If you're unfamiliar with geopolitics, it's the struggle over control of geographical entities with a global or international dimension. It is also the use of such geographical entities for political advantage.
The collapse of the Soviet Union ended the last serious challenge for territorial dominion over Eurasia. The primary goal of American foreign policy was accomplished. With this, the United States established itself as a global leader in geopolitics and economics. Since then, the US dollar has been mandated as the currency of most goods and services trades. This is one of the many reasons the American currency has held some value for so long.
It's always been a heavily contested world. China has the longest continuous history of any country in the world—3,500 years of written history. There was a time when the Chinese were the world's economic leader and they believe they need to regain control, financially speaking, in order to break out of what they call "the century of humiliation." In recent years, tensions between the US and China have led to a power struggle we had never seen before. The US sanctioned Russia over Ukraine's attack. That isolated Russia from the world and forced them to form a stronger coalition with China (they've had a relationship with them for a long time) among other countries, trying to improve their economy outside the scope of the US.
They recently formed BRICS, an acronym for five leading emerging economies: Brazil, Russia, India, China, and South Africa.
BRICS is basically the equivalent of the G7 "Group of seven", consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States; additionally, the European Union (EU) is a "non-enumerated member". It was formed in 2009, attempting to establish a new world order. In 2014, with $50 billion dollars in seed money, the BRICS nations launched the New Development Bank as an alternative to the World Bank and the International Monetary Fund. In addition, they created a liquidity mechanism called the Contingent Reserve Arrangement to support members struggling with payments. These offers were not only attractive to the BRICS nations themselves, but also to many other developing and emerging economies that had painful economic experiences.
Mexico recently applied to become a member of BRICS, in an effort to create something different for the long-time suffering Mexican currency. Mexico is one of the world's largest economies, the 15th largest economy in the world, as well as the leading exporter in Latin America. They trade globally with almost 40 countries via free trade agreements (FTAs). Their most influential FTA is the agreement between the US and Canada, previously known as NAFTA, now called USMCA. If Mexico in fact joins BRICS, that could create a significant response from the US. It could lead to some consequences that could alter the relationship between Mexico, the US, and the rest of the world. If Mexico joins BRICS, the Mexican currency would actually be more valuable and will only strengthen their economy in a few ways. Mexico is one of the largest oil producers in the world. They are also strong in the agricultural environment and the mining field.
Mexico’s move comes amid growing tensions with its northern neighbor, the United States, over issues such as immigration, border security, trade and human rights. Mexico has been asked to do more to stop the flow of migrants from Central America after the US, threatened to cut off aid, and impose tariffs on its goods. The US has also criticized Mexico's handling of the Covid-19 pandemic and alleged interference in the Venezuelan crisis.
Mexico sees the BRICS as an alternative platform to diversify its foreign relations and increase its global influence. Mexico is the second-largest economy in Latin America after Brazil and has a population of more than 120 million people. It also has a strong manufacturing sector that competes with China in some markets. Mexico has already established close ties with China, i
ts second-largest trading partner. Mexico has also participated in several BRICS summits as an observer and guest.
Would the US allow Mexico to participate in that financial environment without repercussions? Are Mexico's threats just an attempt to get a better deal from their northern neighbors?
It will be interesting to see what happens.
by Beto Rodriguez
Looks like you did a little research before writing it, because I learned a few thing reading it.