The quick trends in Trump’s fees and Robotics and AI should be an awakened call to Mexico.
Part 1: How did we come here?
Part 2: Why is it necessary to review the Mexican economy?
Part 3: How would it be to review the Mexican economy?
The aim of this three -part series is to reflect the growing trends of trade security (fees), AI and Robotics, considering the potential impacts on Mexico, and developing a debate on potential solutions. Please share your thoughts in the comments section, and we will get a further inspiring and impressive discussion and discussion.
Part 1: How did we come here?
Until recently, increased international trade and globalization will “raise all boats” and increase the quality of life for all participants.
Since the end of World War II, it is the dominant idea of how to nurture the world economy and bring about better integration. Bringing more business partners, selling more and more than each other, increasing the standard of living for all, and ensuring peace created by trading created.
Each one, most of the countries were brought in a mixture: Western Europe, then Eastern Europe, Japan, Korea, Taiwan, Southeast Asia, China and, of course, Mexico. The Mexico party was a little late, and in 1992 there was a relatively closed economy until the North American Free Trade Agreement (NAFTA) was signed with the US and Canada. The agreement was used in the waves of free trade contracts signed between Mexico, which now contains 13 contracts that include 50 countries.
Mexico’s role in the free trade world is one of the natural and logical-its low labor cost and the exact co-production partner for the production of products which are at the geological proximity to the United States. When the Nafda first signed, many in the United States feared that many people in the United States would go to Mexico for American workers (unprecedented “great suction sound” created by Rose Perod.
In fact, many new manufacturing jobs were created in Mexico, but the entry of China in the World Trade Organization (WTO) eventually had the biggest impact on American workers and communities. Millions of jobs and countless factories have gone away as the production of many products has been transferred to China.
Mexican production loss
At the beginning of my career, the first company I worked was part of this trend. With the first production in Wisconsin, the company in the early 1990s acquired a plant in Central Mexico, where it expects to send production tasks. Although some jobs were eventually moved there, more and more were sent to China. This was the fact that many of the final customers were actually in Mexico. It is cheaper to send to Mexico than to produce in China than to produce locally in Mexico.
Over time, Mexican production has become increasingly competitive in some market sectors, and until the Gov -19 is infected, China, Mexico and the United States have all focused on the products they can make with the most competitive.
Of course, as we all know, the infection changed everything.
The distribution chains were broken and the companies began to question their production footprints everywhere. Words such as nearby shoeing and friendship have joined our north, and Mexico has been very good as the main beneficiary of the new production and production trends around the world.
Things changed quickly.
In 2023, Mexico became the leading supplier of goods to the United States for the first time in 20 years. Mexico was clearly taking over the production market from China, with companies around the world to increase production and re -invested profits in their Mexican activities. By 2024, the country increased the share of exports to the United States, with Mexico’s products more than 16% and China fell to less than 14%.
When 2024 was completed and Mexico closed the year Registration Size of Foreign Direct Investment (FTI)Most people felt better about how the country advanced.
It is true that the “new” component of foreign direct investment was low, but most people were in the presidential elections in both Mexico and the United States, until the uncertainty of the year. The newly elected President Shinbam seemed to be “business friendly” than his pioneer, Inflation rate Was coming down, Beso was confirmed Global and Mexican economies appeared at a firm feet.
But things changed quickly.
Trump’s election victory suddenly uncertained uncertainty and attention to Mexico. Most of the initial demands from the United States are the Mexico -controlled migration, which bursts the cartels, and accepts the deported those who have stopped the flow of Fendanil. All important problems, but initially there is no risk of economic speed.
Some expect that Trump will be trying to undertake the free trade agreement that Trump proudly signed with Canada and Mexico during his first term. The preliminary threats of his fees were directly incorporated on these non -economic problems. For many people on both sides of the border, the argument seemed reasonable: “Mexico, help us to clean up problems that cause problems in the United States. We will keep our free trade agreement intact.”
Over the past few weeks, the story from the United States has changed.
Trump’s payment lecture takes a turn
Despite some early rapid and definite improvement from Mexico on the issues that Trump initially insisted, Trump has reviewed the “demand for fees” for economic reasons. Trump began to question the need for any production to walk outside the United States. He continued to lament the broken communities that caused lost jobs and work abroad, and stressed that they need attention to bringing this work back to the United States
So here we are today. The most common argument against all of this is that the United States does not have enough labor, or the energy production capacity can bring back a considerable amount of work.
One logical concern is that moving the task for high -paid American employees and the high -cost environment can be significant inflation. But what if it is very simple or an outdated explanation? If companies are able to move significant work again, employees and energy production is found, what if inflation is controlled?
We even forget the fees for a moment. Although this may seem like scientific fiction, consider the impact of increased robotics to future manufacturers. Consider that AI and factory “digital twins” can be upgraded to improve production performance. Consider for a moment that we may be on the brink of a new industrial revolution that has not been seen for decades.
Later notice what it means to Mexico and what the reincarnation of the Mexican economy looks like. Part 2 tomorrow
Thank you for reading.
Travis Pembenk Chief executive Mexico News Daily ANT has been living in Mexico for almost 30 years, working or playing.
