To commemorate Enrique Peña Nieto’s inauguration, the Americas Society/Council of the Americas asked many avid Mexico watchers what should be the top priority for U.S.-Mexico relations going forward. Here was my response:
Mexico and the United States should focus on deepening economic ties. Commercial interdependence is already substantial, with nearly a half trillion dollars’ worth of goods crossing the border each year. Some 80 percent of Mexico’s exports go north, and for nearly half of U.S. states, Mexico is the number one or two destination for exports— supporting an estimated 6 million American jobs today.
These exports are more often than not pieces and parts—not finished goods—evidence of the regional supply chains developing in North America. In fact, 40 percent (on average) of every product imported from Mexico is really “made in America.” This compares to just 4 percent in goods from China.
Facilitating and expanding these production links will require making cross-border trade more efficient through investments in border infrastructure, standardized regulations (so that countries do not need fulfill similar requirements in both countries), and common customs forms, among other efforts. But they will also enable companies to become more globally competitive, benefiting businesses, workers, and ultimately the economies of both nations.
Published in conjunction with Latin America’s Moment at the Council on Foreign Relations