Mexican Trade Tariffs Continue - CEO's tell Government 26,000 Jobs at Risk

As you may recall, back in March Congress passed the Omnibus Budget Bill for 2009. This included an item that eliminated a pilot NAFTA program (prior post).

Over 150 companies which include GE, Walmart and the American Farm Bureau issued a joint letter today urging Washington to quickly end this dispute. They state that it is putting about 26,000 jobs at risk.

Here's another post which is more specific to the Northwest and the impact on it's agricultural exports.

First Major Shot Fired in Trade War

Apparently, the recently passed 2009 Omnibus Budget/Spending bill included a provision that killed a program that was implemented as part of the 1995 NAFTA (North American Free Trade Agreement). I wonder if anyone even knew it was there. (grin)

So, today Mexico announced that it will retaliate (which it has a right to do so) and increase duties on 90 US products which we export to them (totaling over $2 billion).

Some folks have had concerns about the program, centered around the safety of the Mexican trucking companies. As a result, the program has not had heavy participation.

But I think the posting from the Club For Growth sums it up best... "This didn't have to happen".

Club for Growth post (with link to Wall Street Journa)l

Reuters article