National

Mexico’s Reaction To Trump’s Deal With Carrier


MEXICO–(ENEWSPF)–December 1, 2016

By hsterndude

TO GO WITH AFP STORY BY SIMON LEPLATRE .A picture taken on November 6, 2014  shows the logo of the heating, air conditioning and ventilation Carrier factory at the entrance in Montluel, eastern France. Faced with the new European standard for gas cooling, the US global leader in air conditioning, focuses on innovation in its Montluel laboratory.AFP PHOTO / JEAN-PHILIPPE KSIAZEK        (Photo credit should read JEAN-PHILIPPE KSIAZEK/AFP/Getty Images)

Trump and Carrier Works Out a Deal

Air-conditioner manufacturer Carrier’s decision not to close a Midwest plant and move the operation to Mexico has lifted the spirits of American workers as well as President-elect Trump’s approval rating. Trump convinced the company to keep its Indiana operation running as part of his Make America Great Again effort.

Nuevo León governor Jaime Rodríguez talked about the situation on a radio program and said there was more to the world than the United States. He acknowledged the relationship with the U.S. was important, but Mexico was not dependent on it, and if anything, America should depend on Mexico. Rodríguez also said the Carrier plant, which was due to move to Nuevo León in the near future, was just one of many deals Mexico has struck with outside countries, namely from Europe and Asia plants.

According to Rodríguez, Trump needs to step carefully when it comes to Mexico, which is America’s biggest trading partner. Blocking Mexico would bring China closer to the U.S. market, effectively negating the nationalist stance of his campaign. In addition, the American economy would be negatively affected by a lack of investment in Mexico plant operations. A large number of items are produced in U.S. factories south of the border, using components built in the United States. Mexico’s export of those products creates more jobs for American workers. While the countries are not completely dependent on one another, the economies of both nations are deeply intertwined

Concepción Landa, a representative from Nuevo León, said the upcoming Trump presidency is a critical situation, but it presents an opportunity to diversify. He said it is making Mexicans less dependent on the United States and more open to trade with other nations.

Carrier is only one example of an American company looking to Mexico for manufacturing. Trump being president does not change the fact that Mexico is attractive for many reasons, especially when the decline of the peso is factored in. The state of Indiana created a $700,000 tax break to keep Carrier from leaving, a feat that would have been difficult to accomplish without Mike Pence, the current Vice President-elect, being the governor.

Since he has yet to take office, it is too soon to determine whether Trump will realize that his approach to manufacturing and jobs is questionable. When Rodríguez was asked on Mexican radio if Trump is disrupting affairs in Nuevo León, he laughed and said no. He then added that the state will be fine without the Carrier deal.

Source: http://dailykos.com


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