Mexico takes the US side in potential trade battles with China and seeks to boost local content

MEXICO CITY — Mexico’s top economic official has suggested his country will actively side with the US in the impending trade battle with China.

“There is a dispute between China and the United States, which is stronger now than a few years ago,” Economy Minister Marcelo Ebrard said at a business forum on Tuesday. “And we now have a plan for a route to follow.”

“What will be the main idea, the main design of that route?” Ebrard said. “To mobilize all legitimate interests for the benefit of North America.”

For example, he said it would be in Mexico’s own interest to welcome nearshoring, which typically involves moving production from factories in Asia to Mexico.

“Our second most important mission is to accelerate nearshoring and benefit a thousand percent from it,” said Ebrard.

He said that Mexico’s domestic share of industrial exports is currently less than 20%, and that Mexican officials are examining “how we can reduce all the imports that we have, that is, how we can reduce the domestic share in every possible way.” can increase.”

He said the government would work with individual companies to get suppliers and parts manufacturers to also move to Mexico.

“Our mission is not only to increase our market share, but also to increase production in Mexico,” Ebrard said. “It is imperative that we work with every company, we must commit funding, staff, perseverance and follow-up to get those numbers up.”

Mexico once largely exported oil to the United States, but now manufacturing exports of products such as cars, trucks, machinery and appliances dwarf the oil trade.

In 2023 it will be the first time in over twenty years Mexico replaced China as the largest supplier of imported products to the American market.

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