Mexico’s “Impulse”: David Ordaz

David Ordaz

Mexico is currently experiencing a predominant moment in terms of attachments. business relocation (coastal installation), coming primarily from Asia, has placed our country in the spotlight of the world, taking advantage of its geographical location, its agreements and trade agreementsand healthy public finances, among other strengths.

The notorious distance between USA And China led to the restructuring of production chains, and Mexico stood out in the world for its competitive advantages, such as its privileged geographical location, important industrial base, healthy public finances, and a competitive workforce; key elements for companies looking to relocate their operations.

However, there are also important tasks such as expanding the country’s energy potential, improving infrastructure, maintaining macroeconomic stability and strengthening the rule of law, in addition to the electoral context that will take place in a few months. These are essential elements for improving coastal activities.

Another issue that stands out is the trade relationship between the US and Mexico, where our country has established itself in 2023 as a leader in exports with its northern neighbor. According to data from INEGIMexico exported almost $600,000 millionof which 89% were industrial products and 83% went to the United States.

Within this framework, the export manufacturing industry involves investments from abroad for 9 billion dollars for this year 2024, taking into account the fixed assets that companies acquire through imports. And this also takes into account the fact that in the third quarter of last year Direct foreign investment has reached $32.926 millionof which $2.806 million came from new investments.

This is a very important aspect, since what IMMEX can capture will signal that Mexico as a whole can raise up to $100 billion in the coming years.

It is worth recalling that at the end of 2023, merchandise exports alone under the IMMEX programs exceeded $220 billion, which are added to 3.3 million formal jobs and directly generated by the industry.

Recognizing the political context that Mexico and the United States will face domestically this year, the Mexican manufacturing industry had important approaches to the federal government speed up the necessary procedures and avoid delays to complete the largest number of investments.

Externally, and also immersed in this year’s US elections, the first comprehensive review will take place in 2026 Treaty between Mexico, USA and Canada (T-MEC), where Mexico, the United States and Canada will meet to conduct a “joint review” of the operation of this Treaty. This scenario forces our country to support good relations with our northern neighboras the cooling of bilateral relations will affect the attractiveness of Mexico as an investment destination and companies, mainly Asian, will consider other countries as destinations to complete their relocation. Mexico must not lose momentum.