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The United States and Mexico: Building and Designing Things Together – Forbes

Staff — Thu, 25 Feb 2016 18:34:57 +0000

14,800 container trucks cross the U.S.-Mexico border each day. They carry much of the $1.6 billion in daily trade that makes Mexico the third largest economic partner and the second largest export market of the U.S., and that makes the U.S. Mexico’s top economic partner. Mexico is the largest international buyer for some 23 U.S. states, and the U.S. buys about 80% of Mexico’s exports.

These facts indicate why Vice President Biden, three cabinet secretaries and other U.S. officials will be in Mexico City February 25 meeting Mexican counterparts, led by Secretary of Finance Videgaray, for the U.S.-Mexico High Level Economic Dialogue. Biden and others will check progress on the dozens of areas where the two governments have been working since 2013 to make it less costly and more efficient to trade between us and to build things together as we compete with other global producers.

Over the past 20 years, Mexico and the United States have developed efficient production chains that crisscross the border with materials and know-how flowing back and forth as products are built. A distinctive feature of this network is that when the U.S. buys a finished manufactured product from Mexico a large part of the content (estimated at up to 40%) is made up of materials from the U.S. – more so than with any other U.S. trading partner in the world. Thus, simple trade figures do not tell the real value proposition of what is being made by the two countries in a combined effort.

That is part of the reason why the Vice President, Secretary Videgaray and others are so interested in improving the efficiencies in the commerce between the two countries. But that is not the full picture: up to a million people cross the border legally as part of their daily business; over 37 million tourists from the two countries visit each year; and U.S. companies have invested more than $100 billion dollars in Mexico while Mexican companies have invested some $18 billion in the U.S. This massive relationship touches the daily lives of millions on both sides of the border.

Source: The United States and Mexico: Building and Designing Things Together – Forbes

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Made in Mexico: An emerging auto giant powers past Canada – The Globe and Mail

Staff — Tue, 17 Feb 2015 17:42:57 +0000

When Salvatore Lauria started work at Autotek in Puebla, Mexico, there were only a few cars in the company parking lot. Now, 15 years later, the parking lot is full and the vehicles have spilled over on to the neighbouring soccer field.

There are more cars today because Autotek has expanded eight times since it began stamping out bumpers and radiator supports in 1991.

“We often talk about all the expansions we have done in our facility, but we often forget we have had to make four expansions in our parking lot,” says Mr. Lauria, general manager of the plant, which was the first factory Magna International Inc. built in Mexico.

Autotek is a prime example of how Magna is taking advantage of a remarkable growth spurt in the auto industry in Mexico. From that single plant, the Canadian auto parts giant has grown to the point where it now operates 29 plants that employ 24,050 people, more than in any other country where Magna makes parts.

Magna is riding a tectonic shift that is transforming the global auto industry as Asian and European car companies pump billions of dollars of investment into a country perfectly positioned to supply eager North American car buyers and the future growth market of South America.

The shock waves from that shift are battering Canada, which for decades stood as a strong No. 2 behind the United States when it came to North American vehicle production, but has tumbled to No. 3 behind Mexico. One-fifth of the jobs in vehicle assembly and auto parts have vanished in Canada since 2001.

via Made in Mexico: An emerging auto giant powers past Canada – The Globe and Mail.

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How to Boost Border Competitiveness? Just Ask the Folks There.

Staff — Tue, 10 Feb 2015 22:11:51 +0000

For years, the United States’ southern border with Mexico has provoked a range of fears, from terrorism and drugs to overwhelming numbers of unauthorized immigrants, prompting a security-first and often security-only approach to border management. Fear-based rhetoric may resonate in the echo chambers of Washington DC, but it feels wholly out of touch to most (though not all) residents of border communities.

Thankfully, with U.S.-Mexico trade at historic highs and growing faster than trade with any other major trading partner, it is increasingly difficult to ignore the importance of safe and efficient border management to the regional economy. U.S.-Mexico trade is now valued at well over a half trillion dollars per year, 80 percent of which crosses the U.S.-Mexico land border. This trade supports around six million U.S. jobs, and systems of co-production in manufacturing allow companies to combine the comparative advantages of the United States and Mexico, boosting the competitiveness of North America as a whole.

via How to Boost Border Competitiveness? Just Ask the Folks There..

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How Will Mexico’s Economy Perform in 2015?

Staff — Mon, 09 Feb 2015 18:03:10 +0000

Mexico is being squeezed in a difficult global economic environment. In mid-2014 Mexican billionaire Carlos Slim said “Last year (growth) was low, I think that this year it will be relatively low too, but I think next year will be much better.” Expecting Mexico’s highly touted set of structural reforms to help attract a new wave of investment, Slim, the majority owner of Mexican telecom giant America Movil, said, “I hope that next year we will set the pace for growth for the next four years.”

Unfortunately, falling oil prices and a difficult global economic environment have put a damper on expectations for Mexico’s economy. Mexico’s peso fell by 13.1 percent during the course of 2014.

via How Will Mexico’s Economy Perform in 2015?.

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