In a strategic pivot amid escalating trade tensions between the United States and China, Mexico’s Economy Secretary Marcelo Ebrard has announced that the country will actively support U.S. interests in upcoming trade disputes with China. Speaking at a business forum on October 9, 2024, Ebrard outlined Mexico’s comprehensive plan to enhance its manufacturing sector and capitalize on nearshoring opportunities, which involve relocating production closer to the U.S. market.
Ebrard emphasized the urgency of Mexico’s alignment with U.S. economic policies, stating, “There is a dispute between China and the United States, stronger now than it was a few years ago. We now have a plan for a route to follow.”
He articulated that this plan is designed to mobilize legitimate interests in favor of North America, highlighting the importance of cooperation between the two nations.
One of the central tenets of Ebrard’s strategy is to accelerate nearshoring efforts. He noted that moving production from Asia to Mexico presents a significant opportunity for economic growth. “Our second most important mission is to accelerate nearshoring, to take advantage of it one thousand percent,” he asserted.
Ebrard revealed that Mexico’s current domestic content in manufacturing exports stands at less than 20%. The government aims to significantly increase this figure by reducing reliance on imports and enhancing local production capabilities.
To achieve these goals, Mexican officials plan to work closely with individual companies to encourage suppliers and parts manufacturers to relocate their operations to Mexico.
“Our mission is not just to increase our market share but to increase what is produced in Mexico,” Ebrard stated. He emphasized the need for dedicated funding, personnel, and ongoing support for businesses as they transition their supply chains.
Historically, Mexico has been known primarily for exporting oil to the United States. However, in recent years, manufacturing exports—particularly in sectors such as automotive, machinery, and appliances—have eclipsed oil exports.
In a notable development in 2023, Mexico surpassed China as the leading supplier of imported goods to the U.S. market for the first time in over two decades showing Mexico’s growing significance as a manufacturing hub and its potential role in reshaping North American supply chains.
By positioning itself as a reliable partner in North America, Mexico aims to strengthen economic ties with the U.S., potentially leading to increased investments and job creation within its borders.