The United States-Mexico-Canada Free Trade Agreement (USMCA) will not be broken, and on the contrary, once its renegotiation is concluded, there will be “very intense growth,” agree both large North American companies based in Jalisco and Mexican federal authorities.
“Currently, 84% of Mexican products exported are already off the table. What are we going to focus on? 16% of the issues, of course the most sensitive ones: the automotive industry, steel, and other issues that speak to an important negotiation process, but also a consolidation of a trading bloc, of the most important economy in the world. And the most important economy in the world is not the United States, it is the United States, Mexico, and Canada. The sum of the three makes us the most important economy. We are allies, we are partners, and strategically, we are heading in the same direction,” stated Alberto Uribe Camacho, head of the General Directorate of National Content and Energy Sector Promotion of the federal Ministry of Economy.
Optimistic Outlook
For his part, Ernesto Sánchez Proal, president of the Guadalajara chapter of the American Chamber of Commerce (AMCHAM), expressed that the consensus of large U.S. companies and their executives affiliated with the chamber, as expressed through their local chapters, “is that the renegotiation will be successful; that is, that trade will continue.”
He emphasized that if one analyzes the economic variables at play, specifically the installed productive capacity of the United States, “it is very difficult to quickly replace the production capacity in Mexico.”
Sánchez Proal added that, although the current uncertainty represents a challenge, AMCHAM foresees an opportunity “because once this renegotiation begins, it will be very clear that the integration of the United States and Mexico must be strengthened.”
They foresee intense growth
“Nearshoring is a strategy that must be intensified to avoid affecting the United States economy. In fact, the consequences of inflation and unemployment would be very severe there, and of course, here it would be catastrophic if the treaty were to be broken,” the president of AMCHAM emphasized.
“We don’t see such a high risk; we see a period of stability, of no growth, but once this renegotiation begins, we see a period of very intense growth. And in fact, many local companies already have strong growth plans; they are already requesting energy for this growth; in other words, they are preparing for growth; many of them are American companies,” he emphasized.
Source: eleconomista
