Mexico has positioned itself to support the United States in potential trade conflicts with China while also aiming to boost local production, according to a recent report. Marcelo Ebrard, Mexico’s Economy Secretary, indicated during a business forum that Mexico is prepared to align with the US in trade disputes with China, which he described as being more intense now than in previous years.
Ebrard outlined Mexico’s plan to actively promote North American interests amidst the ongoing trade tensions. One key strategy involves embracing nearshoring, which involves relocating production from Asian plants to Mexico. Ebrard emphasised the importance of increasing Mexico’s domestic content in manufacturing exports, which currently stands at less than 20%. The government is exploring ways to reduce imports and enhance domestic production by encouraging suppliers and parts producers to establish operations in Mexico.
The shift towards manufacturing exports has been significant for Mexico, with products like cars, trucks, machinery, and appliances now surpassing the country’s traditional oil exports to the US. In 2023, Mexico overtook China as the leading supplier of imported goods to the US market for the first time in over two decades.
Ebrard stressed the government’s commitment to collaborating with individual companies to bolster domestic production. He highlighted the need for dedicated resources and support to increase Mexico’s market share and enhance local manufacturing capabilities. By focusing on fostering partnerships and increasing the production of goods within Mexico, the country aims to strengthen its position in the global market.
The evolving trade dynamics and Mexico’s strategic responses reflect a broader trend towards regional cooperation and economic development in North America. As countries navigate the complexities of international trade, Mexico’s emphasis on boosting local content underscores its commitment to strengthening domestic industries and maximising trade opportunities.