The USMCA represents a “respite” for the economy

Note published in Mexico Industry, Industria [Industry] Section by Luis Méndez.
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The pandemic changed life in many aspects, uncertainty invaded many of the sectors that are vital for the economic development of a country, not knowing what the effects it would cause were filled the environment with even more uncertainty in being able to make a long-term projection for a company, experts agreed during the webinar organized by the Center for Research and Teaching in Economics (CIDE), where they also highlighted that the entry into force of the new United States-Mexico-Canada Agreement (USMCA) happened at the most appropriate time to help the national economy be reactivated more quickly.

In this sense, Luz María de la Mora, undersecretary of foreign trade, shared that the impact of the pandemic poses significant challenges due to the existing uncertainty; however, alternatives were sought to strengthen other sectors, highlighting the 30% increase in e-commerce and the increase in sales by the pharmaceutical industry.

On piece of information that has stood out during this worldwide health contingency is that due to online sales, companies such as Amazon and DHL have had to resort to hiring more human capital in order to meet the demand in parcel services, even benefiting the automotive sector through the acquisition of new units and indirectly generating another number of jobs.

Oscar de la Vega, a member of the CIDE, pointed out another one of the important points the USMCA has in the labor aspect is benefiting workers, who are the ones that drive the supply chain. The speaker values the quality of the Mexican work force, which is why he believes that it is sometimes undervalued and is not paid what it deserves, however, in terms of salaries there are other causes due to which a moderate salary is assigned.

In conclusion, Luz María de la Mora agreed that the work force has worldwide prestige and that the jobs that were lost due to crisis caused by the pandemic will be recovered thanks to the requirements of rules of origin included in the new treaty, taking into account that many Asian companies will have to settle in our country in order to be closer to their customers.