Mexico's economy secretary to meet Trump officials in US in 'first conversation' on trade

Mexico City, Feb 19 (AP) Mexico's Economy Secretary Marcelo Ebrard said on Tuesday that he will meet with Trump administration officials in Washington on Thursday in what he called "the first conversation" in a series of negotiations between the two countries.

The meeting comes at a fragile moment for the two neighbours, whose bilateral trade exceeded USD 800 billion last year. US President Donald Trump has threatened to impose 25 per cent tariffs on all imports from Mexico -- though so far limited them to steel and aluminium -- and signed an executive order to rename the Gulf of Mexico as the Gulf of America.

"In our first meeting, we will clarify the proposals put forth by the US, and what the new administration aims to achieve," Ebrard told reporters. "Then we'll put Mexico's arguments on the table, particularly those concerning the (economic) integration between the two nations." Ebrard said he would meet with Secretary of Commerce Howard Lutnick and a number of Trump officials in a conversation that would focus on the steel and aluminium tariffs, as well as the importance of the country's bilateral trade relationship. Ebrard added that he hoped to make a range of other proposals to "improve" the existing trade relationship.

Meanwhile, Trump's wider tariff threat looms, something analysts say could trigger a recession in Mexico. The imposition of broader tariffs would likely start a trade war, with Mexico President Claudia Sheinbaum promising reciprocal tariffs, both of which would result in price increases for American consumers.

While Mexico has sought to diversify its trade relationships, economists say decades of free trade and geographic proximity limit its ability to make significant changes in the short term.

Ebrard on Tuesday seemed determined to avoid an escalation.

"Our response will never be rancour or conflict, but rather a continued effort to move forward," Ebrard said. (AP) SZM

Source: PTI