Friday, June 14, 2013

Global Impact: Chinese, Mexican Officials Seal Tequila Deal, A Message for the US

According to EFE, The Mexican and Chinese governments have formed a group tasked with speeding up authorization for exports of Mexican tequila to the Asian nation.

The creation of the tequila working group was a direct result of Agriculture Secretary Enrique Martínez y Martínez’s recent visit to China.

It added that even as that process is being worked through, the Chinese government has agreed to allow the first shipments of 100% agave tequila to enter the country.

Moreover, Chinese authorities responsible for quality supervision, inspection and quarantine reassured the Mexican delegation at a meeting that four Mexican plants were authorized to export pork to China and that that the volume “should increase soon,” Martinez’s office reported.

The Agricultural Ministry also said that progress was made during the meeting on procedures for obtaining export certificates for Mexican products such as mangos, berries, beef and nuts.

COMMENT: It should also be noted that the trade arrangements were formally culminated last week when Mexican President Enrique Peña Nieto and Chinese counterpart Xi Jinping met in Mexico City.

At the moment, agricultural trade with China from México is estimated at US$200 million. This does not include other industries. 

Aggressive and increasing bi-lateral trade between China and México should be a wake-up call for the US, as Washington continues to be mired in multiple scandals, foreign wars, transnational terrorism, citizens losing trust in their government, cyber surveillance of citizens and presidential missteps.

Additionally, large corporations and small businesses alike are just sitting on billions of dollars, not knowing what the federal government will do next in terms of intensified regulation and potential tax increase.

Unfortunately, while Washington is preoccupied with distractions, China has two things the US does not have:

1. A focused plan on economic development; and

2. Unlimited access to cash.

As for the US, President Obama appears to be an absentee landlord whose only perceived goals seem to be in raising money, playing golf and vacationing, when he actually should be governing. 

The fact that the US economy has been flat throughout 2008-2013 should be a subtle clue that things are not going well at 1600 Pennsylvania Avenue.