Page 20 - OCEAN BLUE - SUMMER 2017

FROM THE CHAIRMAN

Translating Trump

W ith President Donald Trump now firmly planted in the
Oval Office, one would hope that some of the aggressive
campaign rhetoric between the United States and Mexico
would subside. Our ears are still ringing from some of the
outlandish and regrettable sound bites that have circled the media, offending
more than just Mexican citizens, but citizens from around the world who love
both countries.

As an economist and businessman with interests in Mexico and the United
States, the idea that Donald Trump’s presidency could single-handedly
destroy the relationship between the two countries doesn’t even register. The
interdependency between the two countries is too great and far too complex
to come undone under one president. Both countries have much too much to
gain from each other. Nonetheless, we can expect both presidents to placate their
supporters and posture before the media. That’s politics.

“Trump could actually be good for Mexico.
In fact, Mexico is already profiting in certain sectors.”

With the promise of building a wall and renegotiating NAFTA remaining at the
top of President Trump’s agenda, the one thing you’re unlikely to read in the
press is this: Trump could actually be good for Mexico. In fact, Mexico is already
profiting in certain sectors.
Take Oil, Gold and Silver
With the peso dropping to record lows against the US dollar, profits are soaring for
Mexican oil, gold and silver. Any labor-intensive industry – including agriculture
– that pays its workforce in pesos, but trades in US dollars, has benefited from
the Trump presidency. But it goes deeper than currency. Donald Trump is a wild
card, and the OPEC countries are afraid of him. OPEC’s recent agreement to
reduce production is a case in point, and one that has improved the bottom line
for Mexico.
Who’s Paying for the Wall and Who Isn’t
Whether a wall along the U.S.-Mexican border will prevent illegal immigration,
curtail drug trafficking, or diminish wildlife populations, only time will tell.
One thing is clear: Mexico won’t be paying for it. If President Trump imposes a
20% tariff on Mexican imports, then it will likely be American consumers who
foot the bill. The wall might even benefit Mexico. Carlos Slim, Mexico’s richest
person, was quick to point out that Trump will need “many, many Mexicans for
infrastructure jobs.”

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