Forum

Register

Mexico's Automotive Industry Post Covid-19

Leo Guzman-Anaya1
University of Guadalajara, Mexico
Member of PECC Mexico

 

Background

Mexico’s automotive industry experienced a wave of rapid growth after the 2008 financial crisis. It now ranks as the fourth major exporter and the seventh global producer of automobiles and fifth producer of auto parts. This position was achieved primarily because the industry has been characterized by global production networks with fragmentation of their production processes, where companies have searched for locations that favor cost optimization and manufacturing quality. In this sense, Mexico provided a developed and functional productive infrastructure, human capital endowment, and a growing internal market which stimulated the arrival of automotive Original Equipment Manufacturers (OEM) from north America, Europe, and Asia. Also, the favorable geographical location that provide entry to the north American market and a network of 13 Free Trade Agreements (FTA) with preferential access to 50 economies position Mexico as a preferred location for investment projects as reflected in an inflow of Foreign Direct Investment (FDI) in the automotive industry2. Between 2008 and 2019, FDI flows to the industry experienced an annual average growth rate of 11.6% in real terms3.

Continue reading
  1272 Hits

Trade and Connectivity in the Post-COVID-19 World

Pascal Lamy
President of the Paris Peace Forum of the French Committee of the PECC
Former Director General of the WTO
&
Eduardo Pedrosa
Secretary-General, Pacific Economic Cooperation Council*

 

Even as some economies begin to relax their lockdowns, it is too early and too much is unknown to realistically assess the economic impact. The consequences of this crisis have been and will be felt across every aspect of human life. Although many uncertainties remain, whether sanitary, economic, social or political, we must make our best efforts to figure out what a post-crisis life might look like and prepare for it.

Continue reading
  3461 Hits

You can also log in with your social media account by clicking the icons below

 

Most Popular Post

Gary HawkeMember of the Board, NZPECC [The views expressed herein are Author's own and made in reference to a commissioned research conducted by Coriolis, NZ]   “Any discussion today of internati...
Andrew ElekAustralian National University (ANU)   Some of the foundations of APEC were laid more than 40 years ago.  By 1989, the careful consensus building, based on the achievements of ASE...
Hugh StephensVice Chair, CANCPECFellow of the Canadian Defence and Foreign Affairs InstituteExecutive-in-residence at the Asia Pacific Foundation of Canada [Published in iPolitics, January 14, 2014] T...
Hugh Stephens, Vice-Chair, CANCPEC Don Campbell, Co-Chair of PECC and Chair, CANCPEC Published: December 12, 2013 in Canada-Asia Agenda Abstract: On October 18, Canada and the EU announced an agreemen...
Federico Macaranas Professor, Asian Institute of Management, Manila, the Philippines The BALI airport temporarily closed for commercial flights for security reasons, even as a new $300-million termina...