With or without Nearshoring, We Need to Keep Working in Mexico

For decades, Mexico enjoyed a “geolocation bonus.” Its neighbourhood with the United States—the world’s largest economy—offered it a strategic advantage without much effort. NAFTA’s signing in 1994 and its updating in the T-MEC guaranteed it preferential access to the US market, with reduced or zero tariffs for more than 80% of the exported products. While other countries faced tariff barriers of up to 20% to enter the United States, Mexico enjo…