Mexico places sanctions on US exports

[ironhorsedriver]

A long-simmering trade dispute boiled over into sanctions on Monday after Mexico said it would raise tariffs on $2.4bn of US exports in retaliation for ending a pilot programme to allow Mexican trucks on American roads.

The announcement marks one of the first big tests for trade policy under President Barack Obama, who has sought to tread a fine line between assuaging his domestic constituencies and upholding the US’s international obligations.

Mexico said it would increase tariffs on 90 industrial and agricultural goods, likely to include politically sensitive farm products, after Congress last week killed a pilot programme allowing a limited number of Mexican trucks on American highways. Mexico obtained a judicial ruling in 2001 under the North American Free Trade Agreement (Nafta) allowing it to impose such sanctions, but has held off since the US introduced the pilot scheme.

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Of course, we all know Obama will appease him. It's a shame he doesn't turn around and put sanctions on Mexican exports, say, PEOPLE.

[Baruch Menachem]

This is a very bad move all over the place.   The trucks are supposed to be permitted under the NAFTA rules, and he is breaking the rules here.    If the Mexicans can bend Obama over this(and I think they can, the man seems to be the Orgami president he folds so quick) then the rest of the world will  right behind them.

[Hawkgirl]

  this is just the beginning.  If a pissant country like Mexico can get away with this, imagine what countries with bigger balls will try.

[Bluesuiter-Retired]

obama and the dems brought this down upon us with their PROTECTIONIST provision in that NON-STIMULUS bill.

The only reason that provision is in the bill in the first place is because the dems cannot afford to antagonize the unions.

[Baruch Menachem]

In a few weeks, the unions will be the least of their worries.

[RightCoast]

barack caves in: 3..2..