It appears that Mexico is aligning itself with the United States and Canada to restrict the influx of Chinese imports into North America.
Commentary
As Mexico City gets ready to reassess its trade agreements with the United States and Canada, the focus seems to be shifting towards China.
After the three North American nations revamped the North American Free Trade Agreement (NAFTA) into the United States-Mexico-Canada Agreement (USMCA) in 2018, a review was scheduled for 2026. Mexico has clearly stated its intention to prioritize discussions regarding China’s trade practices during these talks.
The new president of Mexico, Claudia Sheinbaum, along with her deputy trade minister, Luis Rosendo Gutierrez, have emphasized that Mexico’s primary concern is its heavy reliance on Chinese imports and the importance of bolstering domestic supply chains. This aligns closely with the rhetoric coming from Washington about U.S. interests. Essentially, Mexico has signaled its readiness to collaborate with the United States and Canada to restrict Chinese trade access to North America.
From Sheinbaum’s perspective, Mexico’s issue with China has two main facets. Firstly, the increasing quantity and sophistication of Chinese imports have led to Mexico becoming more dependent on China. Secondly, there is a perception that China is using Mexico as a gateway for its products to reach the United States, possibly to circumvent the tariffs imposed on Chinese imports by both the Trump and Biden administrations.
While Gutierrez denies the claim that Mexico serves as a “bridge from Asia to the United States,” it is evident that there are numerous Chinese operations in Mexico. Despite Mexican sales in the United States surpassing those of China last year, many of those products contained Chinese inputs and originated from Chinese-owned or operated facilities in Mexico. The Mexican government has expressed a strong desire to replace these Chinese facilities with those of U.S.-based companies, although implementing such a transition has proven challenging thus far.
Although formal discussions with Washington and Ottawa, Mexico’s USMCA partners, have been limited, informal outreach has been made to the U.S. business community, particularly to industries such as automotive, semiconductor, aerospace, and electronics. The goal is to identify alternatives to Chinese operations in Mexico and to reduce reliance on Asian imports, particularly from countries like Malaysia, Vietnam, and predominantly China.
Sheinbaum and Gutierrez likely aim to attract U.S.-based companies that are actively seeking to diversify away from China, thereby solidifying Mexico’s position within the USMCA and lessening its current dependency on China.
Leading up to the 2026 USMCA review, Mexico is expected to engage in more formal discussions with Washington and Ottawa. Given the anti-China stance demonstrated by the United States and Canada through tariffs and other trade restrictions, Mexico is likely to find supportive partners in its endeavors. It seems inevitable that China will face repercussions as a result.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
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