China sells us and does not buy from us. The head of the Ministry of Finance and Public Credit (SHCP), Rogelio Ramirez de la O, warned this Saturday that a review of trade between Mexico and Chinabecause currently It is not reciprocal.
During the “Economic balance on industrial development and T-MEC”, in San Luis Potosí, the secretary mentioned that currently Mexico buys products from China worth 119 billion dollars per year and sells 11 billion.
Ramírez de la O accompanied the president Andres Manuel Lopez Obrador the tour of San Luis Potosí, which was also attended by the Secretary of Economy, Raquel Buenrostro, and the future secretary Marcelo Ebrard and the president-elect of Mexico, Claudia Sheinbaum.
Ramírez de la O recalled that in 2021, President López Obrador entrusted him with developing the “Mexico Plan”with the aim of increasing national production and reducing dependence on imports, and with which the country seeks to raise awareness about the need to produce more than it consumes.
He also referred to the Trade and geopolitical tensions between the United States and Chinareferring to the tariff rates imposed by the US government on Chinese imports since 2018.
He also noted that the advantages of producing in China for American and Mexican companies have diminished due to rising ocean freight rates and supply chain problems.
“We are relying too much on China for basic household products, and we are considering making that change in our investment policy and in our attention to foreign investment,” said the official.
He noted that with the policy of producing more, China increased its share of global exports at the expense of North America.
“In 2020, the United States government facilitated China’s entry into the World Trade Organization. This opened the door for China to increase its production for the North American market, not only the United States, but also Mexico,” he said.
In this way, China increased its global exports from 3.8 percent to 14 percent in just 22 years, largely at North America’s expense.
In addition, the participation of North Americathat is, the United States, Mexico and Canada, fell from 19 percent in 2000 to 13 percent in 2022.
“As China’s exports to the North American market increase, global trade gains indicate that China’s share of global GDP has increased from 3.6 percent to 18 percent of global GDP,” he said.
“The share of North America dropped from 35 to 29 percent, and the share of the United States, as part of North America, dropped from 30 to 25 percent. It is logical that both Americans and Mexicans are demanding our fair share of this global demand, and that is why we have the Plan Mexico.”
Dependence on China
Before López Obrador, Ramírez de la O said that the North American Free Trade Agreement region remains highly dependent on Chinese imports, and in the particular case of Mexico, it depends on China for 19.6 percent of all its imports.
“This is a situation that has led to a feeling of greater protection for our industries, and this feeling has grown both in the United States and in Mexico,” said the Secretary of the Treasury.
He said that there are many Mexican industrialists who went to produce in China thinking that they would find lower salaries and at the same time a larger market to sell in that country, but today those advantages have already disappeared because Ocean freight rates from Asia to North America have exploded upwards.
“Mexico has to do its own review because we buy 119 billion dollars a year from China and sell 11 billion to China. China sells us and does not buy from usand that is not reciprocal trade. So we have great opportunities to produce more, to have this plant in Mexico, to create more jobs in Mexico and with this we will maintain our industry, our employment and our salaries,” he said.
Ramírez de la O said that the Mexico plan is not only promoting trade relations with the United States, but also employment.
- Join the channel community Debate on WhatsApp and receive the most relevant
- Haven’t you checked out Amazon? Check out THIS LINK their best products.
#China #sells #buy #reciprocal #trade #warns #Secretary #Treasury
