25 October 2019
The US and China are at each other's throats in a trade war of unprecedented scale. You might think there are no winners in this situation. Nevertheless, some countries reap the benefits of the conflict between the two superpowers. One such country is Mexico. New industrial areas are being developed all over the country, Het Financieele Dagblad writes. In this article, you can read about what makes Mexico such a great production location.
The high import duties have made exporting products from China to the US less appealing. Many businesses are therefore relocating their activities to Mexico. This low-wage country is located along the southern border of the US. This allows for cheaper and more sustainable transport, among other things. The new USMCA trade agreement also has a positive impact on the production environment in Mexico. According to José Ignacio Martínez, professor of International Relations at UNAM University in Mexico City, the trade agreement opens news doors for Mexico in the US.