Mexico’s President Claudia Sheinbaum is leading a new economic strategy to reduce dependence on Chinese imports and strengthen domestic supply chains. The goal is to attract American automakers, semiconductor manufacturers, and global aerospace and electronics giants to shift production from China to Mexico.
As the United States-Mexico-Canada Agreement (USMCA) undergoes a review process, Deputy Trade Minister Luis Rosendo Gutiérrez outlined Mexico’s vision to boost North American trade. The focus is on informal talks with foreign companies to support domestic supply chains and target China as a competitor.
Despite concerns about China potentially using Mexico to bypass US tariffs, Mexico has surpassed China as the largest foreign supplier to the US. The initiative aims to reduce disruptions in supply chains and leverage Mexico’s proximity to US markets.
While challenges like setting import substitution targets and infrastructure limitations exist, experts like Pedro Casas Alatriste see the move as a way to strengthen American trade networks and competitiveness. However, Jorge González Henrichsen warns that developing local supply chains could be a long-term process.
As Mexico boldly implements this plan, its impact on global supply chains and North American trade dynamics remains to be seen.