CNBC reported last month that Mexico is working to reduce its economic dependence on the United States in a move that is expected to make Latin America’s second-largest economy even stronger over the coming years. Outgoing Mexican President Felipe Calderon cited weak economic growth in the U.S. over recent months as the main reason for the shift.
“We are expecting very low growth and recovery in the American society and economy,” Calderon told CNBC. “We need to be prepared and that is why Mexico is looking for new markets and we’re trying to reduce our dependency on the United States.”
Mexico is currently the third largest trading partner for the U.S. and shipped nearly 80 percent of its goods across the country’s northern border in 2011. Despite this strong partnership,there is little doubt that Mexico’s economy is tied to the performance of the U.S. economy,which shrank by more than 6.5 percent in 2009 due to fallout from the global financial crisis.
“The Mexican economy is linked with the American economy,” Calderon stated. “However,our strategy is to diversify our relationship. In that sense,we’re looking to do business with Europe,we’re looking to do business and trade with Asia… I know that we are able to connect directly our economy with powerful economies here in Asia.”
In addition to exploring ways to increase trade with Europe and Asia,Mexico is also working on a variety of reforms within its own borders,including reducing tariffs and a variety of other red tape,and investing in Mexico real estate infrastructure to promote private investment throughout the country.
According to the CNBC report,Mexico received an impressive $4.37 billion in foreign direct investment during the first quarter of 2012 and the U.S. accounted for 37.3 percent of this inflow,followed by Spain at 28.7 percent and Luxembourg at 9.1 percent.