In early 2023, US imports of goods from Mexico surpassed those from China, making Mexico the main origin of goods imported to the US for the first time in modern trade history. Mexico has long been a key US trade partner, with total US-Mexico trade growing 7.8-fold since the North America Free Trade Agreement (NAFTA) was enacted in 1994. Recent world events have amplified the importance of the US-Mexico trade partnership. Amid global supply chain problems and geopolitical tensions, the US has sought to strengthen its regional economic ties. This trend, commonly known as nearshoring, is reflected in President Biden’s 2023 trade policy agenda, which lists supply chain resilience and strong regional bonds among its top priorities.
In response to the growing importance of US-Mexico trade, the Mexico's Competitiveness as a Strategic Trade Partner report provides a primer on Mexico’s competitiveness as a US economic partner. By combining findings from the Milken Institute’s Global Opportunity Index (GOI) with Mexican state-level data, we provide a unique perspective on Mexico’s strengths and weaknesses at the national and sub-national levels. Our analysis is valuable for investors considering expanding their Mexican footprint, as well as policymakers interested in strengthening US-Mexico relations.
The report covers three main topics:
a global assessment of Mexico’s strengths and weaknesses compared to other US key trade partners;
analysis of trends in Mexico’s growth, trade, and investment across key sectors and manufacturing sub-sectors; and
a state-by-state overview of Mexico’s performance as measured by trade, investment, and factors impacting states’ attractiveness to investors.
The conclusion discusses the implications of the report’s findings on the potential for the US to redirect its supply chains, and increase its investment, into Mexico.
LOS ANGELES – April 11, 2017 – The Milken Institute today announced the appointment of William Lee as Executive Director and Chief Economist, based in Santa Monica, CA. In this role, Lee will be responsible for analyzing U.S. and global...
Today, all 50 U.S. states have a video game industry presence, and 21 of those states offer financial incentives. California has a considerable lead, accounting for 27 percent of the nation’s interactive entertainment industry, but...
The Milken Institute has published various reports evaluating urban performance. In addition to its flagship Best-Performing Cities series for both the US and China, the Institute has published two Regional Performance over Time papers to...
What factors distinguish cities that can withstand an economic downturn, or rebound afterward, from those that cannot? Are these factors unique to successful cities, or are there best practices that can be adopted by peer cities? Building...
As the world's second-largest economy after the US, China has attracted numerous businesses to vie for its sizable and fast-expanding markets. In recent years, these businesses have extended their footprints beyond the major Chinese cities...
Since its inception in 2019, the US International Development Finance Corporation (DFC) has been instrumental in mobilizing capital to promote development and enhance lives globally, offering a stark contrast to the failures of...
LOS ANGELES—The Milken Institute’s annual Best-Performing Cities index for 2016 shows that tech is still tops, as cities that excel in innovation drive the nation’s economic dynamism. With an ecosystem for entrepreneurship, San Jose, CA...
Submitted electronically To: The Honorable Shalanda Young, Acting Director, Office of Management and Budget From: Richard Ditizio, President and Chief Operating Officer, Milken Institute About the Milken Institute: For the past three...
Richard Ditizio is the CEO of the Milken Institute, responsible for all pillars and departments across the organization's global footprint. Under his leadership, the Institute expanded its staff and programmatic work to Asia, Europe, the Middle East, and Latin America.
If we required a reminder that the United States is more fully integrated into global economic and financial markets than ever, we received it by way of the latest turmoil in U.S. equity markets. By many measures, valuations had become...
In the aftermath of the 2007-2008 financial crisis, new legislation and regulations have pressured banks and insurance companies to reduce their size, leverage, and riskier lines of business in order to avoid another too-big-to-fail debacle...
The COVID-19 pandemic not only exposed social and economic weaknesses throughout California, but highlighted the deficits in infrastructure, housing, and workforce development that have exacerbated inequities over time. A full recovery will...
In early 2023, US imports of goods from Mexico surpassed those from China, making Mexico the main origin of goods imported to the US for the first time in modern trade history. In response to the growing importance of US-Mexico trade...