Analysis of the first year of TMEC
The North American Free Trade Agreement was revised and updated to meet the new needs and trends in foreign trade of these times; When this change was announced, uncertainty came to international markets as investors in Mexico feared for their investments.
July 1, 2021 marked one year since the Mexico-United States-Canada Treaty (T-MEC) or USMCA for its acronym in English came into force. And despite the great uncertainty and negatives from investors and companies in Mexico, the results in this first year present the TMEC as the salvation of the national economy.
Which have been the results?
The certainty that has been generated thanks to the treaty has allowed us to have large amounts of direct foreign investment in our country and with projects that are looming in the short and medium term.
During 2021, Mexico has become the main commercial partner of the United States. This free access to the US market also makes Mexico a privileged destination to invest, which is why UNCTAD placed it among the top ten countries that attracted the most capital in 2020.
On the other hand, we must not forget the commitments that we have as part of the free trade agreement. It was agreed that Mexico would make the necessary legislative changes to comply with this treaty, and that is a pending task that the next legislature must address.
Thanks to the efforts of the United States to achieve the reactivation of its economy; They will be generating demand for Mexican products in a natural way, where work must be done in the areas of trade facilitation, clean energy, digital development in the manufacturing and product manufacturing processes.
The TMEC will undoubtedly generate greater positive results in the Mexican economy, as long as Mexico generates policies that allow the facilitation of trade with our northern neighbor, in turn working on the development of technology to increase the productivity of the plants and offer new opportunities to attract more foreign investment.
In addition, we must generate equitable growth throughout the Mexican territory since the T-MEC has generated 77% of the national wealth in only five northern entities (Baja California, Nuevo León, Chihuahua, Sonora, Tamaulipas) that concentrate the 83% of Foreign Direct Investment (FDI); 47% of exports; 59% investment in infrastructure.
The needs are clear for Mexico and the vision must change to take full advantage of our proximity to the United States and have the best free trade agreement for the largest international market. The results that are expected for the next 5 years will be good, but it is in Mexico to make those forecasts something very big in real results.