Why Mexico? Why Now? -
The U.S. - Mexico Chamber of Commerce has been instrumental in providing the framework of information in understanding Mexico as a current economic hotspot. They deserve great credit for doing so. I have come to understand the flourishing business opportunities in Mexico currently due to the window of context they have given me. Accordingly, it is becoming more apparent that the printing industry represents one of the next domains of potential progress for business in Mexico. This is entirely related to sweeping technological changes and digital dominance.
The economy of Mexico possesses a myriad of strengths as the 14th largest economic power internationally. If one factors in purchasing power, Mexico's economy is larger than that of Canada. In addition to its current growth this year, the coming decades are projected almost universally to be a continued economic boom for the country. Some experts even project Mexico to emerge as the leading economy of Latin America in the near future, overtaking Brazil in that category. Mexico can also count itself in step with other leading economies in the continent that have seen a rise in the middle class from under 50% to representing the majority.
The NAFTA agreement from its inception received a lukewarm response in the United States, Mexico and Canada. The practical terms of its benefits were initially unknown. However, all countries involved have since learned of those benefits due to the growth of the agreement. The developments and corrections made within it since 1994 have brought mutual accommodation to everyone's interests. The results were indeed to mutual benefit in the long run and NAFTA has proved to be an umbrella of opportunity. One of the most noteworthy attachments to the agreement has irrefutably been the IMMEX scheme, which has encouragingly delivered tax breaks and other incentives for export companies operating in Mexico. The demand for a reduction in labor costs and tax breaks is provided by IMMEX to manufacturers based in the United States and has led to its obvious beneficial appeal. The government of Mexico extended the tax breaks component of IMMEX through the end of this year.
The opportunities in Mexico continue. It must be emphasized that Mexico has free trade agreements with over forty countries around the world, which is extremely beneficial in itself but also in the context of NAFTA. Additionally, a longstanding dispute involving long-haul cargo trucking with its neighbor the United States was resolved. This is monumental considering that 70% of the two countries trade relationship ($400 billion annually) is via the use of trucking. This has implications for not just the U.S. and Mexico but all of the countries that they produce to in exports and goods consumed.
As a result of the accumulated developments over time the agreement has created a triad of regional power, otherwise known as the NAFTA region. It can be assumed that although there is much work to be done these benefits will continue to grow just as the experts project about the economy of Mexico specifically. Surely this middle class can be expanded further to ensure the longevity of this economic growth. Keeping the positive context in perspective, which organizations like the U.S.-Mexico Chamber of Commerce have done, can hold true to this projection.
In response to the latest advancements in technology, the graphic arts industry of Mexico is in the elite lead of converting to the new digital formats in printing, packaging and other related industries. Credit is due to El Impresor for being the timely voice of dissemination to the industry as to these advancements taking place. DC
Ike Savitt, President, Gate Group USA, Inc., 74 Trinity Pl., New York, NY 10006, Tel: 212-989-9797, email@example.com.
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