Mexico, the United States and Canada agreed to strengthen regional supply chains as part of the Trilateral Free Trade Agreement (USMCA).
In a joint statement, the three nations stated Covid-19 showed global value chains lacked foresight and standardized criteria for dealing with emergency situations. In a context of high interdependence, it was enough for one link to be uncoordinated to paralyze the rest of the supply chain.
At the global level, such disruptions had harmful effects not only on economic activity and employment levels, but also on prices and supply of essential products including food, medicines and medical equipment.
Based on the premise workers´ health and safety comes before any economic factor, the three countries recently established some analysis roundtables to agree on actions and take a standardized definition of which productive sectors are critical or essential.
Mexico´s Economy Secretariat will lead the work in Mexican government agencies in order to anticipate and react in a coordinated manner, taking into account that the three northern nations make up one of the most interconnected trade regions in the world.
Considering that industrial relocation is mainly due to the need for productive sectors to reduce risks, decision taken, standardized criteria and established protocols, will strengthen the region’s competitiveness, making it even more attractive for investment.