The importance of international trade for Mexico cannot be underestimated. The nation has experienced a reconfiguration of its global economic environment due to events such as the trade war between China and the United States, the Covid-19 pandemic, and the conflict between Russia and Ukraine. These events have disrupted supply chains and raised production costs, prompting Mexico to strengthen its regional economic development.
Thanks to its strategic location in North America, Mexico has managed to use these circumstances to its advantage. The country has maintained a positive trade balance with the United States; for every peso imported, the country exports two. Mexican exports have reached record levels, with 86% of these going to North America. In 2023, Mexico became the United States’ top trading partner, surpassing China and Canada, and ranked ninth worldwide in exports.
According to Buenrostro, the country leads the global market in tractor-trailers, beer, avocado, tomato and strawberries, and occupies prominent positions in other key sectors such as heavy vehicles, auto parts and medical devices. Mexico has 14 Free Trade Agreements with 50 countries, the most relevant being the agreement with North America. This region, which represents 30% of the global GDP with more than 500 million people, generates trade equivalent to 3.1 million dollars per minute.
“Mexico is currently in its best economic moment in decades,” said the Secretary of Economy. With a growing economy, which ranks twelfth in the world, the country has broken records in employment, wages and exports. In addition, macroeconomic stability has positioned Mexico as the ninth most attractive country for foreign direct investment, with 36 billion dollars in investments registered last year and 20 billion so far this year. 50% of these investments come from companies with capital in North America.
Claudia Sheinbaum’s administration will focus on three main objectives to strengthen the economy: developing value chains with national content, strengthening the existing industry, and promoting regional development with productive vocations. An example is the evolution in the automotive industry, where Mexico has gone from assembling final parts to integrating auto parts and previous suppliers, increasing the industry by 46% during the current administration.
Mexico is also positioning strategic sectors such as semiconductors, electromobility and medical devices. In September 2023, a semiconductor symposium was held in Mexico, demonstrating the commitment to the growth of this industry. Likewise, the medical device sector has grown by 9.5% annually, with important contracts globally.
The upcoming renegotiation of the USMCA will be an opportunity to consolidate these advances and guarantee a solid and equitable trade relationship with its North American partners.
