Nearshoring

• China remains modest player in U.S.–Mexico trade despite growing scrutiny

  Understanding Mexico’s evolving economic linkages with East Asia and China is critical to the future of the United States–Mexico–Canada Agreement (USMCA trade accord) and the nearshoring and integration of North American manufacturing supply chains.

  07/09/25

• Mexico nearshoring yet to yield big investment despite global trade tensions

  The resulting reality surrounding nearshoring’s impact on Mexico’s economy is nuanced. While Mexico has made gains, many of them stem from trade diversion rather than large-scale foreign capital relocation.

  12/05/24

• New Mexico draws on energy, trade to spur economy

  While New Mexico continues to navigate economic and demographic challenges, increased revenues from oil and gas production provide opportunities to invest in education, infrastructure and other improvements to boost long-term growth.

  12/04/24

• Electricity providers hard pressed to keep up with growing tech-heavy demand

  Dallas Fed economist Kunal Patel discusses the strains on the power grid, including those arising from Texas’ growing population, electrification of the economy, nearshoring and evolving technologies.

  07/10/24

• Strong peso, stubborn inflation cloud Mexico’s 2024 growth prospects

  Mexican economic performance is likely to slow in 2024, with stubborn inflation, rising labor costs and a strong peso posing downside risks. Conversely, nearshoring and a larger-than-expected fiscal impact could bolster the Mexican outlook.

  05/24/24

• Texas high tech shakes off post-pandemic slump, readies new growth path

  Texas is poised to lead in new advanced technologies, notably artificial intelligence (AI) and semiconductor manufacturing.

  05/03/24

• Mexico’s productivity woes limit nearshoring, growth potential

  Industrial policy reform, nearshoring and a deeper Mexico–U.S. partnership could provide tailwinds for Mexican economic growth. Whether Mexico can harness the full potential of such transformative change is less clear.

  04/16/24

• Development bank funds border infrastructure to aid U.S.–Mexico trade

  Calixto Mateos, former managing director of the North American Development Bank, discusses his work at the NADBank and its role enhancing trade.

  03/22/24

• Mexican peso strength noteworthy among emerging markets during Fed tightening

  Many emerging-market currencies have depreciated modestly during the Federal Reserve’s tightening cycle that began in March 2022. The Mexican peso, however, outperformed the group during the period.

  09/26/23

• Mexico seeks to solidify rank as top U.S. trade partner, push further past China

  Mexico's emergence followed fractious U.S. relations with China, which had moved past Canada to claim the top trading spot in 2014. The dynamic changed in 2018 when the U.S. imposed tariffs on China’s goods and with subsequent pandemic-era supply-chain disruptions that altered international trade and investment flows worldwide.

  07/11/23