MÉXICO
MARIA ZAPATA FASM 420 PROF. LEVY
TABLE OF CONTENT COUNTRY OVERVIEW STEEP ANALYSIS APPAREL AND TEXTILE INDUSTRY TRADE AGREEMENTS TRANSPORTATION MAIN SUPPLIERS SHIPPING AND PRODUCTION BUSINESS ETIQUETTE RISKS AND BENEFITS
COUNTRY OVERVIEW
MEXICO WILL BREAK DOWN THE CURRENT EIGHT-DIGIT TARIFF LINES FOR TEXTILE AND APPAREL PRODUCTS INTO 10 DIGITS, WHICH WOULD ALLOW TARIFF RATES TO BE MORE SPECIFIC. IT WILL IMPLEMENT A NEW FINANCING MECHANISM WITH TOTAL AVAILABLE CREDIT OF 450 MILLION PESOS (AROUND $30 MILLION USD) OVER THE NEXT 12 MONTHS TO HELP THE DOMESTIC TEXTILE AND APPAREL INDUSTRY UPGRADE THEIR MACHINERY AND EQUIPMENT, PURSUE INNOVATIVE STRATEGIES AND DEVELOP NEW PRODUCTS.
MEXICO HAS BEEN OCCUPIED BY SEVERAL GREAT CIVILIZATIONS SUCH AS THE MAYAS, THE OLMECS AND THE TOLTECS. IT WAS DURING THE AZTEC EMPIRE THAT THEY WERE CONQUERED BY HERNAN CORTES UNDER THE SPANISH CROWN IN 1521. THEY DID NOT GAIN THEIR INDEPENDENCE UNTIL SEPTEMBER 16, 1810 - 300 YEARS LATER.
MEXICO’S POPULATION CONSISTS OF MANY ETHNIC GROUPS INCLUDING AMERICAN INDIANS AND MEXICANS OF EUROPEAN HERITAGE. HOWEVER, TWO THIRDS OF THE POPULATION FALL UNDER THE CATEGORY OF MESTIZOS - A MIXTURE BETWEEN INDIGENOUS AND EUROPEAN ANCESTORS.
LOCATION: NORTH AMERICA - BETWEEN USA AND SOUTH AMERICA GOVERNMENT: FEDERAL REPUBLIC HEAD OF STATE: ENRIQUE PEA NIETO LANGUAGE SPOKEN: SPANISH (92%) POPULATION: 127.5 MILLION RELIGION: CATHOLIC (83%) INCOME LEVEL: UPPER MIDDLE MEDIAN AGE: 27.5 INFLATION RATE: 4.72% LIFE EXPECTANCY: 76.92 SEX RATIO: 99.15 MALES PER 100 FEMALES
EXPORT VOLUME
TOP EXPORT CATEGORIES: MACHINERY ($42 BILLION) ELECTRICAL MACHINERY ($41 BILLION) VEHICLES ($22 BILLION) MINERAL FUELS ($19 BILLION) PLASTICS ($17 BILLION)
THE VALUE OF ITS BILATERAL TRADE WITH THE U.S. IS CLOSE TO HALF OF ITS TOTAL GDP, WITH THE US PURCHASING THREE QUARTERS OF ITS TOTAL EXPORTS EXPORTS OF AGRICULTURAL PRODUCTS TO MEXICO TOTALED $18 BILLION IN 2015, BECOMING THE U.S. 3TH LARGEST AGRICULTURAL EXPORT MARKET. MEXICO WAS THE UNITED STATES' 2ND LARGEST GOODS EXPORT MARKET IN 2016
ECONOMIC OVERVIEW
LABOR FORCE PARTICIPATION: 59.10% UNEMPLOYMENT RATE: 3.60% CURRENCY EXCHANGE RATE: 1USD - 19.04MXN MINIMUM WAGE: $80.04 MXN PER DAY WAGES IN MANUFACTURING: $2.30 USD/HOUR GDP GROWTH: 2.3%
OWING TO ITS CLOSE TIES WITH THE US, THE ECONOMY OF MEXICO WAS ADVERSELY AFFECTED AFTER THE SEPTEMBER 11 TERRORIST ATTACKS AND 2008 RECESSION. THE ECONOMY IS WITNESSING GROWING SERVICE AND INDUSTRIAL SECTORS, WITH INCREASING PRIVATE INVESTMENT. THE RELATIONS WITH THE US, WITH DONALD TRUMP AT THE HELM OF AFFAIRS, REMAIN A CAUSE OF CONCERN FOR THE COUNTRY.
COUNTRY STABILITY
SOCIAL IN 2012, MEXICO ACHIEVED UNIVERSAL HEALTH COVERAGE FOR ALL ITS CITIZENS, WITH A NATIONAL HEALTH INSURANCE PROGRAM CALLED SEGURO POPULAR, WHICH WAS FIRST INTRODUCED IN 2001. HOWEVER, POOR HEALTHCARE SPENDING COMPARED TO OECD STANDARDS HAS RESULTED IN A FRAGILE HEALTHCARE SYSTEM WITH INSUFFICIENT RESOURCES. THE GOVERNMENT HAS BROUGHT IN REFORMS IN THE EDUCATION SECTOR. APART FROM THAT, THE MENACE OF THE DRUG CARTELS CONTINUES TO WORRY THE GOVERNMENT. IN ADDITION, RISING INEQUALITY DOES NOT BODE WELL FOR THE OVERALL DEVELOPMENT OF THE ECONOMY.
ALTHOUGH THE GOVERNMENT HAS MADE SERIOUS ATTEMPTS TO ALLEVIATE POVERTY, NEARLY HALF OF MEXICO’S POPULATION STILL RESIDES WITHIN THE UNITED NATIONS (UN)-DEFINED POVERTY BRACKET, IMPLYING THAT THEIR BASIC NEEDS ARE UNFULFILLED. FURTHERMORE, THE INHABITANTS OF THE RURAL SOUTHERN REGIONS DO NOT HAVE ACCESS TO BASIC FACILITIES SUCH AS HEALTH, SANITATION, AND EDUCATION. ANOTHER FEATURE OF MEXICAN SOCIETY IS THE EXISTENCE OF A LARGE INFORMAL WORK SECTOR; EMPLOYEES IN THIS SECTOR DO NOT HAVE ACCESS TO SOCIAL SECURITY OR MEDICAL BENEFITS. HEALTH SERVICES ARE PROVIDED BY BOTH PUBLIC AND PRIVATE ENTITIES.
TECHNOLOGICAL MEXICO HAS TRADITIONALLY BEEN UNABLE TO ATTRACT FIRMS TO BUILD MAJOR RESEARCH AND DEVELOPMENT FACILITIES IN THE COUNTRY. CONSEQUENTLY, ACCORDING TO THE MEXICAN ACADEMY OF SCIENCES, THE COUNTRY IMPORTS MORE THAN 90% OF ITS TECHNOLOGY FROM ABROAD—THIS REFLECTS THE LACK OF INNOVATION AND LOW RESEARCH AND DEVELOPMENT SPENDING IN THE COUNTRY. THE COUNTRY HAS A STRONG TECHNICAL WORKFORCE, WHICH HAS ENCOURAGED MULTINATIONAL COMPANIES TO OPEN MANUFACTURING CENTERS ACROSS THE COUNTRY. MEXICO ALSO BOASTS OF AN AEROSPACE SECTOR THAT IS AMONG THE MOST VITAL ENGINEERING INDUSTRIES IN THE COUNTRY. HOWEVER, THE LEVEL OF INNOVATION IN MEXICO IS LOW, AS CAN BE SEEN FROM THE SMALL NUMBER PATENTS GRANTED BY THE USPTO IN 2015. NEVERTHELESS, THE INCREASE IN STARTUPS SHOULD PROVIDE IMPETUS TO TECHNOLOGICAL DEVELOPMENT.
ECONOMIC MEXICO IS A MEMBER OF THE NAFTA WITH CANADA AND THE US, AND BECAME THE FIRST LATIN AMERICAN MEMBER OF THE OECD IN 1994. THE ECONOMY DEPENDS HEAVILY ON COMMERCIAL RELATIONS WITH THE US AND REMITTANCES FROM MIGRANT WORKERS BASED THERE. INVESTMENTS BY AUTOMOTIVE MANUFACTURING COMPANIES LIKE NISSAN ARE EXPECTED TO ACCELERATE THE PACE OF ECONOMIC DEVELOPMENT AND GENERATE JOBS. HOWEVER, INFORMAL EMPLOYMENT AND A STRONG DEPENDENCE ON THE US ECONOMY ARE A CAUSE FOR CONCERN. THE ECONOMY GREW AT MODERATE RATE OF 2.55% AND 2.38%, RESPECTIVELY, DRIVEN BY THE STRONG MANUFACTURING AND SERVICES SECTORS. THE GROWTH WAS BASED ON THE STRONG EXPORT BASED MANUFACTURING SECTOR DUE TO STRONG DEMAND FROM THE US AND A WEAKENING PESO. ACCORDING TO MARKETLINE, THE ECONOMY IS EXPECTED TO GROW MODESTLY BY 2.55% IN 2017 DESPITE PERSISTENCE OF LOW OIL PRICES.
ENVIRONMENTAL MEXICO IS ONE OF THE TOP FIVE COUNTRIES IN TERMS OF BIODIVERSITY. AIR POLLUTION IS A MAJOR CONCERN IN MEXICO, WITH MEXICO CITY CONSIDERED ONE OF THE MOST POLLUTED CITIES IN THE WORLD. RESEARCH STUDIES IN MEXICO CITY POINT TO THE GROWING THREAT OF HEART AILMENTS DUE TO HIGH CONCENTRATIONS OF SUSPENDED PARTICULATE MATTER. MOREOVER, RAMPANT DEFORESTATION HAS ATTRACTED CRITICISM FROM ENVIRONMENTAL GROUPS. THE BORDER 2020 US-MEXICO ENVIRONMENT PROGRAM WAS SIGNED ON AUGUST 8, 2012 AND WORK IS ON TO ADDRESS HIGH PRIORITY ENVIRONMENTAL AND PUBLIC HEALTH PROBLEMS ALONG THE 2,000-MILE BORDER BETWEEN THE TWO COUNTRIES THE SECRETARIAT FOR ENVIRONMENT AND NATURAL RESOURCES IS RESPONSIBLE FOR CHARTING ENVIRONMENTAL POLICIES AND IMPLEMENTING PRESERVATION, PROTECTION, AND RESTORATION PLANS. THE BASIC FRAMEWORK OF THE SECRETARIAT STIPULATES INTEGRITY, TRANSFERABILITY, TRANSPARENCY, AND INSTITUTIONAL IMPROVEMENT. ALTHOUGH NOT RESTRICTED BY THE KYOTO PROTOCOL IN TERMS OF GREENHOUSE GAS EMISSIONS, AIR POLLUTION CONTINUES TO POSE A SERIOUS CHALLENGE TO THE COUNTRY, AND THE IMPLEMENTATION OF ENVIRONMENTAL CONSERVATION POLICIES IS LESS THAN CONSISTENT. THE GOVERNMENT NEEDS TO EXPEDITE POLICIES THAT WILL CONTROL POLLUTION IN MAJOR CITIES.
POLITICAL POLITICAL STABILITY HAS LARGELY BEEN MAINTAINED IN MEXICO SINCE THE EARLY 1990S. PRESIDENT ERNESTO ZEDILLO’S REGIME DURING THE MID-1990S INTRODUCED LONG-AWAITED REFORMS TO THE MEXICAN ELECTORAL SYSTEMS, WHICH WERE INITIATED TO CREATE A LEVEL PLAYING FIELD FOR OPPOSITION PARTIES. FURTHERMORE, DURING THE EARLY 2000S THE VICENTE FOX GOVERNMENT SUPPORTED THE REFORMS AND PLEDGED TO IMPLEMENT ADDITIONAL LEGISLATION TO OVERHAUL THE EXISTING POLITICAL AND ECONOMIC LANDSCAPE. HIS REIGN WAS FOLLOWED BY FELIPE CALDERON, WHOSE GOVERNMENT ENCOURAGED FREE TRADE AND REGIONAL CO-OPERATION. THE JULY 2012 ELECTIONS SAW THE RETURN TO POWER OF THE PRI AFTER BEING IN OPPOSITION FOR 12 YEARS. ENRIQUE PEÑA NIETO BECAME PRESIDENT AFTER DEFEATING CANDIDATES FROM THE PRD AND THE PAN. THE ELECTION WAS TAINTED BY ACCUSATIONS OF VOTE BUYING. THE PRD, WHICH WAS IN SECOND PLACE IN THE ELECTIONS, SUGGESTED THAT THE PRI WAS BEHIND A MASSIVE VOTE BUYING SCHEME. THE FOCUS OF THE NEW PRESIDENT IS ON BRINGING IN REFORMS. HUMAN RIGHTS ABUSE IS AN AREA IN WHICH MEXICO HAS DRAWN INTERNATIONAL CRITICISM.
TEXTILE INDUSTRY
STRENGTHS
WEAKNESSES
-NAFTA MEXICO FORMS PART OF THE NORTH AMERICAN FREE TRADE AGREEMENT
-US ECONOMIC SLOWDOWN LONG TERM NEGATIVE IMPACT ON MEXICO’S OWN ECONOMY
-STRUCTURAL REFORMS CHANGES TO THE ECONOMIC GOVERNMENTAL STRUCTURE
-TRANSPORTATION INFRASTRUCTURE THERE IS NOT AN INTEGRATED TRANSPORTATION NETWORK THAT MEETS THE NATIONAL NEEDS
-DYNAMIC RAZOR MODIFICATION DECREASE IN COSTS AND INCREASE IN PROFITS -LOW WAGES CHEAP LABOR
-CRIME RATES DIETER FOREIGN INVESTMENTS AND INCREASE THE COST OF BUSINESS DUE TO BRIBERY AND SAFETY CONCERNS
-OIL RESERVES HELPS TO BRING IN MONEY FOR THE ECONOMY
OPPORTUNITIES
THREATS
-GEOGRAPHY A LINK BETWEEN SOUTH AND NORTH AMERICA
-PHARMACEUTICAL DRUG MONOPOLIES MEXICO'S BATTLE WITH NARCOTICS GANGS ALLOWS OTHER TYPES CRIMES TO EXPAND, BECAUSE RESOURCES ARE SPREAD THIN
-GROWING INFRASTRUCTURE IT IS STILL A DEVELOPING COUNTRY WITH NEW TECHNOLOGY EMERGING -DEPRECIATED PESO CHEAPER LABOR, CONTRACTING AND SOURCING FOR RAW MATERIALS -TOURISM PROVIDES OPPORTUNITIES FOR EMPLOYMENT AND ECONOMIC DEVELOPMENT
INDUSTRY SIZE: 415,000 WORKERS EXPERTISE: DENIM AND HEAVY METALS HTS CODE FOR DENIM: 5211.42.00 RAW MATERIALS: SILVER, GOLD, COPPER, OIL EXPORTS: $406.4 BILLION NUMBER OF APPAREL COMPANIES: 8,614 MEXICO TEXTILE AND APPAREL INDUSTRY IS DIVERSIFYING AND GROWING STRONGER AND AT THE SAME TIME HAS EXPERIENCED INSIGHTFUL STRUCTURAL CHANGES OVER THE PAST FEW YEARS. IT HAS NOT ONLY BECOME THE MAJOR REVENUE AND EMPLOYMENT SOURCE BUT AT THE SAME TIME PLAYS A SIGNIFICANT ROLE IN THE EXPORT SECTOR. TEXTILE PRODUCTION IS THE FOURTH LARGEST MANUFACTURING ACTIVITY IN THE COUNTRY WHICH INCLUDES THE MAKING OF THREAD, CLOTH AND DECORATION, IN BOTH NATURAL AND SYNTHETIC FIBERS.
MAQUILA PROGRAM: MEXICO INITIATED ITS MAQUILA PROGRAM TO ENCOURAGE THE DEVELOPMENT OF EXPORT MANUFACTURING INDUSTRIES BY WAIVING IMPORT DUTIES ON CAPITAL GOODS AND MATERIAL INPUTS USED IN THE MANUFACTURE OF PRODUCTS FOR EXPORT. MEXICO-EU FTA: FTA ENABLES CLOSER ECONOMIC CO-OPERATION BETWEEN MEXICO AND THE EU. THIS WILL PROVIDE EU COMPANIES PREFERENTIAL ACCESS TO THE MAJOR MARKETS IN NORTH AND SOUTH AMERICA THROUGH MEXICO’S VIA EXTENDED FTA NETWORK.
TEXTILE FIRMS IN MEXICO REALIZED THEY NEEDED TO INCREASE THEIR COMPETITIVENESS BY INVESTING IN EXPANDING PRODUCTION CENTERS AND MANUFACTURING HIGH-QUALITY TEXTILE PRODUCTS, IN ORDER TO COMPETE IN INTERNATIONAL MARKETS. MEXICO IS THE LARGEST MARKET FOR U.S. TECHNICAL TEXTILES, AND PLAYS A SPECIAL ROLE IN TRADE WITH THE UNITED STATES TEXTILE MARKET. MEXICO, THEREFORE, IS AN IDEAL STARTING POINT FOR NEW EXPORTERS.
TRADE AGREEMENTS
NAFTA TEXTILE AND APPAREL SECTOR GROWTH HAS BEEN SPURRED ON BY NAFTA. IT IS BY FAR THE MOST IMPORTANT EXPORT MARKET FOR MEXICO SECTOR. MEXICO HAS BEEN THE KEY US SUPPLIER, AHEAD OF CHINA, HONG KONG AND TAIWAN.
TPP TPP IS A FREE TRADE AGREEMENT WITH THE AIM OF INTEGRATING THE ECONOMIES OF THE ASIA – PACIFIC REGION. GDP SCALE OF TPP IS ESTIMATED AT $26,000 BILLION, ACCOUNTING FOR APPROXIMATE 40% OF GLOBAL GDP.
SUPPLIERS AND SHIPPING
MAIN SUPPLIERS KALTEX APPAREL ADDRESS: INGS MILITARES NO. 2 COL. EMPLEADO MUNICIPAL NAUCAPLA, ESTADO DE MEXICO C.P. 53380 PHONE: +52 57265600 CUSTOMER: LEVI STRAUSS WEBSITE: WWW.KALTEX.COM.MX
INDUSTRIA MACYS SA DE CV ADDRESS: JW IZAZAGA 99-8 COLONIA CENTRO MEXICO CITY, MEXICO C.P. 06090 PHONE: +52 57097620 CUSTOMER: UNDER ARMOUR WEBSITE: WWW.APPARELPRODUCTION.COM
MEX MODE SA DE CV ADDRESS: RETONRO DE CONTINENTES 38 RANCHO LOS SOLES TATLIXCO PUEBLA C.P. 74290 PHONE: +52 2442263358 WEBSITE: THE NORTH FACE WEBSITE: WWW.INGREDION.MX
COUNTRY TRANSPORTATION THE CITY OF EL PASO, TEXAS IS SITUATED ON THE BORDER WITH MEXICO. EL PASO’S DYNAMIC GROWTH HAS BEEN CREDITED TO THE DEVELOPMENT OF AN INTEGRATED INTERNATIONAL TRADE REGION WITH CIUDAD JUAREZ LONG BEFORE FREE TRADE ZONES AND GLOBAL MARKETS FLORISHED. MOREOVER, EL PASO’S CENTRAL LOCATION YIELDS A STRATEGIC PROXIMITY TO MARKETS ACROSS NORTH AMERICA WITH AN INTERSTATE HIGHWAY SYSTEM PROVIDING BOTH EAST/WEST AND NORTH/SOUTH ACCESS AS WELL AS RAIL FACILITIES SERVING EVERY NORTH AMERICAN MARKET.
SHIPPING RESOURCES
RUSSELL TRANSPORT 12365 PINE SPRINGS EL PASO, TEXTAS 79928 PHONE: 915.542.1499 WWW.RUSSELLTRANSPORT.COM SAVANNAH, GA: 27 HRS, 2,927 KM, $5,477
YRC FREIGHT 10990 ROE AVE OVERALDN PARK, KS 66211 PHONE: 800.610.3321 WW.YRC.COM SAVANNAH, GA: 29 HRS, 3,222 KM, $6,030
WERNER DE MEXICO AV. PASEO DE LAS PALMAS 275 CIUDAD DE MEXICO, CDMX. 11000 PHONE: +52 5530674700 SAVANNAH, GA: 25 HRS, 2,700 KM, $5,054
LEAD TIME OF PRODUCTION
CONDITIONS THAT MAY AFFECT LEAD TIME OF PRODUCTION BY IDENTIFYING POSSIBLE NATURAL DISASTERS AND CULTURAL NUANCES SUCH AS HOLIDAYS AND CULTURAL EVENTS EARTHQUAKES: MEXICO IS SITUATED ATOP THREE LARGE TECTONIC PLATES AND IS HENCE A VERY SEISMOLOGICAL ACTIVE REGION. IT WAS RECENTLY AFFECTED BY A 8.4 EARTHQUAKE THAT DID TAKE A TOLL ON MANY APPAREL FACTORIES. HURRICANES: ALTHOUGH HURRICANE SEASON DOES AFFECT CERTAIN AREAS OF THE COUNTRY, MOST TEXTILE AND APPAREL FACTORIES AND IN LAND AND TEND TO NOT BE AFFECTED BY SUCH NATURAL DISASTERS.
IN TERMS OF HOLIDAYS, MEXICAN FESTIVITIES COINCIDE CLOSELY WITH THOSE IN THE US. KEY DATES TO KEEP IN MIND WOULD BE THE MEXICAN INDEPENDENCE, SEPT. 16TH AND THE THE DAY OF THE DEAD, NOV. 2ND
BUSINESS ETIQUETTE
DRESS CODE CASUAL ATTIRE IS USUALLY NOT APPROPRIATE. DRESSING CONSERVATIVELY WOULD BE A PROPER APPROACH WITH DARK COLORED SUITS FOR BOTH MEN AND WOMEN. BEING WELL GROOMED IS OF HIGH IMPORTANCE.
MEETINGS IT IS IMPORTANT TO CONFIRM YOUR MEETING ON THE DAYS PRIOR AND DOING IT SEVERAL TIMES UNTIL THE EVE OF THE MEETING. YOU SHOULD ALWAYS PLAN TO ARRIVE ON TIME BUT EXPECT TO WAIT FOR THE OTHER PARTY FOR UP TO 20 MINUTES.
NEGOTIATIONS THERE IS A HIERARCHICAL BUSINESS SYSTEM SO IT IS IMPORTANT TO DIRECTLY ADDRESS THOSE IN CHARGE. MEXICANS ALSO VALUE GREATLY RELATIONSHIP BUILDING AND TEND TO DIFFER INTO A MORE FRIENDLY AMBIANCE DURING MEETINGS.
TITLES TITLES ARE VERY IMPORTANT AND YOU SHOULD ADDRESS EVERYONE BY THEIR PROFESSIONAL TITLE UNLESS ASKED TO DO OTHERWISE BY THAT SPECIFIC PERSON. WHEN BUSINESS CARDS ARE EXCHANGED, IT IS NOT UNCOMMON TO DIRECTLY PUT THEM IN YOU POCKET AND INSPECT THEM AT A LATER TIME. PERSONALIZE EVERYTHING. EXPLAIN HOW ALL PROPOSALS WILL BENEFIT A MEXICAN'S COUNTRY, COMMUNITY, FAMILY AND, MOST IMPORTANT, THE MEXICAN PERSONALLY. MANAGEMENT OR OTHER IMPORTANT PEOPLE MAY SOMETIMES MAKE UNREASONABLE OR OVERLY AGGRESSIVE DEMANDS TO DEMONSTRATE THEIR IMPORTANCE WITHIN OR TO THEIR OWN GROUP.
RISKS AND BENEFITS
RISKS HEAVY DEPENDENCE ON THE USA MANY ILLEGAL IMMIGRANTS FROM SOUTH AMERICA
BENEFITS ABILITY TO ATTRACT ADVANCED MANUFACTURING POLITICAL STABILITY
HIGH CRIME LEVELS AND SAFETY ISSUES
EXCELLENT SUPPLY CHAINS
WEAK DEVELOPMENT
STRATEGIC LOCATION
INFORMAL ECONOMY
LOW EXTERNAL DEBT
INFRASTRUCTURE SHORTCOMINGS
VAST MARKET
CORRUPTION
MEMBER OF NAFTA AND TTP GEOGRAPHIC PROXIMITY CHEAP LABOR
CONCLUDING THOUGHTS WITH MEXICO’S TRADE AND FINANCIAL LINKAGES TO THE US, ITS ECONOMY IS SENSITIVE TO US ECONOMIC CYCLES. CONSEQUENTLY, THE FLUCTUATIONS IN MEXICO’S OUTPUT HAVE BECOME SYNCHRONIZED WITH THOSE OF THE US ECONOMY SINCE THE COUNTRY JOINED THE NAFTA IN THE 1990S. THREE KEY LINKS TO THE US ECONOMY ARE THROUGH TRADE—ESPECIALLY MANUFACTURING, REMITTANCE INFLOWS AND FINANCIAL MARKETS. ACCORDING TO THE CIA – THE WORLD FACTBOOK, AROUND 81.1% OF MEXICO’S EXPORTS WENT TO THE US IN 2015. MEXICAN MANUFACTURING FIRMS ARE INTEGRATED WITH THE US SUPPLY CHAIN, RAISING THEIR VULNERABILITY TO ADVERSE DEVELOPMENTS IN THE US ECONOMY. THE COUNTRY’S BENEFITS WHEN IT COMES TO THE APPAREL AND TEXTILE INDUSTRY CLEARLY OUTWEIGH THE RISKS. THROUGH THE COST OF LABOR AND ITS GEOGRAPHIC PROXIMITY WITH THE USA IT IS A VERY VIABLE SOURCE FOR PRODUCTION.
SOURCES HTTP://WWW.WIKIWEALTH.COM/SWOT-ANALYSIS:MEXICO HTTPS://USTR.GOV/COUNTRIES-REGIONS/AMERICAS/MEXICO HTTP://WWW.THETEXPERTS.COM/MARKET-WATCH/MEXICO-TEXTILE-APPAR EL-INDUSTRY-A-STRATEGIC-CHOICE/ HTTPS://TRADINGECONOMICS.COM/MEXICO/LABOR-FORCE-PARTICIPATIONRATE HTTPS://TRADINGECONOMICS.COM/MEXICO/INFLATION-CPI HTTP://WWW.THETEXPERTS.COM/MARKET-WATCH/MEXICO-TEXTILE-APPAR EL-INDUSTRY-A-STRATEGIC-CHOICE/ HTTPS://WWW.MEXGROCER.COM/BUSINESS-IN-MEXICO.HTML HTTP://WWW.EDIPLOMAT.COM/NP/CULTURAL_ETIQUETTE/CE_MX.HTM MARKET LINE - COUNTRY PROFILE SERIES