AMLO’s morning press conference on Tuesday.

The summit will open with a bilateral meeting between AMLO and Biden on Jan. 9. This will focus on strengthening bilateral trade relations, accelerating border infrastructure projects, and enhancing cooperation on issues such as labor mobility, security, education and climate change.

The migration crisis on the U.S.-Mexico border will likely be a key shaper of the discussions, as U.S. courts battle over the future of Title 42, the pandemic-era legislation that allows undocumented migrants to be immediately expelled to Mexico.

Ebrard explained that another key topic would be the Sonora Plan — Mexico’s proposal for the U.S. to help finance renewable energy infrastructure in the lithium hub of Sonora. Energy policy has been a recent point of tension between the three countries, with the U.S. and Canada accusing Mexico of unfairly favoring state-owned companies over foreign clean energy suppliers.

AMLO’s meeting with Biden will be followed by a trilateral summit on Jan. 10, and a bilateral discussion between AMLO and Trudeau on Jan. 11 focused on government strategy towards Indigenous and historically marginalized communities.

The trilateral meeting will seek to tackle six issue areas: diversity and equality; environment; trade competitiveness; migration; health; and common security. Mexico also intends to use the summit to propose a plan for tackling worsening poverty and inequality in the Americas, called the Alliance for the Prosperity of American Peoples.

“The central objective [of the alliance] will be to achieve a more egalitarian distribution of resources in the Americas based on the strengthening of trade relations … to maintain North America as the main economic power at the global level, which would allow establishing new ties with the rest of the continent,” Ebrard said.

The tenth NALS comes one year after the three nations relaunched the summit in November 2021, after a hiatus of five years. The ninth NALS, held in Washington D.C., focused on addressing the impacts of the coronavirus pandemic and improving supply chain resilience. The latter issue is likely to be still more relevant this year, in light of the supply shocks created by the war in Ukraine.

 

Nice Peso You've Got There - Be A Shame If Something Happened To It....,

Reuters  |   Concerns about a U.S. recession and a trade spat Mexico is embroiled in with the United States and Canada over Lopez Obrador's energy policy, which critics call nationalist, muddy the outlook for the peso.

"The perception of risk could rise due to the consultations in the framework of the USMCA (trade deal), which could lead to the imposition of measures against Mexico," said Banco Base.

Traders at the Chicago Mercantile Exchange, considered a bellwether of market sentiment, have started to bet the peso will begin depreciating.

Mexico's peso, which is ending 2022 with one of its strongest performances in a decade, could have its gains wiped out in 2023 after an expected end to the Bank of Mexico's rate hikes cycle and a possible recession in top trade partner the United States.

The peso last month clawed its way back to pre-pandemic levels and has appreciated over 5% versus the U.S. dollar in 2022, making it one of the best-performing global currencies alongside Brazil's real .

Houstonchronicle  |  Just weeks before President Joe Biden’s planned visit to Mexico, talks on the neighbors’ biggest trade dispute have stalled due to the departures of negotiators from the Latin American nation’s side and its reluctance to make concessions, according to people familiar with the matter.

The two sides have struggled to make headway on the energy-policy spat after Tatiana Clouthier, the economy minister at the start of the dispute in July, resigned in October, said the people, who asked not to be identified because the discussions are private. The dismissal of her trade deputy and more than a dozen senior staff also hindered progress, they said. 

Divisions have affected the Mexican team, with Energy Minister Rocio Nahle and Manuel Bartlett, the head of the electric utility, refusing for months to provide the nation’s trade negotiators with key information needed to address U.S. concerns, the people said. 

President Andres Manuel Lopez Obrador also has been unwilling to push for major changes in the nationalist energy policy at the heart of the U.S. complaint, the people said.  

A spokesperson for the Mexican economy ministry didn’t immediately respond to a request for comment. A spokesperson for the White House National Security Council acknowledged the request but didn’t immediately respond. The U.S. Trade Representative’s press office declined to immediately respond.

The two sides and Canada — which has some of the same concerns as the U.S. — are working to address the conflict before Biden visits Mexico next month, but American negotiators have little expectation for advances in that period, the people said.

Lopez Obrador’s policy privileges Mexican state-owned oil producer Petroleos Mexicanos and the electricity provider known as CFE. The U.S. says this violates the U.S.-Mexico-Canada Agreement on trade, which went into force in 2020 to replace the two-decade-old NAFTA pact. Canada filed a similar request for talks over Mexico’s electricity policy.

Lopez Obrador denies that his policies violate the pact, saying that the U.S. must respect Mexico’s sovereignty.

Meanwhile, AMLO Being A Bro - Fitna Hook Us Up With Some Gas And Gasoline

whitehouse |   Yes, I fully coincide with what you have proposed, President Biden.  And I could summarize everything we’ve been saying in five basic items of cooperation.

Number one, since the energy crisis started, Mexico has used 72 percent of its crude and fuel oil exports to United States refineries — 800,000 barrels a day.

Therefore, we decided that while we’re waiting for prices of gasoline to go down in the United States — and I hope that Congress approves or passes your proposal, Mr. President —

PRESIDENT BIDEN:  It has gone down for 30 days in a row.  (Laughs.)

PRESIDENT LÓPEZ OBRADOR:  (As interpreted.)  — of lowering — lowering prices, yes.  That’s it.

In the meantime, while we’re waiting for prices to go down, we have decided that it was necessary for us to allow Americans who live close to the borderline so that they could go and get their gasoline on the Mexican side at lower prices.

And right now, a lot of the drivers — a lot of the Americans — are going to Mexico, to the Mexican border, to get their gasoline.

However, we could increase our inventories immediately.  We are committed to guaranteeing twice as much supply of fuel.  That would be considerable support. 

Right now, a gallon of regular costs $4.78 average on this side of the border.  And in our territory, $3.12. 

Let me clarify something, and I also want to take advantage of this opportunity to thank you, Mr. President.  Most of this gasoline, we are producing it in the Pemex refinery that you allowed us to buy in Deer Park, Texas.

Two, we are putting at the disposal — or sending at the disposal of your administration over 1,000 kilometers of gas pipelines throughout the southern border with Mexico to transport gas from Texas to New Mexico, Arizona, and California for a volume that can generate up to 750 megawatts of electric energy and supply about 3 million people.

Three, even though the USMCA has made progress for the elimination of tariffs, there are still some others that could be immediately suspended.  And we could do the same with some regulations, regulatory measures, and tedious procedures or red tape in terms of trade related to foodstuffs and other products so that we can lower prices for consumers in both our countries, always being very careful in the protection of health and the environment.

Four, starting a private-public investment plan between our two countries to produce all those goods that will be strengthening our markets so that we can avoid having importations from other regions or continents.

In our country, we shall continue producing oil throughout the energy transition.  With the U.S. investors, we are going to be establishing gas-liquefying plants, fertilizer plants, and we shall continue promoting the creation of solar energy parks in the state of Sonora and other border states as well.

And we’re going to accomplish this with the support of thermal electric plants and also through transmission lines to produce energy in the domestic market, as well as for exports, to neighboring states in the American union, as for instance, Texas, New Mexico, Arizona, and California.  

It’s also important to mention that, two months ago, we took the sovereign decision of nationalizing lithium in Mexico.  This is a fundamental mineral, a fundamental input to advance in our purpose not to depend on fossil fuels.  And this will be available for the technological modernization of the automotive industry among our great countries — the countries of the USMCA. 

Five, orderly migration flow and allowing arrival in the United States of workers, technicians, and professionals of different disciplines.  I’m talking about Mexicans and Central Americans with temporary work visas to ensure not paralyzing the economy because of the lack of labor force. 

The purpose of this plan would be to support and to have the right labor force that will be demanded by the plan you proposed and that was passed by Congress of using $1 trillion for the construction of infrastructure works. 

And it’s also indispensable that I say this in a very sincere fashion in the most respectful manner: It is indispensable for us to regularize and give certainty to migrants that have for years lived and worked in a very honest manner, and who are also contributing to the development of this great nation. 

I know that your adversaries — the conservatives — are going to be screaming all over the place, even to Heaven.  They’re going to be yelling at Heaven.  But without a daring, a bold program of development and wellbeing, it will not be possible to solve problems.  It will not be possible to get the people’s support. 

In the face of this crisis, the way out is not through conservatism.  The way out is through transformation.  We have to be bold in our actions.  Transform not maintain the status quo. 

On our part, we’re acting in good faith, with all transparency, because there shouldn’t be selfishness between countries, peoples that are neighbors and friends.  On the other hand, integration does not signify hegemony or subjugation. 

And, President Biden, we trust you because you respect our sovereignty.  We are willing to continue working with you for the benefit of our peoples.  Count with our support — count on our support and solidarity always. 

Long live the United States.  Viva México lindo y querido.  Long live Mexico — dear Mexico, loved and beautiful Mexico.  Viva México.