By José Ángel de la Paz

The entry into force of the United States-Mexico-Canada Agreement (USMCA) can cut the economic cost of the COVID-19 pandemic and help economic growth, but it would be a mistake to assume that this will just happen with its implementation, warned Ignacio de la Vega.

“The government, entrepreneurs, trade unions and all the different sectors need to join together in order to understand the challenges and opportunities offered by USMCA,” emphasized the Dean of EGADE Business School and the School of Business of Tec de Monterrey.

In the webinar “New business opportunities for the Mexico-US relationship” from the  EGADE Future Forum series, Christopher Landau considered that the new trade agreement represents “a golden moment” for the three nations to attract investments to the region, although it is not “a magic wand that will change everything”.

“COVID-19 will mark a seminal moment in the history of our countries. As in any crisis, opportunities are created. The entry into force of the new agreement creates an extremely important platform for the economic acceleration of North America’s Big Three; it will open up doors and it’s up to all of us to take advantage of it,” said the United States ambassador to Mexico.

Jorge Torres, President of FedEx Express in Mexico and graduate from EGADE Business School’s Global OneMBA, highlighted that the North America region has historically demonstrated a willingness to progress with regards to trade and, with the contingency, the entry into force of USMCA has become very timely.

“The generation of 67% of Mexico’s GDP relies on international trade. Eighty percent of the goods that Mexico exports go to the United States, while 15% of US global trade is with Mexico. Sharing a border is a competitive advantage. Our value chains are highly integrated. We are more than neighbors; we are the best of allies. Our well-being hinges on our capacity to build bridges of dialogue and negotiation,” explained the also President of the American Chamber of Commerce of Mexico (AmCham).

De la Vega commented that the pandemic and the trade war between the United States and China have pushed companies established in Asia to look towards Mexico, encouraged by USMCA and the country’s strategic geographic location.

“I assure you that other countries, such as Vietnam and India, are knocking on the door of companies that are currently in China,” Landau observed.

At the closing of the webinar, Igor Rivera, director of the EGADE - W. P. Carey Executive MBA, presented this new executive program s the result of a partnership between EGADE Business School and the W. P. Carey School of Business at Arizona State University.

The EGADE - W. P. Carey Executive MBA, which begins in January 2021 in Mexico City, is an international double degree program with a fast-track format designed to transform and advance the journey of those executives who have their eyes set on senior management.