Since the 1994 signing of the North American Free Trade Agreement (NAFTA),Mexico has experienced a boom in its industrial sector,prompting rapid economic growth,better-educated workers and plenty of investment opportunities. Today,Mexico produces a wide variety of goods,including automotive parts,sophisticated electronics and aircraft engines.
Since 2003,automotive exports have increased by more than 150 percent and electronics exports have increased by 73 percent. The heartland of Mexico real estate is fast becoming the new center for the most rapid growth of industrial output in the country,in part because states like Guanajuato,Jalisco and Puebla are situated close to the nation’s major academic institutions in Mexico City. Also,in the state of Mexico,manufacturing output increased by MXN400 billion in 2011 alone,prompting both state and federal governments to invest substantial amounts in infrastructure,upgrading the rail system and seaports.
This growth in Mexico has meant good things for U.S.-Mexico business relations,with roughly $1.4 billion in two-way trade taking place each day between these two nations. For example,upwards of 15,000 American corporations now have operations in Mexico,which is also the second-largest U.S. export market and third largest trading partner. In addition,millions of Americans have made Mexico their permanent home and tens of millions visit each year.
Also of note,Mexico has emerged as the world’s number one producer of flat screen televisions,with more than $300 billion in manufacturing exports last year. In 2012 investors also poured five times the amount of money into Mexican stocks and bonds than they did into Brazil,and Mexico is the second-largest supplier of oil to the United States.
President Enrique Peña Nieto is also playing a key role in Mexico’s efforts to further strengthen relations with the U.S.,showing strong determination to take on important economic reforms that will create a Mexican economy that is more open and competitive,which will ultimately lead to even more impressive future economic growth. Since taking office in late 2012,Peña Nieto has already worked to clean up the powerful teacher’s union in Mexico and is currently working on a set of popular reforms that will overhaul the nation’s telecommunications sector,tax code and energy sector.
But the U.S. is not the only nation that values its relationship with Mexico. In fact,Asia has been deepening its relationship with Latin America’s second largest economy,with China offering to invest in a new high-speed rail initiative and exhibiting a rapidly growing interest in Mexico’s natural resources.