US and Mexico Need Each Other to Compete

Commentary by Doug Donahue

A recent article in the The San Diego Union-Tribune highlights the importance of the US joining Mexico and Canada in negotiating treaties as a unified bloc in order to leverage its competitive position in international markets. In the article, the co-authors* plead US policymakers to expand trade cooperation across the region: “It is time for US political leaders to recognize what our private sector already understands: the importance of Mexico to US prosperity.”

Entrada’s North America-based clients have certainly understood this importance, and are capitalizing on the benefits of Mexican-US-Canadian cooperation every day. Our clients profit from the cost-competitiveness of Mexican labor coupled with the R&D investments and market demand of the US and Canada. Moreover, they successfully export their products not just to America, but throughout the globe.
Nearly 20 years after the passage of the North American Free Trade Agreement (NAFTA), the relationship between Mexico, the US and Canada works because each country brings an essential element to the partnership. Canada brings an abundance of energy and natural resources. The US brings technological know-how, financing and a huge consumer market. Mexico offers affordable labor, and a growing and increasingly demanding domestic market. To maintain competitiveness long-term, however, strong political will be needed to negotiate and collaborate as a unified bloc, say US officials.
There are some in the US who fail to recognize the many benefits of having Mexico as a strong trading and commercial partner … to their own detriment.

Source: San Diego Union-Tribune

* Kay Granger, congresswoman from Texas who chairs the House State and Foreign Operations Appropriations Subcommittee; John Negroponte, former deputy secretary of state and former US ambassador to Mexico who now chairs the Council of the Americas; and Charles Shapiro, former US ambassador to Venezuela, and president of the Institute of the Americas think tank

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