Jamieson Greer, the White House trade representative, urged Mexican business leaders to boost North America’s productive competitiveness.
He delivered this message during a meeting held last Monday with business leaders and executives from chambers of commerce and business organizations in Mexico City. This was part of the second round of formal negotiations on the revision of the USMCA.
North American Productive Competitiveness
In a letter sent to Greer on April 14, the Business Coordinating Council (CCE), the National Council of the Export Manufacturing Industry (Index), and the Confederation of Industrial Chambers (Concamin) argued that joint production between Mexico and the United States, based on comparative advantage, is “key to North American competitiveness.”
These business organizations emphasized that Mexico is not only the most important market for U.S. products. They also noted that integration between the two countries enhances the region’s competitiveness.
Regional Integration
Over the past few decades, Mexico and the United States have strengthened their trade ties. Furthermore, these ties have expanded even further with the establishment of the USMCA.
As a result, both economies are transforming into an integrated regional production system. According to these three private-sector representatives, this “paves the way for global success.”
Mexico has established itself as the most important market for the United States. In fact, U.S. exports to Mexico exceed the combined total of shipments to the four major Asian markets: China, Japan, South Korea, and Taiwan. They also surpass the total exported to the six largest destinations in the European Union: the Netherlands, Germany, France, Italy, Belgium, and Spain.
Furthermore, Mexico is the primary market for 24 U.S. industries, including meat and livestock, dairy, grains, sugar, oil and gas, chemicals, plastics, textiles, auto parts, steel, and aluminum. Mexico is also the top or second-largest destination for exports from 26 U.S. states.
The letter was sent by José Medina Mora, president of the CCE; Alejandro Malagón Barragán, president of the Confederation of Industrial Chambers of the United Mexican States (Concamin); and Humberto Martínez Cantú, president of the National Council of the Maquiladora and Export Manufacturing Industry (Index).