|It's A Big Market|
And We Need The Business
(from Colombia Post)
This broadly tracks the overall growth of American sales to Mexico, which jumped from $46 billion to $230 billion during the same period. But that's where South Dakota's experience parts company with the United States as a whole. Where our national macro-experience has resulted in the much-derided but insufficiently understood (It's too simplistic to call them "bad" despite what politicians say.) trade deficit of $63 billion, South Dakota's experience with Mexican trade has resulted in a huge surplus. The U.S. Census Bureau calculates that South Dakota imports (in 2015) just $70 million of goods from Mexico, which gives us a state-surplus of well over $300 million. This sounds nice but isn't particularly reflective of anything other than the fact that we sell more to
Bad Way To Relate
And that's where the more insidious problem resides. If Mexico responds to our protective trade impulses with retaliatory trade measures of their own, we're off and running to a trade war, which could easily result in a serious slowdown of South Dakota's agricultural sales to Mexico. In the meantime, tariffed, goods that we buy from Mexico will get more expensive. Of such dynamics are international financial crises bred. That anybody thinks a scenario like that will get American workers back to the production lines because we'll all be "buying American" again is a poor reflection on our collective grasp of history.