Route map to the economy 2025 to North America Region
Efrain Omar Corona Sastré
Empowering CEOs & Finance Directors | Founder & CEO at Capital Flow Consulting | Raising Capital for Investment Projects via Private Equity & Debt | Specializing in M&A, Build to Suit, and Business Development
Wow, it's amazing to write for my readers. It has been a long time since the middle to 2024 since my last article. In this period of time we have live to many changes in the world, since elections in the United Estate of America to have changes in the geopolitics in east to Europe, the general rule in all this situation is uncertainty. For this reason I will try to explain better what is happening specifically in North America ( USA, Canada, México).
Star in North America. Since President Trump took the presidency in the United States of America and his first orders have shocked the business associations and the entire society in Mexico due to two important points, immigration policy and customs tariffs, in both cases they are very important for Mexico, but according to some specialists such as Luis de La Calle of De La Calle Madrazo SC in his last conference in which he participated, he mentioned about customs tariffs and the decrees that were signed in which they say they will be analyzed from February 1st, after some consultations with their staff. He assures that depending on the types of sectors that are chosen and the percentage that they can increase, they could create a negative effect on the US economy. If we take as a basis that the US economy depends largely on the Mexican and Canadian supply chain, in fact, if President Trump applies these orders at around 25%, the impact on US inflation will be very strong for the Americans.
All these features make it so difficult for the USA adopt to aggressive strategy in this commercial point, because the most important issue to the American government is to take control over the TMEC renegotiation, above all in sectors in which the USA market has a deficit commercial with Canada and Mexico and create more balance in these accounts. But the USA government knows that Mexico provides not only merchandise, but also provides services that USA markets need and changing the supply chain is too difficult in the short-term, also that we don’t know if the American citizens want these kinds of jobs. According to Vice president at TENARIS GROUP Guillermo Vogel, another Mexican specialist in international trade says that we will see an adjustment period in which the American Government gives to their citizens proves that they are trying to boost the internal economy creating a good environment for the domestic market.
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But the truth is that Mexico and Canada need the US market to survive and are ready to put on the table what is necessary to negotiate. What both markets want is to establish solid trade and for the three countries to become the strongest regional market in the world. world. The three countries together are the most important region of power compared to other regions of the world, such as the European Union or the Asian Union.
Each country needs to work on a core business to help its partners. For example, Mexico needs to pay attention to internal security against drug cartels and detain immigrants who go to the United States. On the other hand, Canada needs to diversify. its balance with the US to give the US a higher value proposition than just oil exports. Finally, the United States needs to understand that Latin American workers are so important to many sectors of its economy; I think they require a worker program for all the jobs that American citizens do not want to accept, in sectors like construction, agriculture, restaurants, for example, all of them. These employees require workers who are people from LATAM, especially Mexican people to do it.