i3 - March/April 2017 - 42

Policy
By Kenneth Smith, Director of the Trade and NAFTA Office at the Embassy of Mexico in Washington, DC

G U E ST B LO G

Open Trade Drives Growth
and better paying jobs. Mexico is the U.S.'s
largest foreign consumer of electronics
(U.S. exports to Mexico totaled $43 billion
in 2015) and its second largest provider
of computer and electronic products
and components ($58 billion in 2015).
These components, once integrated in
the production of final consumer electronics, bring benefits to U.S. companies and
their workers when the products are
exported to third markets or consumed
domestically by U.S. families.
Undoubtedly, a stable Mexico contributes to a stronger U.S. and a more
The NAFTA agreement
competitive North America. We have
was signed in Washington, DC
a common interest in terms of economic
in December 1993.
growth and competitiveness.
Mexico is committed to undertaking
efforts to modernize NAFTA and
hroughout history, open trade has been a key driver of
strengthening
North America's leadereconomic growth, security and prosperity. In recognition of
ship in the 21st century economy; one
this, a quarter of a century ago the U.S., Canada and Mexico that is driven by digital flows, innovation
came together to craft the most ambitious trade agreement
and knowledge. NAFTA was just the
of its time. The North American Free Trade Agreement (NAFTA) was beginning. Our trade and investment
relations must be structured to maximize
the first to fully liberalize trade in goods and many services.
the competitive potential of the region.
A NAFTA 2.0 should be based on three
It also established new disciplines for
dollars a minute are traded across our
basic elements. First, a shared assessment
investment, government procurement,
2,000-mile border, supporting nearly
that reflects a balanced perception of the
competition policy and intellectual
five million jobs in the U.S. and many
benefits that each country has gained.
property rights, among others.
more in Mexico. And for every dollar
Second, a recognition that there is room
This landmark agreement became the
that Mexico earns from exports, nearly
for modernization. And third, a win-win
model for trade negotiations to follow and 40 cents are spent on American goods.
proposition; the outcome
ushered in an era of economic expansion
This high degree
of this process must generate
across the globe. For Mexico, NAFTA
of U.S. content in
benefits for all.
anchored our country's commitment to
Mexico's exports
The U.S.-Mexico Trade agreements are tools
open markets and sound macroeconomic
should not go unnoto pursue economic growth and
policies. Free flow of goods also led to
ticed. The undeniable
relationship
the free flow of ideas, a growing middle
reality is that our
is rich, complex development, and they provide
certainty and transparency
class and a democratic society. Since
economies are proand diverse.
among like-minded countries
then Mexico has expanded its network of
foundly intertwined.
with shared values. We look
free trade agreements (FTAs) to include
Nowhere is this
forward to engaging with the
46 countries, and the U.S. has implemore evident than in
new U.S. administration in a constructive
mented FTAs with 20 countries.
the tech industry, which has benefitted
Yet no relationship parallels that which
tremendously from an open global trading manner, to build an ambitious platform
to address new economic and business
we have with our neighbor to the north.
system. U.S. high-tech companies lead
challenges not previously covered,
The U.S.-Mexico relationship is rich,
the world economy in terms of growth
and to preserve the configuration of our
complex and diverse. Mexico is the U.S.'s
and employment, and the solutions they
supply chains in order to enhance North
second largest supplier and second largprovide enable others to compete sucAmerican competitiveness. ■
est export market. More than a million
cessfully across the globe and create more
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MARCH/APRIL 2017

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i3 - March/April 2017

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