The Challenges and Opportunities of Nearshoring in Mexico

Mexico was named last month as is the US’s largest trading partner, displacing China. Learn more about doing business with our neighbor to the south with Robert M. Kossick, Ph.D. , International Trade Attorney and LCB, Harris Bricken Silwoski, LLP. He is speaking on Tuesday, August 22nd, 11:00 am at ASD Market Week, on the Las Vegas Convention Center’s Central Hall stage on The Challenges and Opportunities of Nearshoring in Mexico.?

Kossick’s law firm was, “Very engaged in China helping small and medium-sized enterprises (SME’s) to do business and manufacture products there. However, post -COVID, we have seen a lot of firms moving operations to Mexico.”??

In the 1980’s and 1990’s Mexico engaged in investment in manufacturing capabilities, infrastructure and educating its workforce. Then China entered the World Trade Organization and, putting it mildly, most manufacturing investments previously earmarked to Mexico moved there. Now, post-COVID, the pendulum has swung back, and many small and medium enterprises, (SME’s) are rethinking their options to manufacture or source products in Mexico.?

Kossick said, “We’ve seen an uptick in Chinese policies and challenges around Intellectual Property (IP), illegal subsidies to domestic companies, foreign investors and talent leaving the country, more regulation and some harassment of foreign companies who have chosen to stay and manufacture their products in China.”??

Those and other reasons have Mexico looking more attractive to US importers these days, especially to SME’s given its proximity to North America. While Mexico may not have as much contract manufacturing capacity, and has challenges with cargo security and IP theft, the country is putting considerable resources towards increased worker education, infrastructure, and building more industrial parks.??

Mexico has built up its capabilities in the northern part of the country and Kossick continued, “One of the plans in the south of Mexico is building the Interoceanic Corridor. The goal is to create a multimodal pathway (railways and roads) through the Isthmus of Tehuantepec to compete with the Panama Canal, along with port improvements on each ocean, along with some new industrial parks.”??

Want to learn more? Join us on Tuesday, August 22nd, 11:00 am at ASD Market Week, on the Las Vegas Convention Center’s Central Hall stage on The Challenges and Opportunities of Nearshoring in Mexico.?

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