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Mexico rules out joining BRICS trade bloc, will strengthen USMCA

Friday, 18 October 2024 11:38:58 (GMT+3)   |   San Diego
       

The new Mexican government denied that there is interest in the Mexican economy to join the block of emerging economies known as BRICS: Brazil, Russia, India, China and South Africa. It said that Mexico's priority is to strengthen the link with its partners in the United States-Mexico-Canada Agreement (USMCA).

" At this moment, we are proposing the strength of the treaty, of the USMCA," responded the president of Mexico, Claudia Sheinbaum, in her morning press conference on Thursday in Mexico City, to a question from a reporter. Sheinbaum has been in office as president of Mexico for less than 20 days. In the previous government, international media mentioned that Mexico was interested in joining the BRICS. “Our interest is to strengthen the trade agreement with the United States and Canada (USMCA) (...) There is a lot of interest in investing in Mexico and, regardless of the election in the United States, whether Donald Trump or Vice President Kamala Harris is president, this commercial relationship will continue,” she said.

BRICS is the acronym for the founding countries of the trade bloc: Brazil, Russia, India, China and South Africa. Currently, it has other members: Egypt, Iran, the United Arab Emirates and Ethiopia) and possibly Saudi Arabia will also be part of it.

The United States is the largest investor in Mexico. Foreign Direct Investment (FDI) from the United States to Mexico from January 2006 to June 2024 was $243 billion, 41.3 percent of total FDI. The second largest investor is Spain with 9.7 percent of the total.

The United States is the final destination for 83.0 percent of all Mexican exports. In the steel industry, it is the main exporter of steel to Mexico (31.0 percent between January and August) and the main buyer of Mexican steel (76.1 percent).


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