In this report on Mexico's Social Progress Indicator (SPI), social progress at the level of the federal entities is analyzed, with a specific emphasis on trade openness and its relationship with the SPI. The analysis of indicators and their correlation with social progress leads to the conclusion that there is a limited positive relationship. It is noted that a state can have high trade activity without this directly translating into higher social progress. The section dedicated to trade openness in the report interprets these results and suggests possible causes for the entry barriers faced by lagging states, with the goal of ensuring that all regions of the country can benefit from trade openness.
This article provides a historical account of the trade relationship among North American countries, emphasizing the positive effects of democratic governments in the region and how they have favored regional collaboration. Over the 30 years of commercial integration, the decisive factors behind negotiations and approvals have necessarily been political. Maintaining institutional stability emerges as a key factor to ensure a sustainable commercial future in the region. The upcoming electoral period in 2024 and the joint review of the treaty in 2026, calls for North American governments to ensure that domestic policies are favorable to the commercial integration that has been beneficial for all parties since its approval. In this context, the article explores the relationship between democratic institutions and commercial integration, underscoring the importance of maintaining a stable political environment to guarantee the ongoing success of commercial cooperation. The article also addresses the identification of challenges that have weakened the trade relationship over time, providing insights into the elements that countries possess to ensure the continuity of this integration.
The USMCA (T-MEC in Spanish) builds upon the NAFTA but also incorporates significant changes, particularly in the labor market. If these changes are given strength and direction, they could constitute an appealing vision for inclusive trade within the USMCA and throughout the entire continent. It has the potential to shape a new generation of trade agreements and economic relationships with other countries while not excluding shared prosperity for workers through cooperation.
A report delving into the convergence of interests in near-shoring and countering political coercion and dependency on China and other countries outside the region. It underscores that it is a unique moment for Mexico and the United States to work closely with other allies in constructing their integrated support strategy. This report outlines specific areas and elements of an ally support framework to strengthen economic cooperation and security between Mexico and the United States.
The document provides a brief analysis of the legal avenues already available for the USMCA countries to design and execute an expansion process. In addition to the technical negotiation process itself, expanding the USMCA will require a coordinated strategy that takes into account the domestic political situations in Mexico, the United States, and Canada, as all three countries are set to have general elections in 2024 and 2025.
In 2023, Mexico will become the United States' top trading partner, accounting for 15.6% of total exports and imports, surpassing countries such as China, Canada, and Germany. Despite Mexico's privileged geographic and trade position, there are other nations offering additional advantages. It is crucial to leverage the momentum of trade trends to foster closer relations in North America. Banco Base presents relevant information to help Mexico assess its opportunities and address its challenges effectively.
Public data on the trade relationship between Mexico and the United States are collected, filtered, and analyzed. This data is ideal for monitoring trends, making informed decisions, and identifying prominent players and sectors. A model is used to generate a score that weighs other macroeconomic variables regarding the economic potential stemming from near-shoring. This score contributes to the generation of an impact assessment.Nearshoring que fue un insumo para generación de una evaluación de impacto.
The United States-Mexico-Canada Agreement (USMCA), also known as T-MEC in Spanish, is currently at the midpoint between its implementation three years ago and its first joint review, which is scheduled for 2026. At this intermediate stage of the initial phase of the agreement, the article analyzes the challenges Mexico is facing as it seeks to maximize the benefits of its USMCA membership. It acknowledges the positive effects the agreement has had on foreign direct investment and economic growth.
This research work conducts an analysis of the new trends in the semiconductor trade, taking into consideration the political environment in the United States and emphasizing the possibility of relocating supply chains to neighboring countries like Mexico. It provides an overview of the general context of international supply chains, while another section addresses the semiconductor demand in the North American region up to the present day. The primary focus of this study is to assess the business opportunities that certain segments of the supply chain may have for relocation to Mexico, considering current obstacles and proposing strategies aimed at developing public policies that promote collaboration between both governments.
Regional integration of supply chains will deepen over time, but access to clean, reliable, and efficient energy supply remains a challenge. The trilateral agreement (USMCA) must harness the digital revolution to truly succeed and realize its potential. North America is well-suited to attract investments in future industries, but to develop these digital economic opportunities, access to clean and reliable energy sources is essential.
In the new landscape of international trade, Mexico could play a pivotal role due to its geographical proximity to the world's largest market. This article provides a comprehensive and detailed analysis of the emerging trade trends, addressing them on a sectoral and regional basis. It is complemented by a series of interactive dashboards that make the information not only accessible but also continuously updated. The goal is to serve as a guide for decision-making by both businesses and governments, as well as a valuable source of information for the general public.
North America has weathered three tumultuous decades since the implementation of the North American Free Trade Agreement (NAFTA). What characterizes our shared region today? What kind of region can promote our shared interests and well-being in the next generation? This volume consists of essays that explore how regional leaders can forge inclusive and effective strategies to ensure that the coming decades in North America build upon past successes while addressing significant shortcomings.
The city of San Francisco in the United States hosted the Asia-Pacific Economic Cooperation (APEC) Forum in 2023, reaffirming its significance as a host for key conferences in international trade. A total of 22 world leaders gathered to address crucial issues in the Asian and Pacific economies, such as the current state of international trade, the economy, and innovation. Among the numerous highlighted events, government forums took place where various initiatives and programs were launched to revitalize economies, promote clean energy, regulate artificial intelligence, and foster innovation in startups, among other topics. The importance of San Francisco becoming a hub for diplomatic discussions lies in its focus on the North American region to shape the course of current affairs affecting the economy and trade worldwide.
A defining trend of the past year is the fluidity of global supply chains. Companies are on the move, driven by the memory of disruptions caused by COVID-19, significant shifts in demand and supply, demographic changes, and geopolitics. Latin American economies have not fully capitalized on this dynamism yet. To do so, they will need to find a way to work together before the window of opportunity closes. The text explores the challenges of foreign direct investment (FDI) and the right place to allocate it.
A secure and reliable energy sector is one of the most vital elements for promoting economic growth, human development, and increased trade. In this forum, the proposal is to ensure reliable, affordable, and increasingly low-emission access to energy, which will be crucial for the region to seize the opportunities presented by "nearshoring" and meet broader economic integration goals in North America. A key transition is towards natural gas, as it is considered a sector with potential, and with trilateral cooperation, it opens up a new conversation on energy.
"Near-shoring" offers Mexico the opportunity to strengthen its economic ties with neighboring countries and stimulate its economic growth. This study by IMCO focuses on analyzing the advantages at the state level and how to leverage them. To determine the potential for harnessing "near-shoring," aspects such as the labor market, housing and services, availability of basic inputs, regulatory quality, and investment attraction were evaluated.
There are previously examined operational aspects that highlight the benefits of near-shoring. The dynamics of trade have led the business sector to exhibit a growing interest in mergers and acquisitions involving Mexican and international companies. This study analyzes the most significant mergers and acquisitions, categorized by sector and transaction amount, providing valuable information for investors interested in the country.
In this essay, a brief historical overview of the relationship between the United States and China is provided, and it also highlights how Mexico has gradually positioned itself within this trade dynamic. The essay discusses Mexico's market participation trends as a trading partner of the United States and proposes strategies to make the goal of regional competitiveness feasible by leveraging the diversification of supply chains.
This essay emphasizes how for many years, Mexican imports to the United States have been overshadowed by China. However, the trade situation between China and the United States presents an unprecedented opportunity. It highlights the benefits that the tariff trade war brought to Mexico, Mexico's participation in various manufactured goods imports, and their monthly variations in 2019.
The literature is abundant in the benefits of near-shoring and its opportunities, with studies that quantify its economic impact. While the benefits for Mexicans are clear, infrastructure challenges can diminish these benefits if not addressed properly. This article examines the current transportation infrastructure and proposes measures to fully harness the advantages of near-shoring.
Foreign direct investment in Latin America reached a historic high in 2022, but Mexico only garnered 17 percent of its total investment despite its significant economic presence in the region. The article explores the reasons behind this imbalance and raises questions about Mexico's future in the near-shoring trend and the 2024 elections.
Analyzing where we come from and where we are heading, this study examines future opportunities and challenges related to the trilateral North American trade relationship. It delves into issues of governance, dispute resolution panels, employment, and coordination among the three countries, presenting data that underscores the importance of strengthening relations and cooperation among nations.
GBM conducts a new analysis where they introduce a "barometer" to track the progress of a once-in-a-lifetime opportunity for Mexico, which is near-shoring. To do this, they include certain economic indicators and variables that, in brief, suggest a unique opportunity for the Mexican economy that is currently materializing.
In this report on regional economies, Mexico's central bank observes that in recent years, there has been questioning of the global production system based on fragmented international supply chains. This has raised the possibility of a reconfiguration of these chains, with increased production and investment closer to consumer markets, which would strengthen regional production chains. Given the uncertainty surrounding this trend and its impact on Mexican production, they collect business opinions through surveys that help discern the changes in the economy explained by the relocation of supply chains and efforts to bring production closer to the United States.
This essay provides a recount of significant events between 2018 and 2021 in international trade and investment, with an emphasis on challenges that have arisen in the trade relationship between the United States and China. The essay focuses on international companies' efforts to make their supply chains resilient to crises and their intent to diversify away from China. It analyzes the investment environment and variables that bolster the notion that Mexico is an ideal candidate for near-shoring.
Education and skills are essential for improving people's economic opportunities. Enrollment in U.S. universities has not fully recovered after the COVID-19 pandemic, which is concerning due to the demographic decline in the country. This underscores the need to increase workforce productivity. The report highlights the increase in university enrollment among students from immigrant families in recent years and urges policymakers to recognize the importance of this population, especially in relation to U.S. citizenship permits and university admission criteria. The report provides data and figures that emphasize the relevance of immigrants in higher education in the United States.
In this research paper, the focus is on a temporary work visa known as the TN visa, which serves as an instrument to alleviate labor shortages in the United States. It also provides a pathway for legal integration into the North American labor market. A section of the paper delves into how the TN visa could be expanded and enhanced in future renegotiations of the United States-Mexico-Canada Agreement (USMCA) to incentivize Mexicans to engage in the U.S. labor market with proper authorization.
The United States has been experiencing an unusual labor shortage in the last five years, with extremely low unemployment rates in some states. This shortage has been exacerbated by a decline in legal immigration and is constraining economic growth and job opportunities. The report discusses how trade agreements with Mexico and Canada could help alleviate this shortage by enabling the temporary transfer of workers across borders.
A report that provides an analysis of the labor markets, demographics, and economies in Mexico and the United States, with the aim of proposing a strategy for synergy and complementarity between both labor forces. Through co-production, targeted training, investment attraction, and progressive labor policies, both countries can strengthen their production chains, enhance resilience to crises, reduce unemployment, and mitigate inflationary shocks.