The Impact of Nearshoring on U.S.-Mexico Economic Relations

Nearshoring Boosts Economic Ties Between the U.S. and Mexico

CIUDAD JUÁREZ, Chihuahua, Mexico – Nearshoring is strengthening the economic relationship between the U.S. and Mexico, as companies seek to reduce dependency on China by relocating manufacturing operations closer to North American consumers. This strategy has led to increased trade and investment between the two countries, supporting jobs and economic growth on both sides of the border.

Wisconsin’s trade with Mexico has seen significant growth, with imports reaching $6 billion and exports $4.3 billion in 2023, supporting over 86,000 jobs in the state. Products such as medical devices, electrical equipment, and motor vehicle parts are among the key imports, while agriculture and food products are significant exports.

Despite the loss of some U.S. manufacturing jobs to Mexico, the overall trade supports employment in both countries. The ongoing U.S.-Mexico-Canada Agreement (USMCA) facilitates duty-free trade, enhancing the appeal of nearshoring for companies looking to optimize their supply chains and reduce costs.

Resumen en Español:

El nearshoring está fortaleciendo la relación económica entre EE.UU. y México, ya que las empresas buscan reducir la dependencia de China reubicando sus operaciones de manufactura más cerca de los consumidores norteamericanos. Este enfoque ha aumentado el comercio y la inversión entre ambos países, apoyando el crecimiento económico y los empleos en ambos lados de la frontera. El acuerdo USMCA facilita el comercio libre de aranceles, mejorando la viabilidad del nearshoring para optimizar las cadenas de suministro y reducir costos.