• Javier Jileta

Trade is rearranging; beyond cost.

What if what @kearney sees as “China substitution” is actually a “regional repurposing” for global value chains and new paradigms for growth and development? For Mexico has clear trade ties and bonding with China, yet our challenge lies on growing local value creation. https://www.kearney.com/operations-performance-transformation/us-reshoring-index/full-report

One needs to think beyond the USMCA reconfiguration, but what can be offered world over to foster partnerships and long term relationships beyond marginal value creation. It’s not about purely “trade", but trust between players-businessmen.

Strategy needs to move beyond labour, but towards the robustness of our ecosystem in the region and how it enables regional growth in the americas. Mexico’s role is pivotal towards balancing long term growth regionally.

Geography matters. Space matters. Unless star-trekkie transport systems are at play soon, nothing can compete against 2000mil border between Mexico and the US. Forget cost, think regional integration, Mexico’s businessmen are deeply connected in the economic block (US-CAN-MEX).

A key aspect to bear in mind, is that COVID has just pre-prepared us for the climate emergency. Trade disruption will be on the rise, as climate becomes unpredictable and will require for a reduction in terms of production and value chain integration risks.

Reconfiguring the North American economic block zone, implies understanding that this integration 2.0 can yield resilient growth and prosperity not only for the america’s but for the global trade-investment system.

We must think beyond cost and profit, but prosperity and development. Covid19, has made this evident and through geopolitics economic vectors are shifting dimensions and arrays.

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