An Open Economy, Stable, Competitive and Full of Opportunities
- A country of 32 states and 126 million inhabitants.
- It is a Latin American country and a North American Country
- A nominal GDP of approximately $1.15 trillion dollars, the 15th largest economy.
- In terms of GDP at purchasing power parity (PPP), Mexico’s $2.45 trillion economy makes it the 11th largest in the world.
- A manufactures exporting country
- 3% are manufactures
- 8% of what we export to the United States - are agricultural products.
- 9% extractive industries
- Mexico is a major player in the international trade system and an attractive destination for Foreign Direct Investment (FDI).
- Mexico is the 13th largest exporter in the world and the first in Latin America.
- 5th recipient of FDI among emerging countries.
- 10th agrifood producer worldwide.
- 6th international producer of light vehicles and 4th world exporter
- 3rd world exporter of information technology products and services
Mexico is a country open to the world
- Mexico has 13 free trade agreements with around 50 countries
NAFTA 1994; Colombia 1995; Chile 1999; Israel 2000; UE 2000; Islandia-Lichtenstein-Noruega-Suiza 2000; Uruguay 2004; Japón 2005; Perú 2012; Centroamérica 2013; Panamá 2015; Alianza del Pacífico 2016; TPP 2018
NAFTA to USMCA
Since the time NAFTA entered into force 26 years ago, the world has changed. The USMCA is a necessary modernization to NAFTA that recognizes the impacts of technology on the three countries’ economies
The objectives of the USMCA are to eliminate barriers to trade, promote conditions of fair competition, increase investment opportunities, provide adequate protection of intellectual property rights, establish effective procedures for implementing and applying the agreements and resolving disputes, and to further trilateral, regional and multilateral cooperation.
The new Agreement, like the NAFTA that was initiated more than a quarter of a century ago, is an avant-garde agreement that will establish a background and guide for many future Economic Agreements and will provide greater competitiveness to the region as well as certainty to productive investment.
A large amount of the exchange corresponds to intra-firm and intra-industry trade between companies located in Partner countries of North America. In other words, we largely do not buy and sell products to each other, we build them together.
These value chains are critical for advanced industries, such as high-value engineering and research & development, as well as for intensive sectors, such as aerospace, automotive, electronics, and precision instruments.
In other issues like Agriculture sector, we are complementary with our partners, we export fruits and vegetables and some types of meats and buy grains, dairy and some types of meats.
Around 6 million American jobs depend on trade with Mexico.
The number of American jobs supported by trade with Mexico is equivalent to the populations of Delaware, South Dakota, North Dakota, Alaska, D.C., Vermont, and Wyoming combined.
What are the main differences between NAFTA and USMCA
- Positive Balance à 34 chapters that provide certainty to trade and investment.
- USMCA: an innovative treaty with a social perspective (labor support, environmental protection, anti-corruption fight, support for SMEs).
- It modernizes NAFTA disciplines, adapting them to the 21st century economy’s needs.
- It ensures certainty in trade and investment.
- It strengthens North American competitiveness.
- Inclusive and responsible regional trade
- There are a number of changes and inclusions new disciplines like:
- Rules of Origin
- Dispute Settlement
- Environment
- SMEs
- Labor
- Anticorruption
- Intellectual Property