Mexico is central to the productivity and prosperity of North America – particularly through its role as the United States’ largest trading partner. Whether it can turn this relationship into lasting domestic growth will depend on key policy choices that favour pragmatism over ideology.
Outsourcing some of its operations to neighbouring countries could help Mexico to reignite the economic dynamism that it has lost in recent years. But as it stands, this idea – known as ‘nearshoring’ – looks out of reach. So far, the nearshoring narrative has been more an ideal and an opportunity rather than the overwhelming reality it could be.
In 2025, Mexico traded $873 billion in goods with its main trading partner, the United States, and ranked among the top three trading partners of 36 of the 50 US states. It also drew a record $41 billion in foreign direct investment (FDI), although…
