According to an analysis by Intercam, the best way to measure the impact of nearshoring is not only through FDI, but by observing Mexico’s share of US imports.
Between January and July 2024, US imports from Mexico accounted for 15.7%, surpassing China and Canada. This figure reflects an increase compared to the average of 13.2% recorded between 2014 and 2018, which demonstrates Mexico’s growing role as a key trading partner.
They indicated that the 2.5 percentage point increase in trade participation confirms the trend of relocating production chains to Mexico.
Although 97% of FDI in the first half of 2024 corresponds to reinvestment of profits and not new investments, the growth in exports to the United States highlights the relevance of nearshoring as a strategy. Although there are still challenges to be faced, the increase in bilateral trade between Mexico and its main trading partner is a key indicator of the success of this phenomenon.
Analysts at Intercam say that: “Possibly the best way to show Mexico’s suitability for relocating production chains is to evaluate imports from the United States and how they have been modified for each of its trading partners, since it is a highly competitive market.”
Regarding exports to the United States, there is an undeniable advance in nearshoring, although of course there are challenges to be addressed.
Source: realestatemarket
