The birth of a new commercial era for Mexico and the U.S.

The path to a better economy

MEXICO.– Much has changed in the relationship between Mexico and the United States; today the door has been opened for increased commercial collaboration. Every day more U.S. functionaries favor commercial ties between the two countries — throughout the nation and not just in the border region.

The Daily Beast recently published an article about the growing U.S. interest in creating new cooperative strategies. U.S. governors consider that increasing exports to Mexico, attracting investors and increasing jobs is one of the main points on the agenda. Many politicians have recently emphasized the idea of strengthening ties with Mexico, instead of pursuing more anti-migration laws as a campaign platform.

The tide has shifted, deportations have increased during Barack Obama's presidency, and migration to the U.S. is at historically low levels due to the current U.S. economic climate. Now the U.S. sees Mexico as a potential lifesaver and a big part of economic recovery.

Barack Obama with Mexican leaders
Barack Obama with Mexican leaders

Mexico ranks second in terms of U.S. exports, just after Canada. President Obama has visited Mexico five times, and just in 2014 more than 17 large companies expressed interest in looking for opportunities in Mexico, which has become the 12th largest economy in the world.

It is estimated that the ties between these countries generate over 6 million jobs, which would translate to $535 million in profits. Surprisingly 23 states registered Mexico as their most important client. Only 1 percent of U.S. companies export their products; this sector generates 14 percent of the gross domestic product. What would happen if more companies began exporting?

Some states have established service offices in Mexico City, to better connect with new clients and opportunities; such is the case with Illinois.

California and Arizona have showed interest in improving the current border-crossing dynamic, to promote better working opportunities on both sides of the border.

Governor of Queretaro, José Calzada, with Mayor of San Diego, Kevin Faulconer
Governor of Queretaro, José Calzada, with Mayor of San Diego, Kevin Faulconer

It is worth mentioning that these efforts are not limited to the bordering states. Mayor of San Diego, Kevin Faulconer has shown interest in expanding the relationship between the city and the cities of Tijuana and Queretaro. Colorado has approached Pemex and Mexico's Federal Commission of Electricity to develop projects; Massachusetts has eyed Zacatecas, and other states are doing the same.

From 2012 to 2013 U.S. investment in Mexico increased by 11 percent, which equates to $27.9 billion. Also, Mexican entrepreneurs have been the primary investor's visa applicants at the U.S. Consulate. In 2013 more than 4 thousand were granted.

Tijuana as an agent for global change

U.S. interest in Mexico extends past the border, but we cannot disregard Tijuana's privileged position when compared to other Mexican cities.

Innovation, ease of investment, quality education, good food and easy transportation to and from the city, are just some of the benefits that the border city offers. Municipal President of Tijuana, Jorge Astiazarán, has dedicated a large percent of his term to incentivizing investment, since he considers this to be the best way to generate jobs.

Jorge Astiazarán at the event "Mexico's Muscle, Revealing the Strength"
Jorge Astiazarán at the event "Mexico's Muscle, Revealing the Strength"

In an interview with Foreign Affairs, Astiazarán indicated that Tijuana was Mexico's main producer of medical equipment, electronics, automobiles, and that it is unique in terms of aerospace technology.

Tijuana has received most of its international fame due to the wave of violence that began over four years ago, but has been reborn as a bed of opportunity. This is being echoed across the state; Baja California hosts 25 percent of the foreign companies that operate in Mexico. The State Government has doubled its efforts to establish a train route to reconnect Mexico with the U.S., Central and South America, in order to transport more products without recurring to local ports and adding to congestion.

Astiazarán emphasized that there is still violence, but the index has dramatically decreased and is far less than what is commonly believed, and as long as the citizens continue to involve themselves in this positive transformation, the city will head in an excellent direction.

Brenda.Colon@sandiegored.com

borderzonie@gmail.com

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