12 Sep 2019
As the dispute between the U.S. and China continues, with tariffs being imposed on imported goods, the global economy is being on the receiving end. However, the latest analysis is showing that Mexico may come out on top in the trade war.
U.S. President Donald Trump’s tweet on Wednesday gave hope to investors as he confirmed that the tariffs on 250 billion worth of Chinese imported goods, that were meant to be put into effect on October 1st, will be delayed until October 15th. Following his tweet, Asian shares saw gains in the afternoon. Trump described the delaying of the tariffs as ‘a gesture of good will,’ however, the trade war is not hinting that an agreement will be reached soon.
John Murphy, senior vice president for international policy at the U.S. Chamber of Commerce, stated that Mexico has the potential to benefit from the current dispute, as it continues to develop as a manufacturing hub ‘with free-trade agreements that offer guaranteed access to more than 50 foreign countries.’ He explained, ‘Mexico has a number of key advantages in comparison to other cheaper labour options, predominantly in the Southeast Asian region, as a manufacturing and export platform,’ CNBC reports.
Previous reports had identified Vietnam as one to benefit from the ongoing trade dispute, as several companies sought a move away from China. A report by Nomura highlighted that 6 new factories were opened in Mexico between April 2018 and August 201
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