The North American Leaders Summit was a success. On the agenda, they highlighted the issues on which there is an agreement and work is being done jointly, while the others, as should happen in these cases, were bracketed and have their own mechanisms to be resolved. Most importantly, the concept of North America as a successful trade union is maintained, which is strengthened by the regionalization processes.
The idea of substituting imports was discussed, when in reality what is intended is to increase the national content of what is produced in the region, for local consumption or exports. A committee was created for that purpose, which will be led by Mexico’s Secretary Buenrostro and Foreign Minister Marcelo Ebrard, who has been the main promoter of the idea as an area of opportunity for Mexico. This is a welcome conceptual shift with respect to the role of governments in generating trade between them.
The treaty works, in commercial terms, because tariff and non-tariff barriers are eliminated, such as those that are resolved in the panels, which hinder transactions and investment. Now, at the summit, it was agreed, in fact, to develop an industrial policy that does not leave the market alone in the task of determining the composition on the origin of the content of the inputs, but rather seeks to increase the use of those that are produced in the region. This, due to its complexity, requires joint actions to invest in infrastructure, develop and transfer technology, establish new financing mechanisms and identify strategic industries for the purpose of nearshoring. That, in addition to greater trade, will trigger investment, growth and employment in the three countries.
What should be done from the governments is more or less clear, improve logistics infrastructure, customs, invest in human capital and facilitate labor mobility, adapt technical standards and reduce procedures, facilitate the installation and expansion of facilities industries, support smaller supply companies with financing and technology, as well as generate innovation processes in industrial activities. That requires policies such as reactivating the hitherto insignificant Bank of North America to finance infrastructure projects on both sides of the border.
The substitution of inputs imported from Europe or Asia, by North Americans, is a phenomenon that already occurs in Mexico and that can be accelerated, both in industries with low added value, but with high job creation, such as textiles, footwear or toys, than in other more sophisticated ones that already operate massively in the country, such as automobiles or electronics. It is also possible to build conditions to promote other less established industries, such as aerospace, electro-mobility and equipment for technology companies, with very high added value. This means that it is possible to activate the productive chains of a good part of the north and center of the country, and start by reversing the endemic lack of investment in the country.
This means that it is possible to achieve that trade with North America is also a more powerful engine of economic growth for the country, which is reflected in greater prosperity and income for millions of people in various regions of the country, along the borders, naturally. , but also in the rest of the country, if the industrial policies to generate greater national content, of the three countries, work. That is why the North American Leaders Summit meant a very important watershed for the economic growth of our country and was a success that will be reflected in the construction of a more prosperous country.
Twitter: @vidallerenas
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