Given the growing importance of protectionism on the international agenda, with the United States as its main driver and its recent adoption by Mexico, the Mexican Institute for Competitiveness (IMCO) called for strengthening trade liberalization as a pillar to increase the added value of Mexican exports .
In a statement, IMCO warned that industrial policy should not be viewed as a substitute for trade liberalization. On the contrary, the success of Plan Mexico depends on expanding supply possibilities, not restricting them . To achieve this, it proposes a strategy that combines infrastructure development, talent development, and productive incentives.
In this way, the organization noted, it will offer competitive conditions and position itself as a strategic investment destination. Furthermore, the country must consolidate its role as an active player in the global economy and defend trade based on clear and predictable rules .
In September, the Mexican government presented an initiative to raise tariffs to 50% on 1,463 tariff lines , with the goal of reducing the trade deficit with China and replacing imports within the framework of Plan Mexico. This measure, however, could generate inflationary pressures and affect the competitiveness of production chains by increasing the price of key inputs from countries without a trade agreement with Mexico.
Mexico as an exporting power
The organization also noted that Mexico has one of the most extensive trade networks in the world: 14 free trade agreements with 52 countries, bilateral investment agreements, and regional conventions in Latin America, Europe, and Asia-Pacific. This infrastructure allows for supplier diversification, attracting investment, and consolidating the country’s international presence .
Therefore, in this context, he indicated that increasing the added value of exports should be a result of national competitiveness , not trade barriers.
To achieve this, IMCO made several proposals, such as aligning Plan Mexico with the relevant chapters of the United States-Mexico-Canada Agreement (USMCA) and the modernized Global Agreement with the European Union to ensure regulatory certainty and attract investment .
He also proposed that Mexico conclude negotiations on international treaties and agreements for greater trade expansion , including ratifying the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and moving forward with Costa Rica’s incorporation into the Pacific Alliance.
Finally, he emphasized the importance of modernizing the regulatory framework in sectors such as energy, GMOs, dairy products, and corn that are sensitive to international disputes.
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