U.S., Mexico in Simmering Trade War

Marketplace
March 25, 2009

Transcript: 

Renita Jablonski: Secretary of State Hillary Clinton is visiting Mexico today for two days of talks. As Dan Grech reports from the Americas Desk at WLRN, she's walking into a simmering trade war.

Dan Grech: The U.S. promised back in 1995 to allow Mexican trucks to haul cargo into the U.S. In 2007, the Bush administration launched a pilot program allowing 100 Mexican trucks into the country. But earlier this month, the Obama administration ended that program.

Economist Sidney Weintraub is with the Center for Strategic and International Studies:

Sidney Weintraub: The U.S. consciously and deliberately violated an agreement it signed.

In response, Mexico imposed tariffs last week on 90 U.S. products, including cherries, dog food, and toilet paper. The tariff affects more than $2 billion in trade, and hits exporters in 40 states.

Eric Farnsworth is with the Council of the Americas:

Eric Farnsworth: The Mexicans have made very clear that the next move has to be from the United States, because it's the United States that didn't implement the provisions of Nafta like we said we would.

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