Biden’s America: a sizeable opportunity for Mexico

The incoming Biden administration presents a plethora of opportunities for cooperation and economic integration between Mexico and the United States.

We believe that the challenge for Mexico is to anticipate new US policies while fostering and modifying the current ones.

Mexico – with its deep economic integration, embedded cultural ties, and broad shared values – is thus positioned to join the US as a global partner, particularly with an eye to Latin America. 

In terms of economic integration, Mexico could make the most of a Biden administration by pursuing the following agenda:

• Manufacturing: tougher China stance along with the post-covid world where near-shoring & re-shoring leads to investments in Mexico.
• Energy: President Biden’s $2 trillion plan could be a boon to the whole region, if Mexico ramps up renewable energy.
• Technology: maximizing regional knowledge flows for efficient technological transfer, promoting efficiency across several industries.
• Entrepreneurship: regional ecosystems across North America facilitate and promote innovation, yielding benefits to the region.
• Infrastructure: setting the basis for development, especially as economic recovery is needed.
• Human Capital: Mexico’s young population is eager for opportunities, education, and integration not only into North America but the global economy.
• Tourism: Covid-19 shall pass and Mexico is poised to be an attractive travel destination once again.

In 2019, Mexico and the US traded over over $677 billion worth of goods and services. This amount not only reflects the strength of the economic relationship, but also the strong cultural ties between both nations.

With a more congenial US administration, and a USMCA on full speed, Mexico-US trade numbers are only set to go up. Mexico’s vibrant youth encapsulates the hopes of a nation that wishes to be seen globally as reaching its full potential.

Mexico has what it takes to navigate a complex bilateral relationship with the US, and become a partner on issues that matter, from fighting climate change, to fostering economic cooperation, to tackling and preventing future pandemics, to promoting geopolitical stability, to defending human rights.

A more fruitful relationship between Mexico and the United States would therefore extend beyond North America to benefit the entire world.