Mexico Built for Success

The article “Latin America hails TPP trade opening” (http://www.ft.com/cms/s/0/e01c1fe0-6bb0-11e5-8608-a0853fb4e1fe.html#axzz3qjTrVzSa) reviews the impact of the TPP on three of Latin America’s largest economies. While Chile and Peru are also integrated into the “factory” that is the TPP, the article stipulates that Mexico “stands the most to gain.” But why? For one, due to the TPP Mexico is now open to 12 of the largest economies in the world, which combined assume 40% of the world GDP. Mexico, already a major player in the auto parts industry, is aiming to reach China with the added economies and benefits derived from the TPP. Mexico is also the world’s largest producer of flatscreen televisions. As seen in the auto industry, the trade agreements, tax exemptions, and access to big economies portray exponential growth for Mexico in the years to come. “Mexico knows it cannot compete on cheap labor – now they will have to compete on productivity and added value.” The TPP satisfies this need for Mexico and sets them up for much success in the future.

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