Modernization and signing of the TLCUEM will benefit the Bajío: IMCO

Faced with a possible economic recession, a high level of inflation and that investors are being cautious, the Bajio region could have greater economic competitiveness if modernization is achieved and the signing of the Free Trade Agreement between the European Union and Mexico (TLCUEM), considered the Mexican Institute for Competitiveness (Imco) and the Friedrich Naumann Foundation for Liberty in the report Europe and the Mexican Bajío: a relationship with potential.

According to the report, large areas of opportunity are opening up for the region made up of San Luis Potosí, Querétaro, Guanajuato, Aguascalientes, Michoacán, Jalisco and Zacatecas, since the European Union seeks to diversify its investment portfolio and generate bilateral economic relations to alleviate the adverse economic context.

The Friedrich Naumann Foundation and the imco recalled that the agreement between Mexico and the European Union It has been two years without being signed, precisely the last time the TLCUEM It was in 2020, when the negotiation process concluded and target dates were established.

“The necessary procedures for the entry into force of the new TLCUEM have not been completed, including the legal review of the agreement by both parties, as well as its translation into all EU languages ​​and the proposal of the European Commission to the Council and the European Parliament for signature and ratification. Modernization remains pending to strengthen the opportunities that the treaty represents for both economies”, the document deepened.

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The imco He specified that it was in 2015 when the Ministry of Economy of Mexico and the Commerce Commissioner of the European Comission meetings began to modernize the TLCUEM. After this formalization process, Mexico and the European Union held the first round of negotiations during June 2016, for 2017 and 2018 issues such as competition, support for SMEs, transparency and sustainable development were discussed.

The study indicates that the TLCUEMalthough it will benefit the entire country, the Bajío region will be the most benefited, precisely because it is the one that generates the most interest in the European market, added to the fact that it stands out as one of the largest recipients of Foreign direct investment (IED) from the European Union.

For example, between 2012 and 2021, 26% of the IED europea headed to the region. In general, 24% of the FDI that Mexico receives from the world goes to one of the seven states included in the Bajío region.

In addition, the weight of Europe as an investor also varies, while in San Luis Potosí 44% of FDI comes from the EU, in Aguascalientes that proportion is barely 12%”, the document detailed.

Regarding the most dynamic sectors with the greatest potential for this region, four sectors stand out: the manufacture of transport equipment, the beverage and tobacco industry, credit and financial institutions, as well as the generation and distribution of electricity .

Other strategic sectors for European investment are telecommunications, the plastic and rubber industry, chemicals, as well as temporary accommodation services.

Opportunities for the Bajío

The report specified that among the variables of economic performance at the state level analyzed by the European Union, the Shallows stands out for its labor force, which is in a better scenario of competitiveness.

This is where one of the greatest bonuses of young populations is concentrated, in addition to the fact that the careers most frequently studied in the Bajío are industrial engineering, electronic engineering and mechanical engineering, as well as chemistry.

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