The TPP, Mexico, and the US

The article “Trans-Pacific Partnership: Mexico’s Last Chance?” (http://nationalinterest.org/feature/trans-pacific-partnership-mexicos-last-chance-13516) review’s Mexico’s “middle-income” economic status, and how the TPP is poised to bring Mexico to new heights. Throughout the global economy, many countries are struggling to grow. As stated, “China is slowing, Europe rebounds in fits and starts”. Mexico is in need of a “catalyst” to bridge the gap from “middle-income” status to economic powerhouse. The catalyst is the TPP. To start, the TPP was a chance to “renegotiate the North American Free Trade Agreement” without actually reopening it. This is very important as, for Mexico, the economic link between the United States and Mexico is one of the most important factors in the TPP agreement. As about 70% of its exports head to the United States, Mexico is in need of joining the TPP to share and continue this export market. Likewise, Mexico could potentially be a viable option for outsourced manufacturing from the United States. Mexico’s “ability to deepen its position in global supply chains and manufacturing gives it a unique ability to gain share in a global economy with few real growth areas”. If all goes according to plan, Mexico may be ready to emerge from its “middle-income” status and become one of the world’s major players.

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