| U.S dumps China for Mexico |
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Mexico overtakes China as the number one location for manufacturing goods destined for the American market.
By Veronica Galan and Enrique Duarte November 3, 2009: 11:18 AM ET MEXICO CITY (CNNExpansion.com) -- Mexico did not have an extreme economic makeover, but the global recession was enough to defeat China as the number one place for American assembly-for-export factories, or maquiladoras. "For many companies that want to export to the United States, like the maquiladoras, Mexico's exchange rate will be seen as a stable and permanent advantage and we are going to see much stronger investment flows associated to this industry," said Cesar Hernandez, general director of foreign trade at the Mexican Trade Ministry. Mexico has become much more attractive, even Chinese companies are moving to the country to take advantage of the North American Free Trade Agreement (NAFTA) commercial and fiscal benefits and export to the United States, said different experts in foreign trade. "Compared to China and other manufacturing hubs, Mexico offers better access to North American markets with a shorter, faster and cheaper transportation route to move products and supplies by truck, rather than over thousands of miles by ship, rail, and truck combined," said Daniel Silva of the Mission Economic Development Authority. Maquiladoras are an extension of U.S. production of automobiles, electronics, apparel and many other goods designed for the export market. Maquiladoras are often owned and operated by foreign companies, who, even though they bring their equipment from the United States, pay for assembly, operating and labor costs in pesos, which allows their dollars to go much further. Complete CNNmoney article here |
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| Last Updated ( Wednesday, 04 November 2009 ) |
