The Sixth Government Report of the President of Mexico, Andrés Manuel López Obrador (AMLO), highlighted the good economic moment that the country went through during this administration, exceeding the growth expectations for 2023 which, according to the document, is mainly driven by the strength of its domestic market .
Although the outgoing administration went through challenges such as the coronavirus pandemic, geopolitical and economic conflicts that generate a domino effect on current supply chains, the country coped with some strategies such as encouraging investment and regionalizing supply chains .
The document stressed that since the beginning of the Treaty between Mexico, the United States and Canada (T-MEC) in July 2020, Mexican trade and, therefore, the economy have strengthened.
USMCA boosts chains in North America
Some data released in AMLO’s latest government report detailed that Mexico’s trade relationship with its northern partners stood at 778 billion 266 million dollars (mdd) in 2023 , 29.4% more than in 2019 (601 billion 646 mdd) and represented 65.3% of Mexico’s total trade in that year.
Likewise, Mexico’s trade balance with North America showed a surplus in 2023 , with 85.7% in exports (US$508,193 million) and 44.9% in imports (US$268,561 million).
On the other hand, it is worth noting that Mexico displaced China as the United States’ leading trading partner in 2023 , with a trade surplus in favor of Mexico of $235 billion.
Furthermore, the three countries have made efforts towards regional integration, including supply chains in this process, in which, it is worth noting, AMLO proposed the commercial integration of the region with the substitution of imports from other parts of the world, mainly from Asia in 2023, during the 10th North American Leaders Summit.
In this regard, the Government Report highlighted that they identified five strategic sectors that induce the development potential of the chains with the greatest incorporation of components and manufactured goods in Mexico and in the region: electric cars, electrical and electronics, semiconductors, medical devices and agribusiness.
Nearshoring , the push
The document released by the Government of Mexico detailed that, according to figures from the United Nations Conference on Trade and Development (UNCTAD) , in 2023 Mexico positioned itself as the ninth economy with the greatest reception of foreign investment worldwide, the fifth in the Organization for Economic Cooperation and Development (OECD) , the fourth on the continent and the second in Latin America, highlighting its characteristics of economic stability, competitive advantages and a favorable business environment.
This is also reflected in the figures from the Ministry of Economy , which indicate that in 2023, US$36,282 million were recorded in this activity, while for the second half of 2024, US$31,096 million were already recorded, both figures at historical highs.
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