Mexico has 6 years to take advantage of nearshoring

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Council of Global Companies launches seven points for IP and government to generate 4 million jobs and 50 thousand million dollars; AmCham will propose an agenda for 2024

Mexico has a maximum of six years to attract investment via nearshoring, because otherwise the opportunity to create 2 to 4 million additional jobs by 2030 and receive 30 to 50 billion dollars will be lost, according to a private analysis.

The study “Nearshoring, the great opportunity of Mexico”, of the Council of Global Companies (CEEG), outlines seven strategies for “an effective relocation of industries in North America”, which will increase the gross domestic product (GDP) between 1.5 and 2.5 percent and labor productivity from 15 to 30 percent.

To achieve these results, the CEEG document proposes a plan of seven “enablers” to direct multilateral and multisectoral efforts of Private Investors and Government in the development of this project.

The enablers are the training, training and development of personnel; have a sustainable energy system; invest in infrastructure and connectivity; innovation and research; development of suppliers and the chaining of micro, medium and small companies; the improvement of customs processes, and the reinforcement of security in the country.

Presidential proposals

The American Chamber Mexico (AmCham) bet that the next six-year term in Mexico will make North America the most important economy on a global scale and launched a plan to work with all the candidates for the Presidency.

In an interview with MILENIO, Daniel Baima, National President of AmCham, and Pedro Casas Alatriste, General Director, highlighted that “we have the capacity to do it together, governments, industry, private society; In addition, the country is in the best moment to achieve it ”, he affirmed.

He added that they are also generating a bilateral agenda for the next six years that has key pillars, such as security and the rule of law, strengthening the economy and public finances, foreign trade, attracting investment and sustainable growth and innovation: as well as the digital economy.

This does not mean that they stop supporting the current government, because “it is a historic moment that is tied to political changes,” Casas Alatriste explained.

OECD: necessary reforms

On Wednesday morning, Alberto González Pandiella, senior OECD economist, explained at a press conference that nearshoring is a “promise, but also a reality” for growth.

The OECD pointed out that Mexico requires three key reforms to strengthen growth in the face of nearshoring. A fiscal to strengthen collection and public finances through the formalization of companies.

The second to streamline regulation and lower the cost of creating companies, which would support SMEs and new ventures; and a third, social, that adds more women to the labor force, via a network of care and education for infants.

Source: Milenio