Mexico has revealed a new economic development plan with targets to restore its declining share of global trade alongside Canada and the US, Bloomberg reports. The plan highlights North American cooperation, casting the US-Mexico-Canada free trade agreement (USMCA) as the countries’ best bet to counter China’s dominance in global trade.

What we know: The new plan aims to raise FDI as a percentage of GDP by 25% and offer incentives to encourage investments from Mexico’s neighbors working on nearshoring their supply chains away from China. Export manufacturers would also benefit from speeding up permits and incentives for adopting higher percentages of local components, which the government hopes to reach 15% in its exported goods by 2030.

What the Mexicans are saying: If regionally produced goods replace 10% of Chinese imports, the GDP of Mexico, the US, and Canada would grow by 1.2%, 0.8%, and 0.2%, respectively, according to a government statement, citing Finance Secretary Rogelio Ramírez de la O. The USMCA is the “only way we can compete with Asian countries, particularly with China,” he added.

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  • US blacklists firm that ordered TSMC chip found in Huawei processor: The US placed 14 China-based and two Singapore-based companies on its restricted trade list, including a company whose TSMC-manufactured chip was unlawfully integrated into a Huawei artificial intelligence processor. Firms on the list cannot receive goods or technology exports without a license. (Reuters)
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