Mexico has been increasing its presence as a key exporter to the United States, marking what could be a major shift as the US-China trade war, the pandemic and sanctions on Russia disrupt supply chains.

Carlos Caspistán, David Hauner and Claudio Irigoyen strategists at Bank of America (BOFA) point out that there are signs that the so-called “offshoring boom” has begun for the southern neighbor of the United States.

Check here: The T-MEC and the development of the automotive and auto parts sector

Mexico has been increasing its share of US imports in a key group of products such as leather, plastic, wood, paper, textiles, iron, steel and glass, sectors that saw production shift from China in the early 1990s. 2000 when the Asian nation joined the World Trade Organization (WTO), BOFA strategists indicated.

According to this analysis, it could be the beginning of the reversal of the "China shock" for Mexico, which would benefit potential production and the peso. The fact that China is losing its share of US imports opens important opportunities for Mexico.

Of interest: Ciudad Juárez is in the border market with the highest numbers of industrial construction

According to Bank of America, US imports of Mexican manufactured goods have reached an all-time high, with an increase of more than 70% over pre-pandemic levels, which reflects direct evidence of the “nearshoring” that is taking place.

Strategists also noted the stability of Foreign Direct Investment in recent years, despite the pandemic and political uncertainty.

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

Original note