DE
DE

Open economy
Friendshoring with the USMCA region

Opportunities for the relationshio between Europe and Mexico
2.5 Minutes
Alfredo Suarez Garcia at FNF Mexico's office
  Alfredo Suárez García
Shreded USMCA

In an era defined by rapid geopolitical shifts, supply chain reconfigurations, and the need for resilient trade alliances, the concept of friendshoring offers a transformative opportunity. Moving beyond traditional outsourcing, friendshoring focuses on relocating production to nations that share aligned values and stable institutional frameworks. This policy paper, "Friendshoring with the USMCA Region: Opportunities for the Relationship Between Europe and Mexico," dives into the immense potential for collaboration among Europe, Mexico, and the United States.

Why should you explore this report?

Strategic Timeliness: With global disruptions—COVID-19, trade tensions, and geopolitical conflicts—reshaping economies, Mexico emerges as a vital link between the European Union and North America. Learn how nearshoring trends and the US-China decoupling have positioned Mexico as an indispensable partner in reimagining global value chains.

Data-Driven Insights: Discover how Mexico's geographic proximity to the US, robust trade agreements, and economic integration under the USMCA create a compelling case for European businesses. This paper evaluates key sectors—automotive, green technologies, and medical equipment—where collaboration can yield substantial benefits.

Sustainability and Innovation: Explore how friendshoring aligns with global calls for environmentally conscious trade practices and advanced technological integration. The paper highlights Mexico's unique positioning under frameworks like the Inflation Reduction Act (IRA), offering unprecedented incentives for green energy and electric vehicle industries.

Actionable Recommendations: This isn't just an analysis—it's a roadmap. From establishing a Mexico-EU Strategic Cooperation Council to creating supply chain accelerators for SMEs, the report provides tangible steps to harness trilateral synergies.

A Vision for Resilience: Beyond economics, this report emphasizes the creation of a stable and sustainable ecosystem, fostering trust and long-term growth amid global uncertainties.

Whether you're a policymaker, business leader, or researcher, this document offers critical insights into the opportunities of friendshoring and the transformative potential of collaboration. Delve into the full report to uncover how Europe and Mexico can navigate the new dynamics of global trade and forge a partnership that strengthens North American and European competitiveness.

Click here to read more and join the conversation shaping the future of international trade.

FRIENDSHORING WITH THE USMCA REGION

FRIENDSHORING WITH THE USMCA REGION

The concept of friendshoring has established itself as a
response to the challenges posed by globalization today.
Unlike offshoring, which sought to relocate production to
countries with lower labor costs, friendshoring proposes
to relocate value chains to nations that share similar
values, strategic interests and institutional
frameworks. This approach seeks not only greater
economic efficiency, but also greater resilience to global
disruptions and political tensions.
In the case of the relationship between Europe and Mexico,
friendshoring is an attractive option for several reasons.
First, Mexico is a country that shares a vision of free trade
with the EU, which is evidenced by the 14 Free Trade
Agreements to which it is a party. This vision is further
embodied in the EU-Mexico Economic Partnership,
Political Coordination and Cooperation Agreement (Global
Agreement), which includes the Free Trade Agreement
between the European Union and Mexico.
Friendshoring, therefore, creates an opportunity for
European companies to take advantage of the competitive
advantages that Mexico offers, including its geographic
proximity to the US market, while reducing the risks
associated with dependence on more volatile economies
or those subject to geopolitical tensions.

More