Mexico's Strategic Trade Shift: Aligning with U.S. and Nearshoring Plans

Economy Secretary Marcelo Ebrard announced Mexico's plan to support the U.S. in trade conflicts with China. Mexico aims to increase domestic production through nearshoring, reducing reliance on imports. The strategy involves working closely with companies to enhance manufacturing exports, aiming to boost Mexico's economic contribution.

Mexico's top economic authority, Economy Secretary Marcelo Ebrard, has declared the country's intent to side with the United States in its escalating trade disputes with China.

Speaking at a business forum, Ebrard outlined a strategic plan which focuses on encouraging nearshoring, thereby relocating production from Asian factories to Mexican facilities. He emphasized the goal of significantly increasing Mexico's domestic content in manufacturing exports, currently sitting at less than 20%.

Mexico plans to cooperate with companies directly to transition suppliers and parts producers to the country, aiming not just to expand market share, but to enhance internal production capabilities. Notably, Mexico has become the leading supplier to the U.S., surpassing China in 2023.

(With inputs from agencies.)