Mexico is part of one of the most important economic blocs in the world, North America represents approximately 28% of the world’s GDP and Mexico’s trade with the United States and Canada reaches 640 billion dollars within the framework of the T-MEC.
In this context, 80% of exports are destined to the United States and 4% to Canada; Mexico as a neighboring country of the United States has a great advantage, however, this situation can become a dependency that means risks in a context of political volatility, in which a tariff war can bring catastrophic effects for the economy.
According to Senator Cecilia Pinedo, president of the Senate’s ASIA-PACIFIC-AFRICA foreign relations committee, China is Mexico’s second largest trading partner in the world and Mexico is China’s second largest trading partner in Latin America, with economic and commercial exchanges between both nations amounting to 130 billion dollars last year.
“Undoubtedly 52 years after the establishment of diplomatic relations between the two nations, we have managed to build a fruitful relationship in terms of economic and trade cooperation. However, it is evident that there is a great potential that we have not taken advantage of, as there are many opportunities for growth for both Mexico and China”.
In addition, Senator Pinedo stressed that it is necessary to take active actions in the promotion of mechanisms aimed at providing entrepreneurs and investors with better elements for decision making.
Senator Cecilia Pinedo, Chair of the ASIA-PACIFIC-AFRICA Foreign Relations Committee.
“Mexico offers great opportunities to companies from the People’s Republic of China, as a platform to export to Latin America, Europe and North America, and on the other hand, China is presented as one of the most attractive markets, with a population of more than 1,000 million inhabitants and an increasingly higher purchasing power, China and the Asia-Pacific region become one of the engines of the world economy.”
In this context, the recently inaugurated Greater Bay Area and Latin America Trade and Investment Advisory Center will become a central player in building a shared future between the China-Latin America community.
“In Mexico we want to be China’s main partner in Latin America, we have the growth potential, human and natural resources to provide companies seeking new investment destinations, alternatives and development projects in which they will capitalize on returns and generate high quality jobs,” he said.
He also emphasized that it is very important for Mexico to strengthen bilateral trade and investment from China, as this is the only way to achieve a better balance in the trade balance, but even more importantly, because in this way Mexico will diversify its relations with other economies and reduce its dependence on North America.
“Recently, a group of legislators went on a working tour of China, and we were able to see what can be achieved with the use of technology and a plan for growth and development based on equal opportunities. Mexican businessmen, representatives of the legislative branch and the government are aware of the need to promote this political-business economic rapprochement, as we have to work together to consolidate China’s investment in Mexico and encourage more Mexican businessmen to explore opportunities in China,” concluded Cecilia Pinedo.
Source: Mexico Industry