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USMCA All the Way

With the recent signing of the USMCA (updated NAFTA) by President Trump it is time for a fresh look at Mexico from a business perspective.

President Amlo of Mexico has proven to be an unrequited disaster for the Mexican internal economy and a complete failure of executive leadership as we discussed last year - and as the most recent data on the Mexican economy has confirmed. Mexico’s GDP will “grow” at 0% in 2020 – and that’s before inflation (the Mexican economy contracted 0.1% in 2019, its worst result in a decade), and gross fixed investment has collapsed to the lowest level since the 2009 global economic crisis.

The export driven external Mexican market on the other hand is doing very well as China continues to experience major strategic and tactical challenges, as the Mexican peso remains stable, and USMCA advancing instills greater clarity and confidence using Mexico as a manufacturing and sourcing platform. Even Chinese companies are setting up shop in Mexico.

Mexico trade and business continues to be of strategic importance to Texas. Both the Dallas Fed and the San Antonio Fed track trade and business activity between Texas and Mexico quite intensely.

SMU’s Texas - Mexico Center in DFW also performs thorough analysis of pretty much all the publicly available data on the strong and increasing business between Texas and Mexico - that is often not obvious when looking at national level trends.

Mexico’s importance as a strategic resource has been clearly confirmed by the USMCA free trade agreement, and businesses need to take advantage of it to remain competitive.

Please email or call us so we can assist you in taking advantage of Mexico and USMCA for your sourcing, manufacturing, supply chain, and logistics needs.

Best regards,

Andrew Barker MBA

(469) 403-4944

Middle Market Advisory LLC

We Like It Complicated

Advisory – Consulting – M&A

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Middle Market Advisory LLC

6600 LBJ Freeway

Suite 150

Dallas, TX 75240

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