Asia-Pacific, a Great Opportunity for Mexican ExportsBy María Fernanda Barría | Tue, 03/16/2021 - 16:33
The global geopolitical chessboard considers Mexico as one of the most attractive countries for Asian markets, such as China, South Korea and Japan. “Mexico has become a very attractive country because high tariff levels reduces competitiveness in certain areas but increases competitiveness in others, such as the Mexican economy. There is now greater Mexican participation in production processes,” Ernesto Acevedo, Deputy Minister of Industry, Trade and Competitiveness at the Ministry of Economy, told Expansión.
According to several analysts, the T-MEC is crucial for the recovery of foreign investment in a context where the US is highly dependent on its Asian suppliers. “Part of the reorientation of this strategy is to reach out to US or Canadian companies that have operations in Asian countries, but whose final products are consumed in the US, Mexico or Canada. The approach has been for the region to have a better balance in supply, production processes and presence in Mexico,” Acevedo added.
The outlook for improved relations between Mexico and Asia-Pacific countries with trade interests in North America is positive. According to the World Bank, Southeast Asia’s GDP is expected to grow by 7.1 per cent in 2021, which represents a great opportunity for Mexico.
In addition, Mexico has an Economic Partnership Agreement with Japan that boosts a significant presence of Mexican products in the agricultural industry. According to data from the Trade Office of the Ministry of Agriculture and Rural Development in Tokyo, the top five products Mexico exports to Japan are meat, fruit, vegetables, seafood and processed products (frozen orange juice, tequila). Acevedo said it is essential for Mexico to strengthen its export presence in Japan and East Asia. “There are great opportunities for Mexican agri-food products in the Asian market,” said Víctor Manuel Villalobos Arámbula, Ministry of Agriculture.