Mexico’s proximity to the world’s largest economy has been both a blessing and a curse. On one hand, Mexico enjoys easy access, with efficient trade routes, to an enormous market of wealthy consumers, particularly since the signing of the North American Free Trade Agreement. On the other hand, the allure of trade with such a market has made Mexico dependent on the U.S. for trade – and makes the Mexican economy more vulnerable to the trade war launched by the current U.S. administration. So far, Washington has pulled out of the Trans-Pacific Partnership, slapped tariffs on critical industrial goods like steel and aluminum and demanded that NAFTA be renegotiated. This approach is forcing Mexico to re-evaluate its own trade partnerships and strive for greater market diversification.
To be sure, Mexico has tried to diversify its export markets for years, in part by signing trade agreements with dozens of countries. In addition to joining the General Agreement on Tarif