Mexico‘s government plans to promote export diversification in the United States by 2025.
This objective is set forth in the 2025 economic package that the Ministry of Finance and Public Credit (SHCP) sent to Congress this Friday.
The economic package is made up of three documents:
- General Economic Policy Criteria (CGPE).
- Federal Income Law Initiative (Ley de Ingresos de la Federación, ILIF).
- Federal Expenditure Budget Bill (PPEF).
Export diversification in the United States
The SHCP indicated that Mexico will benefit from regional integration with North America, maximizing the opportunities of the Treaty between Mexico, the United States and Canada (USMCA) and taking advantage of the growing demand in key sectors, such as semiconductors.
This will continue to consolidate Mexico as the United States’ main trading partner, fostering greater integration in regional value chains and opening up new opportunities for growth.
In this regard, the export sector will play a key role, supported by the dynamism of U.S. manufacturing and the close trade integration with that sector.
Specifically, the diversification of exports within the United States will allow Mexico to expand its participation in strategic states and sectors, strengthening the value chains of the North American bloc.
Opportunities
States with strong trade ties to Mexico, such as Texas and Michigan, are expected to maintain favorable economic growth. In addition, states where Mexico has diversified its presence, such as Georgia, Tennessee and Illinois, will also experience positive performance. In these regions, Mexico’s share grew an average of 2.9% between 2018 and 2024.
Moreover, the post-election environment in the United States is expected to increase business confidence. This optimism was already reflected in last October’s leading indicators.
In addition, several factors will stimulate investment and private consumption in Mexico and the United States. These include the easing of financial conditions, driven by lower interest rates from the FED and the Bank of Mexico. In addition, lower inflation and the normalization of excess household savings will play a key role in this recovery.