Mexico’s most popular but divisive leader, López Obrador, left his political protégé more than just the presidential sash.
She takes over a country and economy that is doing well in some sectors while confronting serious difficulties in others.
From the standpoint of her administration, the good news is that Mexico has improved its commercial standing with its northern neighbor, overtaking China as the United States’ largest trading partner.
“Nearshoring,” or the movement of American and Asian businesses from China to northern Mexico in order to avoid the harsh US tariffs on Chinese goods, has benefited Mexico.
Before the election, former Mexican trade negotiator Juan Carlos Baker Pineda told me that Mexico has always been a desirable destination for capital flows due to our geographic location, our free trade agreements with North America, and our workforce.
However, in recent years, there has been a growing perception that a foreign company must establish some sort of presence in Mexico in order to conduct business with the United States.
Citing Amazon’s recent announcement that it will invest $5 billion (£3.8 billion) in Mexico over the next 15 years and a further $1 billion investment by German automaker Volkswagen, he says the prognosis is positive. Additionally, Mr. Baker Pineda mentions encouraging intentions from Chinese, Japanese, and South African companies.
