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