Russia And Mexico Develop Closer Business Ties In Response To Trump's Tariff-Based Order
The article discusses the recent prospects for developing Russo-Mexican economic and financial relations amid Trump's shake-up of global trade.
Russia and Mexico are initiating serious economic networking through the first-ever Russia-Mexico Business Forum, set to take place in Mexico City on April 3, 2025. Coupled with Russia's invitation for Mexico to participate in its foreign exchange could strengthen commercial ties and diversify trade partners in response to US tariff-based trade tensions. The article discusses the recent prospects for developing Russo-Mexican economic and financial relations amid Trump's shake-up of global trade.
The first-ever Russia-Mexico Business Forum, set to take place in Mexico City on April 3, 2025, was organized by the Roscongress Foundation, with the support of the Trade Mission of the Russian Federation in Mexico and the National Chamber of the Transformation Industry (CANACINTRA), aiming to strengthen commercial ties between the two nations.
The forum is expected to bring together over 150 representatives from medium and large businesses, business associations, and government agencies. Mexico, being one of Russia's key Latin American partners, has shown a high level of interest in collaborating with Russian companies in various sectors, including medicine, mineral resource extraction, renewable energy, tourism, and more. The forum's agenda will cover trade and investment cooperation, high-tech industries (energy, digitalization, ICT, pharmaceuticals), science, and culture.
The timing of this forum is particularly significant given the recent trade tensions between the US and Mexico. The Trump administration's threats of imposing tariffs on Mexican goods have led to retaliatory measures and thus a strain on US-Mexico trade relations. President Trump announced 25% tariffs on goods from Mexico after they turned down a plane transporting migrants but then on February 3, Trump announced that he would pause said tariffs on Mexican imports for one month, following a discussion with his counterpart, President Sheinbaum where she agreed to deploy 10,000 Mexican soldiers to the northern border to appease the US.
Because of these pressures Mexico's decision to engage more deeply with Russia can be understood as a strategic move to diversify its trade partners and reduce its economic vulnerability to US policies. Russia, on the other hand, sees this as an opportunity to expand its economic influence in Latin America and to create new markets for its goods and services in the biggest Hispanic country in the world.
Fortification Of Financial Ties
Vladimir Putin invited Mexico to participate in Russia's foreign exchange and derivative market. This invitation was announced on February 2, 2025, by the Russian government including Mexico, along with Argentina, Cambodia, Laos, Nigeria, Tunisia, and Ethiopia, was authorized to participate in Russia's foreign exchange market and financial derivatives market. Russia's strategy is to expand its economic ties with friendly and neutral countries, Mexico among them win-win economic business opportunities reducing dependence on the US dollar and the euro.
The benefits of this partnership are expected to be mutual. For Mexico, Russia offers a market with significant potential for investment and trade. Russian companies, in turn, are looking to expand their presence in Latin America, and Mexico's strategic location and economic stability make it an attractive partner. The forum will also provide a platform for discussing practical aspects of business cooperation, including the challenges and opportunities in the current global economic landscape and it’s expected to lay the groundwork for future collaborations.
Former Mexican President Andrés Manuel López Obrador (AMLO) has consistently demonstrated a stance of neutrality and resistance to imposing anti-Russian sanctions despite international pressure. AMLO declared that Mexico would not take any economic retaliation against Russia for its actions in Ukraine, emphasizing Mexico's policy of maintaining good relations with all governments. AMLO had defended the participation of Russian soldiers in Mexico's Independence Day military parade, stating that all countries with which Mexico has diplomatic relations were invited.
The Russia-Mexico Business Forum and overall intensification of RIC-LAC relations are both a strategic response to the current trade environment and a long-term trend of the global transition towards multipolarity. As the US continues to impose tariffs on its trading partners, blackmailing them for free lunches more neutral countries like Mexico will be pushed into strengthening geoeconomic ties with Russia, India and China.