Can Trump Rename the Gulf of Mexico and Who Owns It?
The Gulf of Mexico serves as a significant economic hub for the United States, Mexico, and Cuba.
President-elect Donald Trump is once again contemplating a bold, albeit unlikely, international acquisition—similar to his previous consideration of the "absolute necessity" of the United States purchasing Greenland—as he prepares to assume office.
Currently, Trump is entertaining the notion of renaming the Gulf of Mexico to the "Gulf of America."
The countries that exert the most influence over the gulf are the United States, Mexico, and Cuba, which have collaboratively utilized this body of water for many years. The gulf is vital for various economic activities, including fishing, electricity production, and maritime trade.
The name "Gulf of Mexico" does not originate from the contemporary nation of Mexico; rather, it is derived from a Native American settlement that has held this name for over four centuries.
Despite the shared nature of the gulf among several nations, Trump recently asserted that the United States contributes the "most work" in the region and claimed that the body of water should be named after America "because it's ours."
Ownership of the gulf remains a contentious issue; however, it is a fact that the United States has asserted authority over a significant portion of it. According to the United Nations Convention on the Law of the Sea, U.S. territorial waters extend 12 nautical miles from its coastline, with the federal government overseeing both the waters and the submerged areas of the Outer Continental Shelf.
In line with some of Trump's statements, he did not elaborate on the specifics of how he intends to implement the name change, deferring action on the matter to "a future date pretty soon."
Congresswoman Marjorie Taylor Greene, a supporter of Trump, announced her intention to propose legislation aimed at renaming the gulf on Thursday.
“The American people are footing the bill to protect and secure the maritime waterways for commerce to be conducted. Our U.S. armed forces protect the area from any military threats from foreign countries,” she said in a statement. “It’s our gulf. The rightful name is the Gulf of America and it’s what the entire world should refer to it as.”
The United States may enact legislation mandating a name change within its borders; however, there would be no obligation for other countries to comply with such a decision.
Trump has also utilized his statements to criticize Mexico, labeling the country as "very dangerous" and "in a lot of trouble," referencing issues such as drug trafficking and illegal immigration. It is important to note that a significant portion of drug trafficking from Mexico is driven by the consumer demand in the United States.
Additionally, Trump has suggested the implementation of tariffs on both Mexico and Canada should these nations fail to address his demands regarding illegal immigration and drug trafficking. He has asserted that America's neighboring countries are accountable for a considerable volume of drug and illegal immigrant crossings, yet he has not substantiated his assertions with data or evidence.
If Mexican President Claudia Sheinbaum Pardo is taking Trump's threats regarding the renaming of the gulf seriously, she has not publicly indicated this. Nevertheless, she has addressed his tariff threats, informing the former president that the violence perpetrated by cartels in Mexico—and the resulting instability—is largely driven by American demand for illegal drugs and the smuggling of U.S.-manufactured weapons into her country.
Trump has suggested the possibility of U.S. military operations in Mexico aimed at confronting drug cartels. He has also indicated his intention to designate Mexican drug cartels as "terrorist organizations." Additionally, he has accused Panama of imposing excessive charges on U.S. shipping vessels utilizing the Panama Canal.
The idea of renaming the Gulf of Mexico to the "Gulf of America" reflects a troubling sense of entitlement and disregard for international cooperation. Such a move would not only be disrespectful to the historical and cultural significance of the region, but it also undermines the shared responsibility of the United States, Mexico, and Cuba in managing this vital body of water.
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Trump's proposal is based on a narrow, nationalistic perspective that fails to consider the broader geopolitical and environmental implications. Instead of fostering unity, it risks further alienating neighboring countries and damaging diplomatic relations in an already tense global landscape.
US Businesses Concerned About Trump's Proposed Tariffs.
Key Insights
Numerous economists anticipate that the prospective tariffs proposed by President-elect Donald Trump on Mexico, Canada, and China will lead to higher prices for consumers in the United States. The latest Beige Book from the Federal Reserve indicates that this issue has also raised concerns among American businesses.
Business executives express apprehension that these tariffs could impact their profit margins, as they may drive consumers away from the market and increase the costs of international imports. Many have indicated that they are stockpiling inventory to mitigate the adverse effects that could arise from these potential tariffs.
American enterprises are expressing concern regarding the inflationary impact of tariffs and are proactively implementing measures to safeguard their future sales.
This information is derived from the current Beige Book, which provides the Federal Reserve with valuable insights into the prevailing economic conditions nationwide. In December, business leaders in the United States indicated that they are accumulating inventory and postponing investments due to the uncertainty surrounding the potential tariffs proposed by President-elect Donald Trump.
Recently, Trump announced his intention to impose significant tariffs on imports from China, Mexico, and Canada upon assuming office. Economists have raised alarms about these tariffs, suggesting that taxes on imports may result in increased prices for American consumers, as importers are likely to transfer these cost hikes to shoppers.
U.S. Businesses Express Concern About How Tariffs Will Affect Them
U.S. business leaders have reported a slight improvement in their overall economic outlook since the previous Beige Book release; however, they remain apprehensive about the potential price increases resulting from tariffs.
Ernie Tedeschi, the director of economics at the Yale Budget Lab, estimates that tariffs imposed on Mexico, Canada, and China could lead to an increase of approximately $1,180 in costs per household.
The Tax Foundation has indicated that such tariffs may deter American consumers from purchasing certain products.
Officials from the Federal Reserve Bank of Philadelphia noted that inflation expectations have risen for both individual firms and the broader economy, with many expressing concerns regarding the inflationary consequences of possible tariffs.
In Dallas, some business representatives viewed the election results as a significant factor contributing to their optimism, while others expressed concerns that tariffs might adversely affect international sales.
What Businesses Are Going To Do In Response
Businesses engaged in the importation of goods, including electronics, footwear, automobiles, and fresh produce, are expressing significant concern.
Officials from the Federal Reserve indicated that the prevailing uncertainty has led some companies to delay investment decisions until new policies are enacted or international agreements are reached. Business executives have mentioned that they increased their inventory levels prior to President Trump's inauguration in January to shield themselves from potential adverse effects of forthcoming tariffs.
“A computer retailer noted an increase in sales in recent weeks as business clients pulled ahead replacement plans to avoid expected higher prices for imported electronics,” Chicago Fed officials wrote.
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There’s been a lot of money being invested in Latin American startups. Why do you think that is?
There’s a giant sense of community among entrepreneurs in Latin America. Personally, I have been an adviser to multiple startups in the region that have raised substantial capital during the last year and was fortunate to be chosen by Picus Capital as their first partner in a new global network of venture capital partners. It’s really been a two-way street in Latin America for us with entrepreneurs such as Sebastian Mejia from Rappi investing in Clara, among other relevant entrepreneurs and unicorn founders.
Startups are born with a “tech DNA” and are solving needs of customers and companies in a very easy and affordable way by leveraging and/or creating new technology. Latin American entrepreneurs are really focused on this and combine that with that sense of community in the region, these ideas and solutions seem to be expanding off one another.
What problem is Clara solving?
Spend-management for companies. Clara is giving Latin American companies more control over their financial future by reducing the bureaucratic processes of obtaining corporate credit cards and also leveraging innovative technology to give companies affordable, agile, and digital spend management solutions.
What makes Clara attractive to investors and tech talent?
As an organisation, Clara has a ton of experience in traditional banking, which is essential to understanding our product and services. Clara’s solid business model and tech infrastructure has been attracting sought-after minds in the industry. Our Chief Marketing Officer and Chief People Officer come from Citibanamex. One of our regional directors comes from HSBC and Scotiabank. But at Clara, we also understand that the success of an organisation depends on a mix of seniority and young talent. That’s why we make sure to have a balance of experienced employees and those who are still developing their careers.
It’s not just our people that make Clara attractive, but what we offer them for joining our organisation. There’s no other Latin American startup that offers exactly what Clara does, which we call the “7 Dimensions”. We focus on our employees’ physical health, emotional health, self-development, work environment, financial health, family, and community. Aside from our customers, we want our employees to be happy and healthy in all aspects of their lives. We cannot deliver the best product without a productive team.
Clara’s solid business model and tech infrastructure has been attracting sought-after minds in the industry.
How is Clara committing to financial inclusion in Latin America?
Clara contributes to financial inclusion across Latin America through its offering of digital solutions that align enterprise growth with versatile and dependable resource management. Clara is developing tech products that are easy to use and affordable, with no annual fees or no costs upfront. Clara does more than just that for our customers, though. Clara also has a digital onboarding process where we guide our customers through the platform and how to make the most out of it. We like to ensure our customers understand our products and can use them efficiently. If a customer does have any issues, we have a solution for that, too. When Clara enters a new market, we build local customer service teams to ensure customers speak with Clara representatives who are immersed in the region and able to understand local, regional, and national business needs. Our customers don’t call another country to reach our call centre representatives. They can speak directly to Clara representatives in their region. And finally, Clara leverages our network to offer exclusive benefits to our clients through partnerships with other companies in the region that they would otherwise be unable to secure.
Who’s using your products and why did they select them?
Fast-growing startups and an increasingly important number of companies in the enterprise segment, including companies in the automotive, logistics, real estate, travel, and tech industries have chosen Clara. Clara is solving a very common pain point (spend management) for Latin American companies through digital tools that can be adapted to any ERP (enterprise segment).
What makes applying for a corporate credit card a hassle for most businesses?
Applying for a corporate credit card is tough, especially with the bureaucratic processes of traditional banks. Startups don’t have a financial or credit history and that’s why they are often denied corporate credits. Clara gets rid of that red tape and gives startups and big corporations a chance to thrive here in Latin America.
How does Clara help Latin American businesses compete in the global marketplace?
By leveraging Clara’s technological solutions and solid infrastructure, companies are able to grow, rise, and thrive. It’s imperative to match growth with good financial management to reach long-term success. With the bureaucratic processes and often year-long waits to be approved for corporate credit cards, Latin American companies need to remain competitive through agile and integrated digital products that get companies credit and spend management solutions quickly without the red tape.
Where do you see the financial services technology industry going in the future?
In a more technological way, more agile and integrated. Digital payments services and products will rise throughout the region and world.
Where’s Clara expanding next?
Clara has plans to expand into Peru, Argentina, Chile, Uruguay and the rest of Latin America.
Eni and Lukoil have signed a farm-out agreement for the transfer of participating interests in three exploration licenses in Mexico’s shallow waters. According to the agreement, Eni will give Lukoil a 20% stake in the Production Sharing Contracts (PSC) in both Area 10 and Area 14, and will acquire a 40% stake in Lukoil’s PSC for Area 12. The objective of the deal, in light of the close proximity of the blocks, is to diversify the exploration risks, accessing wider opportunities and increasing mutual operational synergies. The new joint ventures will be as follows: Area 10 (Eni 80% operator, Lukoil 20%); Area 12 (Lukoil 60% operator, Eni 40%); Area 14 (Eni 40% operator, Citla 40% and Lukoil 20%). The agreement is subject to the approval by the Mexican authorities.
The three blocks are all located in the prolific Sureste Basin and they were awarded to Eni and Lukoil in 2017 as the outcome of an international competitive bid round called “Ronda 2.1”, issued by the National Hydrocarbon Commission (CNH). The exploration drilling campaign is planned to start as early as mid-2019.
Eni has been present in Mexico since 2006 and established its wholly-owned subsidiary Eni Mexico S. de R.L. de C.V. in 2015. After the approval of the swap agreement by the Mexican authorities, Eni will hold rights in seven exploration and production blocks all offshore: Area 1 (Eni 100%, operator), Area 7 (Eni 45%, op.), Area 10 (Eni 80%, op.), Area 12 (Eni 40%), Area 14 (Eni 40%, op.), Area 24 (Eni 65%, op.) and Area 28 (Eni 75%, op.). In July 2018 CNH approved Eni’s Development Plan for the discoveries of Amoca, Miztón and Tecoalli, located in Area 1, which hold an estimated 2.1 billion barrels of oil equivalent in place (90% oil) in world-class reservoirs.
