Mexico Has A "Contingency Plan" If Trump Wins

Mexico is preparing for the worst.

If Donald Trump becomes president of the United States, Mexican authorities are creating a contingency plan that would face next Wednesday, to what they have called a "hurricane" for the economy of Mexico.


"If the adverse scenario occurs, it is possible that Mexican authorities to respond in some way," said the governor of the Bank of Mexico, Agustin Carstens, the Mexican broadcaster Milenio TV.

"It's a contingency plan which we are talking to the finance minister," the head of the central bank.

No details have been announced this plan, but it is clear that Trump is seen as a major threat to Mexico.





It has threatened to impose a 35% tariff on goods manufactured by US companies in Mexico, which are then sold in the United States. Exports account for a third of Mexico's economy and almost all of them go to the United States.

Trump says will bring down NAFTA, the Free Trade Agreement between Canada, Mexico and the United States, if not renegotiated. And he wants to build a wall on the border between the US and Mexico that repeatedly says, you will be paid by Mexico. (Mexico's president denied that his country was to pay for it).

"It's a losing proposition," he told CNN Arturo Sarukhan, former Ambassador of Mexico in the United States.

"The only losers I are Americans and Mexicans," he said.

Trump negative rhetoric is already hurting the Mexican currency, the peso.

Has depreciated by 9% this year, partly due to the Trump effect. When polls show a rise magnate in the intention to vote, the weight has dropped.

The weakening currency is not bad news: it makes Mexico exports more affordable and attractive to foreign buyers, and when Mexicans send money to their loved ones, they get increasingly pesos.

Still, Mexico's economy is slowing for other reasons now. Low oil prices and cuts in public spending were the main reasons why Mexico recorded its worst quarter annual growth in two years.

And the peso devaluation is a sign that things would get worse if Trump wins on Tuesday. Analysts predict that if the Republican candidate wins, would be a major setback in weight, which deeply hurt the country's economy going through those difficulties.

Ending NAFTA or impose tariffs on cars Ford would not be good for the United States, trade experts said. According to the United States Chamber of Commerce, 6 million US jobs depend on trade with Mexico.

Mexican officials now bear the calm before a possible storm.

"We hope we do not have to use the contingency plan," said the governor of the Bank of Mexico, Milenio TV.