Tuesday, March 17, 2009

Did Obama And The Democrats Spark a Trade War With Mexico?

It looks like the United States may be on the brink of a Trade War with Mexico. The United States ended a pilot program that let some Mexican trucks transport goods in the United States. This violated an agreement we had with them, specifically NAFTA. In response to this Mexico announced an increase on tariffs to roughly 90 US products.

More at http://www3.signonsandiego.com/stories/2009/mar/16/lt-mexico-us-trucking-031609/?zIndex=67870.

Why shut down the program? It seems to come out of a combination of the protectionist wing of the Democratic party, and a pay back to Unions from Obama and the Democrats. While the intention might be noble, the effect will likely be job losses in America. The reasoning given was safety problems, but evidence does not support any safety issues.

There is still time to pull back before things being to escalate and before and real damage is done. It would be easy to, just comply with our agreement and let the Mexican trucks deliver the goods. They would then remove the new tariffs and we can all put this incident behind us.

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