Mexico’s President Enrique Peña Nieto was due to travel to Washington last week for what promised to be a very difficult encounter with Donald Trump. Now President Trump has said there is no point in holding a meeting unless Mexico agrees to pay for a wall between the two countries. The episode is a stark reminder that we have to take Mr Trump seriously — and that starts with Mr Nieto.
The US is the destination for $236bn worth of Mexican exports — with a trade surplus in Mexico’s favour of almost $60bn — and has been a crucial source of investment in the country. Now this powerful neighbour is flexing its muscles. The question is whether Mexico’s energy riches offer an opportunity for a less one-sided deal. Read more