To exert leverage in upcoming trade negotiations, the White House must be able to back up its promises to impose penalties on what is says is unfair trade. The power to limit auto exports to the U.S. would fit that bill.
By Matthew Bey
Mexican carmarkers recently guaranteed themselves access to the United States. Now their Brazilian counterparts are looking to emulate the feat in a search for their own export markets.
Mexico's burgeoning economy has enabled criminal elements to grow in symbiosis, utilizing the country's transport infrastructure to expand volume. But the tendrils of organized crime are now damaging the host.
Its vehicle manufacturers rely on exports, and the United States is by far their most important market. But satisfying White House trade demands won't be easy for Seoul.
The two have developed interconnected and mutually beneficial supply chains over the years, even as they remain embroiled in a political dispute. Now, Taiwan is trying to diversify away from the mainland as it faces threats of increasing instability, competition and government intrusion.
Facing pressure to open up its auto market to foreign competition -- as automakers in Asia, Europe and North America look for new export destinations under the threat of higher U.S. import fees -- Beijing is working to reduce overcapacity and strengthen local brands.
Beijing has not shown any sign of backing down as the White House increases economic pressure designed to force China to restructure its economy.
The South American trade bloc, known for its big import fees, has been slowly moving to open up its automotive sector.
The White House's fees on imported vehicles could push up car prices across the board and cost hundreds of thousands of U.S. jobs.
The new Ethiopian prime minister has moved boldly to bring together opposing forces at home and to reconcile with neighboring Eritrea. But he also is following a necessary path for his country's success.
