Manufacturing in Mexico is having its moment. The US is buying in — and so is China

By John Towfighi, CNN - Published 9:40 PM EDT, Sun April 28, 2024

As US supply chains decouple from China, Mexico’s manufacturing sector is emerging as a winner.

As nearshoring continues and global supply chains are reorganized, Mexico’s manufacturing sector has an opportunity for long-term success.

 

Mexico surpassed China as the top exporter to the US in 2023. Those exports were driven by manufacturing, which comprises 40% of Mexico’s economy, according to Morgan Stanley.

 

US imports from Mexico continued to increase in February, according to April 4 trade data released by the Commerce Department. Meanwhile, Chinese exports to the US were down 20% in 2023, compared to 2022.

 

Amid shifting geopolitics and competition, US and Chinese companies both see potential in Mexican manufacturing: Low labor costs, geographic proximity to American markets and the US-Mexico-Canada (USMCA) agreement — a free trade accord established in 2020 that makes trade in North America more cost-effective and efficient — are all factors contributing to a potential boom.

 

https://www.cnn.com/2024/04/28/business/us-china-mexico-manufacturing-nearshoring-hnk-intl/index.html