This is an interesting development in light of the first revision of the USMCA (2026) and a unique opportunity for Mexico to strengthen its trade relations with the United States and other global and emerging economies.
Mexico has consistently been one of the largest recipients of foreign direct investment among emerging markets. At the end of 2023, Mexico reported a historic record in foreign direct investment, exceeding $36 billion.
The expansion of U.S. tariffs on imports of Chinese-origin products in strategic industries (solar panels, electric vehicles, batteries, green energy supply chain inputs, ship-to-shore port cranes, steel products, and aluminum products) opens promising avenues for foreign investors in these sectors to look to Mexico.
In addition to the USMCA, which entered into force on July 1, 2020, Mexico's international investment framework includes:
▪ 14 trade agreements
▪ 31 Bilateral Investment Treaties in force.
▪ The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),
▪ The United States-Mexico Income Tax Convention, which governs bilateral taxation between MX-US.
▪ The Organization for Economic Cooperation and Development (OECD) Inclusive Framework on Base Erosion and Profit Shifting
▪ The Inclusive Framework’s October 2021 Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy.
(See: U.S. Department of State 2023 Mexico Investment Climate; Comunicado de Prensa, Secretaría de Economía de México, February 14, 2024)
Thanks to its strategic geographic location, Mexico is at a pivotal moment to reshape its role in global trade dynamics.
For more details on the expansion of Section 301 tariffs on imports from China, see this Update on China Tariffs:
https://lnkd.in/geyk6txB#foreigndirectinvestment#bilateralinvestmenttreaties#Freetradeagreements#internationalarbitration#LatinAmerica#China#globaltrade#disputeresolution
We're hearing lots about the effects of tariffs today but how do tariffs really affect supply chains? Especially with so many global nodes on supply chains that support the US marketplace. Listen here for some interesting information and context.
#Finance101... Tariffs have become a buzzword this election cycle, so it's important that you know how they work. This graphic is simple, but illustrates a key point, tariffs are taxes that are assessed on imports and added to the price, hence they're directly paid by the consumer.
After a review of the Section 301 tariffs, importers of select goods from China face even steeper landed costs. This is what you need to know.
https://lnkd.in/e6FqH7z8
It's another blitz of #tariff articles today for obvious reasons. 👀
Can we direct you to @wallachlori's explanation for the differences between across-the-board and targeted tariffs? Definitely the more you know.
After a review of the Section 301 tariffs, importers of select goods from China face even steeper landed costs. This is what you need to know.
https://lnkd.in/efvpfYhd
After a review of the Section 301 tariffs, importers of select goods from China face even steeper landed costs. This is what you need to know.
https://lnkd.in/girwGzkC
Customs & Import Trade Law
6mohttps://www.whitehouse.gov/briefing-room/statements-releases/2024/05/14/fact-sheet-president-biden-takes-action-to-protect-american-workers-and-businesses-from-chinas-unfair-trade-practices/