Wall's threats do not stop remittances
Listen this article
Despite the Trump government's anti-immigration rhetoric, 94.1% of remittances to Mexico come from the United States
On February 5, Donald Trump insisted on one of his tweets in what for him is the need for a wall that separates the United States from Mexico: "Tremendous numbers of people are coming through Mexico with the hope of flooding our southern border. We have sent additional military. We will build a human wall if necessary. If we had a real wall, this would not happen! " This is just the last assertion of the US president in a series of statements that are part of an anti-immigration discourse he has had since his presidential campaign.
Leer en español: En medio del gobierno Trump, remesas en México alcanzan pico histórico
Despite this, the Bank of Mexico reported on February the 1st that the shipment of remittances to Mexico from the United States reached a new historic peak. According to the report of the Bank of Mexico, during 2018, there was remittance income of US $ 33,480 million to Mexico, of which 94.1% came from the United States, according to the Mexican newspaper Milenio. If these figures are compared with those of 2017 ( $30,290 million), an increase of 10.53% is noted.
Growth in all areas
According to the Mexican newspaper Expansión, the average remittances of 2018 were $ 322, that is, $13 more than in 2017; correlatively, the number of operations increased from 98.09 million to 103.96 million. According to the same Expansion report, only in December -as the remittance figures increase thanks to the end of the year festivities-, remittances rose to their fourth-best level of 2018 at an annual rate. In this month, Mexico received up to $2,925 million, that is, 6% more than what was received during December 2017.
This rise in figures could put Mexico in third place worldwide in countries with the most significant amount of remittances. In April of last year, the World Bank carried out a report according to which Mexico ranked fourth in the world, behind India, China, and the Philippines. According to the report, the Philippines received $33,000 million in 2017. If these figures remained stable during 2018, Mexico would surpass the country of Southeast Asia.
In the times of Trump
This is remarkable because of Trump's policies and anti-immigration rhetoric. However, and perhaps surprisingly, it is reported that market analysts have concluded that the increase in remittances is a direct consequence of the protectionist speech of the Trump government, given the prospect of possible deportations, the excellent job performance in the United States and the lack of a policy that limits the sending of remittances, Mexicans working in the United States have sent increasing amounts of money to their country of origin.
Read also: These are the most attractive Latin American countries for accelerators
This situation, however, could change because, in July 2018, Republican Congressman Ted Poe proposed to impose a tax on remittances sent from the United States. "We are sending a lot of money, economic development money from the United States, to Mexico and other countries. Should not the United States charge a one percent fee for these transactions specifically for foreign workers who send money to Mexico and any other country, so that that income stays in the United States? "Poe said.
According to the newspaper Reforma, Poe's proposal was received positively by Kenneth Merten, Acting Deputy State Secretary of the State Department for the Western Hemisphere, and by Sarah-Ann Lynch, Deputy Administrator of the Agency for International Development ( USAID).
LatinAmerican Post | Juan Diego Bogotá
Translated from "En medio del gobierno Trump, remesas en México alcanzan pico histórico"