The action is the result of a meeting between US Secretary of Commerce Gina Raimondo and Economy Minister Raquel Buenrostro.
The US and Mexico will put up a joint presentation for the commercial sector, outlining the possibilities for moving their businesses. For businesses looking to improve their operations, this would also include financial and economic advantages.
Trade Conflict Between The US And China
According to reports, the combined presentation would be made in the first two months of 2023. Over 400 enterprises, according to Buenrostro, have already expressed interest in carrying out the relocation process from Asia to Mexico, as reported by Reuters.
Moving from Asia to North America would have a number of advantages, including lower labor costs and advantages related to the USMCA free trade agreement.
The manufacturing of semiconductors and printed circuit boards is one of the industries that can make sense.
Mexico was asked by the United States to benefit from its significant investment, particularly in the semiconductor sector.
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CHIPS and Science Act of 2022
In September, the US Department of Commerce unveiled its implementation plan for the $50 billion allocated by US President Joe Biden’s executive order, the CHIPS and Science Act of 2022, which was signed in August.
According to the administration, “the US and Mexico agreed to increase cooperation through the High-Level Economic Dialogue to generate better economic circumstances and speed the entrance of new investment to Mexico. This is related to the need that employees would have if they moved to North America.
Additionally, this is the reason Buenrostro and Raimondo stressed how crucial it is for the Economy Ministry to serve as a one-stop shop for luring in money.
Moreover, the agreement would cover every license and approval needed for the founding of new businesses. The U.S. Department of Commerce stated in a press statement that “they also discussed areas of common interest, such as renewable energy.”
