Driven into their Arms

MEXICO CITY/BERLIN (Own report) – The Mexican government is pushing to rapidly modernize its free trade agreement with the EU and has declared its “close affinity” to Germany, following US President Trump’s threats of massive reprisals by building a wall at the border and imposing punitive tariffs. Because of its extreme dependence on the USA, Mexico can only hold its ground by intensifying its relations with other countries, according to Mexican Foreign Minister Luis Videgaray. Mexico’s enticements are greeted with sympathy by German business circles. The majority of German firms active in Mexico had already decided on new investments and is planning to carry these out, despite expected disadvantages from the projected US trade policy. Experts assume that the US administration cannot afford excessive punitive tariffs or other exorbitant escalations. At an appearance last week in Mexico, Siemens CEO Joe Kaeser ostentatiously announced investments worth US $200 million and signed an agreement of intent with Mexico’s Minster of Economics for infrastructure and industrial projects with a possible volume of up to US $36 billion. Continue reading