The new Cold War is a business opportunity, and Mexico looks better placed than almost any other country to seize it, according to a Bloomberg report. US-China tensions are rewiring global trade, as the US seeks to reduce supply-chain reliance on geopolitical rivals and also source imports from closer to home. Mexico appeals on both counts-which is one reason it’s just overtaken China as the biggest supplier of goods to the giant customer next door.
On top of resurgent exports, Mexico boasts the world’s strongest currency this year and one of the best-performing stock markets. Foreign direct investment is already up more than 40% in 2023, even before Tesla Inc. starts building a proposed $5 billion factory. Not since the signing of the North American Free Trade Agreement in the 1990s has the country held the kind of allure for investors that it has right now, Bloomberg reports. Yet Mexico has a history of missing what could have been its moments. Over the past three decades, even a trade deal with the world’s biggest economy-which, just like today’s wave of so-called “nearshoring,” brought plenty of foreign investment-couldn’t pull Mexico out of a rut.
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