The USMCA Is Not Competitive Against China

Arturo Huerta G.

Economics Policy Note Archive from Levy Economics Institute

Abstract: The governments of the US and Canada are pressuring Mexico not to import products or accept investments from China, such that Mexico would be forced to import products from them instead. As a result, Mexico would be unable to leverage Chinese investments that could compromise the interests of the US and Canada. The Mexican government has yielded to such pressures and said it will reduce its relationship with China, choosing instead to buy from the US and Canada. The government is betting on greater integration and subordination with USMCA partners, despite a lack of improved development conditions for the country as a result. Mexico has not grown more than 2.4 percent on average per year and in the last six years the growth rate has been 0.7 percent on average per year, coupled with the foreign trade deficit and the growing dependence on capital inflows.

Date: 2025-08
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