Mexico ready for the next renegotiation of the USMCA in 2026

The Mexican economy is at a crucial moment in its history, with the upcoming renegotiation of the Treaty between Mexico, the United States, and Canada (T-MEC) scheduled for the year 2026. This trade agreement has been essential for the country, which has become the United States' main trading partner, surpassing powers such as China and Canada. In this scenario, the incoming administration led by Claudia Sheinbaum and the new President of the United States will need to address a review that will define the commercial relationship between the three countries for the next 16 years. Since March, the Mexican government has been working diligently to prepare for this important review of the T-MEC. The Secretary of Economy, Raquel Buenrostro, has highlighted the collaboration with companies and workers in this process, as well as the joint work with the incoming Secretary of Economy in the transition team. This treaty renewal is seen as an opportunity to consolidate and boost Mexico's economic growth in a global context marked by uncertainty and challenges. The importance of international trade for Mexico is undeniable, especially in a global economic environment characterized by events such as the trade war between China and the United States, the covid-19 pandemic, and geopolitical conflicts. These factors have led to a reconfiguration of global supply chains, increasing production costs and driving Mexico to strengthen its regional economic development. The country's strategic location in North America has allowed it to capitalize on these circumstances in its favor. Mexico has maintained a positive trade balance with the United States, standing out for its export capacity. With record growth in exports, the country has solidified its position as the United States' main trading partner in 2023, surpassing giants like China and Canada. Key sectors such as truck manufacturing, beer, avocado, tomatoes, and strawberries have positioned Mexico as a leader in the global market, while other sectors like heavy vehicles, auto parts, and medical devices also play a significant role in the Mexican economy. The Secretary of Economy has pointed out that Mexico is experiencing one of its best economic moments in decades, with sustained growth that places it as the twelfth largest economy in the world. Additionally, the country has achieved records in employment, wages, and exports, contributing to its attractiveness for foreign direct investment. With $36 billion in investments registered last year and $20 billion so far this year, Mexico stands out as an attractive destination for companies with capital in North America. The administration of Claudia Sheinbaum has set three clear objectives to strengthen the Mexican economy: develop value chains with national content, strengthen existing industrial sectors, and promote regional development focusing on productive vocations. The evolution of the automotive industry, which has experienced a 46% growth during the current administration, is a clear example of the progress made. Strategic sectors such as semiconductors, electromobility, and medical devices are also being promoted to boost the country's economic growth. The upcoming renegotiation of the T-MEC presents a unique opportunity to consolidate progress and ensure a strong and equitable trade relationship with its North American partners. Mexico is in a privileged position to continue boosting its trade with the United States and Canada, strengthening its position as one of the key players in the global economic scenario. The commitment of Mexican authorities to drive economic development and continue diversifying their productive base will be essential to maximize the opportunities that arise in this renegotiation process.