The High Level Economic Dialogue (DEAN) will help increase the benefits of the Agreement between Mexico, the United States and Canada (USMCA), stated the Ministry of Finance and Public Credit (SHCP) in the General Economic Policy Criteria for 2022.
What is the DEAN? A flexible platform that aims to advance the strategic economic and commercial priorities of Mexico and the United States to promote mutual economic growth, job creation, and regional and global competitiveness.
This Thursday a new meeting of the DEAN will be held in Washington, DC.
Regarding the external demand of Mexico, the SHCP foresees that exports, income from tourism and remittances will be benefited by the behavior and performance of the US economy.
DEAN
«In addition, it is expected that the new thrust of the High Level Economic Dialogue will help increase the benefits of the T-MEC and detonate the global competitiveness of the North American bloc through, among other actions, the relocation of investments to Mexico,» he said the SHCP.
The Ministry of Finance stated that nearshoring is of special interest for Mexico, since not only is it ranked as the fifteenth largest market in the world with a GDP of 1.3 trillion dollars in 2019, but also shares the border with the largest world market, United States, with a GDP of 21.4 trillion dollars in 2019.
In addition to its geographical location, Mexico has the advantage of being a country with solid material and institutional bases for international trade.
In 2020 it ranked eleventh as the largest exporting country in the world and since 2020 it has had a new free trade agreement with the United States, unlike other regions such as the European Union or China that continue to face tariffs with the United States.
Because of these factors, Mexico is attractive for multinational companies looking for a competitive country to relocate their production close to the North American markets.
Interest in Mexico in relocating production chains to countries closer to final consumer markets has been shown in surveys and announcements of possible investments.
For example, globally, a World Bank survey conducted in March 2021 with multinationals found that, among the 56 companies that plan to increase investments in the future, 45% will increase their investments to diversify their geographical locations and 32% will increase their investments to bring production closer to its final consumers.
