One of the first world leaders to congratulate President-elect Donald was Mexico’s President Enrique Peña Nieto. Now, Peña Nieto is doing the smart thing in reaching out to Trump to negotiate the construction of a wall. He would rather build a wall than create a trade war. According to Breitbart:
Mexico is very worried that President Trump will actually follow through on his promises to conduct massive deportations, to apply new trade tariffs and to demand renegotiation of the North American Free Trade Agreement. Pena Nieto’s invitation for Trump to make an official Mexican visit in August now seems brilliant.
The Mexican government promised to intervene in currency markets to prevent any disruptive fall in the peso from the U.S. elections. But Mexico’s financial markets have been hammered since Election Day, with their peso currency crashing by 13 percent. …
Mexico has huge risk in a trade war with President Donald Trump and the United States. About 90 percent of U.S.-based fortune 500 companies now have made substantial investments in Mexico. According to the U.S. Bureau of Economic Analysis’ report from 2012, U.S. multinational enterprises employed 1,106,700 people in Mexico, but Mexican companies only employ 68,800 in the United States.
[…] Mexico is America’s second-largest export market, with $236 billion, or 15.7 percent, of all U.S. exports in 2015. That is up 468 percent since NAFTA was signed in 1993.
But NAFTA has been so remarkably successful that Mexico, with $400 billion in exports, is now the 12th largest export economy in the world. That has only been possible because 80 percent of Mexico’s exports go to the United States. …
This is something that globalists will never tell you, that nations are willing to negotiate if given another choice.