The Mexican economy facing the upcoming renegotiation of the USMCA: a crucial challenge for the country.

The Mexican economy is at a crucial moment with the upcoming renegotiation of the Treaty between Mexico, the United States, and Canada (T-MEC) scheduled for the year 2026. This trade agreement has been fundamental for the country, which has become the main trading partner of the United States, surpassing powers like China and Canada. The incoming Administration, led by Claudia Sheinbaum, along with the new President of the United States, will have to address this review that will define the commercial relationship between the three countries in the next 16 years. Since March, the Mexican government has been working diligently to prepare for this renegotiation of the T-MEC. Raquel Buenrostro, Secretary of Economy, has emphasized the importance of collaborating with companies and workers in this task. Possible scenarios and strategies have been evaluated, and close collaboration is underway with the next Secretary of Economy to ensure a strong position in the negotiations. The relevance of international trade for Mexico is undeniable, especially in a global environment marked by events such as the trade war between China and the United States, the covid-19 pandemic, and geopolitical conflicts. These factors have disrupted global supply chains, raising production costs and highlighting the importance of strengthening the regional economy. Mexico, thanks to its strategic location in North America, has managed to capitalize on these changes in its favor. The country has maintained a positive trade balance with the United States, exporting double what it imports. Mexican exports have reached record levels, with a predominant focus on North America. Mexico has become the main trading partner of the United States, demonstrating the importance of the T-MEC in strengthening this key economic relationship. Additionally, the country excels in sectors such as trucks, beer, avocados, tomatoes, and strawberries, among others. The Secretary of Economy has stated that Mexico is experiencing its best economic moment in decades, with solid economic growth placing it twelfth globally. Macroeconomic stability, record employment, wages, and exports, as well as attractiveness for foreign direct investment, are clear signs of this progress. The country has received significant investments, with a significant proportion coming from companies with capital in North America. The Claudia Sheinbaum administration has set three key objectives to strengthen the Mexican economy: developing value chains with national content, strengthening existing industries, and promoting regional development. Examples of this approach include advances in the automotive industry, the focus on strategic sectors such as semiconductors and electromobility, and the boost to the medical devices sector. These initiatives aim to diversify the economy and consolidate sustained growth. The upcoming renegotiation of the T-MEC represents an opportunity to consolidate the progress made and ensure a strong and equitable commercial relationship with North American partners. This review will be crucial in defining Mexico's economic direction in the coming years and in continuing to enhance its role as one of the main actors in international trade. It is essential for the country to strategically prepare for these negotiations and make the most of this opportunity to continue driving its economy and strengthening its commercial ties with the United States and Canada.