Mexico v Argentina Trade Relations

article from June 29, 2012

By Jamie Douglas

First off, I would like to give my sincere thanks to the many of you that sent me good wishes after my accident a few weeks ago. I was really overwhelmed by how many of you dear readers sent me their emotional support. Thank you very much; Mahalo nui loa; Merçi beaucoup; Grazie mille; Vielen herzlichen dank; Domo arigato; y Muchas gracias a todo mis lectores!

Now to the lead story: Back in 2002, Mexico and the Mercosur nations signed bilateral trade accords governing the importation and exportation of automobiles and auto parts. As has become the norm with Argentina and to a large degree Brazil, treaties are made to be broken when they are not to their advantage anymore, and such is the case here.

Cristina Fernández de Kirchner recently announced that the treaty between the two nations would be suspended. Figures released by Mexico’s economic ministry show that in 2011, exports of automobiles and auto parts reached almost a billion US dollars, while Mexico imported almost US$300 million in automobiles and parts from Argentina.

That is a more-than 3:1 ratio in favor of Mexico. On the surface, it seems very unbalanced. But when you consider what an economic giant Mexico has become, with the help of the North American Free Trade agreement, it is a small wonder that the imbalance is not greater. Manufacturers from the United States and the rest of the world have set up shop in Mexico to take advantage of the lower labor costs and easy access to the North American market.

Mexico’s captains of industry, of course, realized that excess production could be marketed to the rest of Latin America, increasing employment as well as driving up the GNP. They sent trade representatives everywhere, from Guatemala to Argentina, as well as to the European Union, Japan and China, and they came back with very lucrative trade agreements that boosted Mexico’s economy and provided many new, good-paying jobs for the Aztec nation.

At the same time, Argentina and Brazil built up their automotive industries, exporting what they could, building up their own foreign reserves, creating jobs and making the politicians look good.

But that was then, and this is now. A nationalistic imbecile is running Argentina, continuing in the tradition of going from economic disaster to economic disaster, something I refer to as “Argentina’s circular history.” It runs in cycles of about 10 years from complete meltdown to utter chaos, and we are nearing the latter.

Cristina’s meddling with Mexico has awakened the fighting spirit of the Aztecs. They are not taking her lunacy lying down; in fact, they are getting ready (along with many other nations) to take this lunacy to the World Trade Organization.

Now, to add to the chorus of nations reaming Argentina for their protectionist measures, the USA has demanded that Argentina immediately put an end to their illegal import- and export-licensing regulations, which have turned major multinational corporations such as BMW into exporters of rice in order to expatriate their income.

Already, the USA and others have filed complaints with the WTO in Geneva. US attaché Rachel Bae took a much harder stance against Argentina, which already is the subject of several lawsuits filed by the European Union over the completely outrageous steps the administration of Empress Cristina Fernández has taken to freeze imports wherever she can.

Cry for Argentina! Once a nation of such great wealth and promise, it has been subject to incompetent and corrupt leaders. Why is it that a nation that has such an abundance of wealth and natural resources has been exploited by its own leadership for over 201 years? Argentineans, as a whole, are a wonderful and lively people; but they have fallen for the bullshit being dished out by their leadership for all that time. And the beat goes on!

Jamie Douglas

Safely across the Río de la Plata, in the land of the lovely Tannat wine

I encourage you to write me at cruzansailor [at] gmail [dot] com with any questions or suggestions you may have. Disclaimer: I am not in any travel-related business. My advice is based on my own experiences and is free of charge (Donations welcome). It is always my pleasure to act as a beneficial counselor to those who are seekers of the next adventure.