TAKEAWAYS
export competitiveness, but also introduces new challenges for foreign direct investment. • Trade dominance: The competitiveness of Mexican commerce is on display as trade volumes through Laredo, Texas have been consistently rising, surpassing traditionally dominant international ports. For 15 of the past 16 months, Laredo has seen higher throughput than the Port of LA/Long Beach, which once processed nearly 50% of all foreign imports. • Labor: Spurred by rising labor costs in Asia and ongoing trade disputes, Mexico continues to grow as a manufacturing and commerce hub, both with the United States and globally. Imports from Asia into Mexico have risen, pointing to the growth in Mexican ports as a way to work around U.S. tariffs on Asian goods. • Safety: The new administration under President- elect Claudia Sheinbaum vows to improve security on Mexican highways, responding to long-standing concerns. This includes increased law enforcement presence, which should have positive impacts on future trade volumes and safety.
Cross-border commerce and nearshoring have been a growing focus for many global shippers over the past few years—and events resulting from Mexico’s historic election in June 2024 seem to indicate that trend will continue. That’s the consensus from Redwood Mexico’s Q3 Cross- Border Index . The election, which saw the country choose its first female president amid unprecedented levels of violence, has led to notable shifts that impact the U.S.-Mexico trade landscape, including the peso’s devaluation, shifting market dynamics, and an increased call for security. The report highlights these shifting trends: • Currency complexity: The peso’s devaluation has provided relief for Mexican truckers and boosted ALL EYES ON MEXICO
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TEMP CONTROL PORT DRAYAGE YARD MGMT SUPPORT FULL TRUCKLOAD POWER ONLY AUTOMOTIVE PARTS FOODSTUFFS LOGISTICS
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