Prognostications are that the motor that will pull the Mexican economy forward through the remainder of the term of current president Enrique Peña Nieto will be the country’s manufacturing for export sector.
The amount of goods and services produced for foreign consumption in Mexico will continue to grow over the course of the coming year, and will reach the level of a ten percent increase in 2016. Whereas, at one time, Mexico’s exports, in the majority, consisted of basic commodities such as crude oil and agricultural items, today eighty percent of the country’s sales abroad are comprised of manufactured goods. Mexico is now a global player in the automotive, aerospace, electronics, medical device and other highly competitive industries. Given their position on the front lines of foreign trade, the Mexican customs brokers association feels confident that it is prepared to handle the inevitable growth in activity in their business.
Victor Gamas Luna, the titular head of the Mexican Customs Brokers Association, believes that the scheduled spending over five million US dollars during the remainder of Peña Nieto’s tenure in office will do much to facilitate the ease with which the anticipated increased foreign trade flows. Gamas also sees the probable ascension of Mexico to the Trans Pacific Partnership (TPP) trade agreement prior to the end of 2016 as another reason why it is a common expectation among members of the Mexican Customs Brokers Association that they will be busier in the coming years. Some economists believe that Mexico’s full integration into the TPP, as well as the continuing positive effects of the free trade agreements that are already in place with forty-four trading partners, as well as twenty-eight reciprocal investment accords that are in place, will drive a ten percent per annum increase in exports for the next decade.
Although the leader of the Mexican Customs Brokers Association recognizes that Mexican exports account for just about sixty-one percent of the nation’s GDP, the expectation that in addition to occupying a position as a major trading nation, Mexico will also gain greater credibility as an international logistics platform. This will eventually result from the emphasis that is currently being placed on upgrading the nation’s sea ports, airports, and highways, as well as bolster the ability of its Mexican customs brokers to serve a larger, and more varied, clientele in the processing of their import-export activities. An example of such improvements currently underway is the development of a new international airport in Mexico City. An amount approximating ten billion US dollars is being spent to install infrastructure that will enable six additional aircraft to be able to take-off and land simultaneously. The expansion of all types of trade related physical infrastructure will be required to handle increased traffic. Although manufactured exports of all kinds have increased as Mexico’s industrial capacity has grown, it is noteworthy that the country rhasisen to become the largest producer of passenger vehicles in Latin America and the eight largest producer of automobiles in the world.
Read the primary source for this post in its original Spanish at Dinero en Imagen.
Image Credit: Foster + Partners