NEWS

Trade conflicts and difficulties in 2021, the year of recovery

Wednesday, March 24, 2021

As the forecasts said, the year 2021 is being a period of recovery for economies worldwide, foreign
trade operations are beginning to regain strength and the usual volume in previous years.
New opportunities and challenges have arisen in this return of the usual activities in international
trade, with this not everything has been positive. These abrupt changes in international markets
have caused 2021 to have the expected recovery, but hand in hand with commercial, logistical and
political conflicts that were to be expected due to the search for economic stability of world powers.

China vs United States

With the entry of President Biden to power, it is taken for granted that the commercial relationship
will turn positive between the two countries. Even so, the legacy of a trade war has left crossed
tariffs and trade barriers with an unfavorable balance for the United States. That is why the
friendliest initiatives of President Biden “Buy American” where it seeks to promote the supply made
in the United States without being so aggressive with the Asian markets.

Trade disagreements between the EU and the United States

After a year 2020 where the Chinese market penetrated the European Union and where the United
States weakened its commercial relationship with the same economic bloc. 2021 is a challenge for
the United States that seeks to mend the trade conflicts that exist between the two economic blocs
that were more evident in 2020 together with the tariffs that prolonged a trade dispute of almost
two decades originated in subsidies for its aeronautical giants.

Mexico and the United States

1. Tariff conflicts
Despite having a reformed and adequate free trade agreement for the current market between
North America and thus avoiding commercial conflicts; The barriers imposed by the United States
towards Mexico in different sectors such as sugar and specific products such as blueberries, among
others, have not been stopped.

2. Instability in border operations
In land transportation, there has also been a shortage of equipment to carry out international
crossings due to the instability of import and export movements between Mexico and the United
States. This has led to the lack of operation of Mexican exports, transport companies having to make
crossings with empty boxes, which generated losses, in addition to delays in import shipments, thus
generating losses and instability for the supply chain of Mexican companies

Instability in maritime rates in Mexico and China.

International logistics is a sector that has improved a lot thanks to the reactivation of the economy,
however the difference in reactivation between the different industries has affected the number of
exports and imports between China and Mexico, which has directly affected availability. of empty
containers, as well as an increase in the import tariffs of the main maritime ports of China to Mexico,
which reflects an increase in tariffs of 50%; generating delays and more expensive imports to
Mexico.