List, the route for review of the T-MEC

According to the 2024-2030 Work Plan of the Ministry of Economy, one of its main axes is the review of the T-MEC in 2025; However, the agency foresees a lower degree of difficulty compared to the modernization of the North American Free Trade Agreement (NAFTA) in 2018, since there is now a greater consensus regarding protectionism.

We already have a design of the route that we are going to follow to carry out the reviewsays the document, which also highlights the trade war between China and the United States.

In this context, the relocation of companies is present, which is considered as a opportunity for Mexico.

The SE, of which Marcelo Ebrard Casaubón is head, will seek facilitate and accelerate the process of nearshoringtaking advantage of the fact that there are six main sectors that would benefit if China continues to lose market in North America.

The above would imply an increase in the gross domestic product (GDP) of between one and 0.8 percent annually, according to McKinsey, the document states.

In addition, it would allow the main development poles to be strengthened and developed, such as the Felipe Ángeles International Airport.

Value chains

The manufacture of lighting equipment, communication equipment, semiconductors and other electronic components; that of magnetic and optical media; Home, office and kitchen furniture, as well as electronic equipment, would be the industries that will be promoted in the next six years, due to the potential they have to obtain greater profits now that China has lost ground.

The Ministry of Economy will apply the program to replace imports from China, Malaysia, Vietnam and Taiwanpoints out the plan.

With the above, the government of President Claudia Sheinbaum Pardo seeks to strengthen value chains, particularly in priority sectors.

The SE has identified that almost half of the imports are concentrated in 50 companies. 68 percent of Chinese imports are made by foreign firms established in Mexico, and the rest is brought in by local companies.

However, before beginning the current six-year term, work has already begun with the main importers in Asia, including Foxcoon, Intel, General Motors, DHL and Stellantis, among others, to identify products that can be manufactured in Mexico.

In that sense, China’s two main importers, General Motors and Foxconn, will present their replacement plan in October; Intel plans to replace 12 percent of its imports of heatsinks, substrates and thermal trays; and Mabe seeks to transfer more than 50 percent of its imports to the local market.

The SE has identified that the priority sectors where it can gain ground against the Asian economies are automotive and electromobility; new medicine and medical devices; electronic; aerospace; data and chips; generation and accumulation of energy in all its forms, and textiles.

Plan against informality

Another of the primary objectives of the SE is to reduce informality. The plan states that in the first quarter of this year, 54.3 percent of the employed population in Mexico worked in informal conditions.

In a country with inequalities like ours, the high cost of formalizing prevents many companies from accessing the capital necessary to improve their productivity.he points out.

Therefore, it will work with the Digital Agency and other government bodies. to drastically reduce the cost of formality in 2025, increase incentives for its incorporation and provide the sector with financial services.