The T-MEC, a trilateral trade agreement between Mexico, the United States and Canada (T-MEC) two years after it was signed has allowed our country to emerge stronger, especially if it manages to continue taking advantage of the situation derived from the pandemic and the conflicts geopolitical, despite the national challenges, said Sergio Pérez, executive director of Corporate Accounts in Latin America at Newmark.

In his opinion, “Mexico has negotiated the United States-Canada-Mexico trilateral trade agreement very well. The Mexican negotiators have played a good role, so their cards are very strong with the food dependency of the United States, Mexico can play an important role. Before, our country was just another manufacturer, today it is the main manufacturer, and we must use that to our advantage”.

For Mexico, the T-MEC has been to be in the right place and at the right time, that is, it has benefited from having the trilateral agreement, and in the real estate issue, a historic absorption has been observed since 2021 with a demand for industrial buildings that had never been registered.

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If we compare figures from 10 years ago, the average absorptions of 1.4 million m², indoors, profitable and class A were exceeded in 2021 with records that more than doubled.

This growth does not include the automotive and electronics industries, which have not grown in this proportion as they have been greatly affected by the lack of microchip supplies, due to insufficient production in Asia as a result of the pandemic.

The executive highlighted that the benefits that the T-MEC has brought to the national industry, regardless of the boom in real estate demand, have been the power to supply raw materials to foreign plants already installed in the country; the level of training of employees, since these companies raise the educational level; that part of the supplier stays; more qualified personnel and the economic benefit for salaries and taxes.

Due to the pandemic and geopolitical conflicts, there was a need to meet the demand from the United States, which grew by 20% post-pandemic and due to the suspension of the supply chain by China. Consequently, nearshoring is a trend that is here to stay for at least the next 10 years.

The director commented that “the issue of China will not have an easy or short solution. I do not see a return to earlier times when China became the factory in the United States, so I see a long-term effect for Mexico and the wave of arrival of companies from Asia due to nearshoring that will continue for at least three years and then it will continue gradually, not at the levels we see now, but we do see three years of boom and seven more years of constant growth.

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He added that this will bring parallel benefits for some Latin American nations, mainly for those that have trade agreements with the United States such as Costa Rica, without forgetting that 80% of the product manufactured in Latin America leaves Mexico.

In order for Mexico to continue with its privileged position in the T-MEC, the Newmark executive emphasized the country's challenges, such as energy and security.

Infrastructure is also another challenge to overcome, mainly because the country is facing

in the face of a historic situation and, if as a country we know how to take advantage of it properly, we will come out stronger. Sergio Perez said.

In Solili you can consult industrial warehouses available in Ciudad Juárez, Tijuana and Monterrey

Original note