Wednesday, April 11, 2007

Mexico to discuss trade agreement with Japan

Source: La Jornada (Spanish only)

Mexico’s Secretary of the Economy, Eduardo Sojo, traveled to Japan this week to discuss the bilateral trade agreement between the two nations. Specifically, Sojo will be addressing reported trade deficits on the Mexican side.

While Mexican officials have lauded the fact that trade between the two countries has grown 41% in the two years since the agreement went into effect, there is concern about the current trade deficit, which amounts to $12 billion.

Trade between Mexico and Japan is almost entirely focused on two sectors: automotive and agricultural products. In Japan, Secretary Sojo will seek to attract investments in Mexico as well as increase exports from Mexico of agricultural and food products.

Japan is Mexico’s fourth largest trading partner, after the United States, European Union, and China.

For discussion:

What do you think is the cause of Mexico’s trade deficit with Japan?

Do you think Secretary Sojo’s reported solution will alleviate the problem?

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