According to a Reuters report in late April,Mexico and China have announced a new accord that supports mutually beneficial bilateral commerce,including business deals and investments worth upwards of $560 million. This is bound to be good news for the country’s economy – and for Mexico real estate.
The two countries signed business deals worth at least $300 million and made new investment promises totaling at least $260 million,according to Mexico’s Economy Ministry. The new agreements with China are designed to put an end to “unfair Chinese practices,” including flooding the Mexican shoe market with cheap imports.
“This new relationship looks to answer the imbalance that affects Mexico and establish a basis for more balanced and sustainable trade in the long term,” stated the ministry in the report.
China is currently Mexico’s third largest export market outside of North America,and both countries compete to gain the upper hand in selling manufactured goods to the U.S. market. Although historically modest,Chinese investment in Mexico has increased substantially this year and shows promise of continuing to grow in the future,as both countries move away from their dependence on the U.S.
“It’s a fact that the most dynamic region on the planet is Asia,” shared Mexico’s Undersecretary for Foreign Trade,Francisco de Rosenzweig. “Latin America and global businesses with new investments are looking to make the most of the comparative advantages in China.”
This growing reality is behind current plans for Mexico to initiate a trade mission to China later this year. Although less than 2 percent of country’s exports currently head to China,with 80 percent bound for the U.S.,Mexico is expected to ramp up its Chinese exports over the coming months.
The announcement of Mexico and China’s new investment deals came on the heels of the recent G20 meeting held in the Mexican resort town of Puerto Vallarta,where representatives worked to develop measures that would protect and bolster open markets and reduce protectionist measures.