In a significant announcement, the newly elected Mexican government has clarified its position regarding international economic alliances, stating that it will not pursue membership in the BRICS group of emerging economies. Instead, President Claudia Sheinbaum emphasized a commitment to reinforcing the United States-Mexico-Canada Agreement as the priority for Mexico's economic strategy. This declaration came just weeks after Sheinbaum took office, highlighting a shift in focus from the previous administration's interest in BRICS.
During a press conference in Mexico City, President Sheinbaum responded to inquiries about the country’s stance on BRICS, which includes Brazil, Russia, India, China, South Africa, and additional members like Egypt and Iran. She firmly stated, “At this moment, we are proposing the strength of the treaty, of the USMCA,” signaling a clear intent to deepen economic ties with the United States and Canada. This strategic choice reflects Mexico's prioritization of established partnerships over potential new alliances.
The USMCA plays a crucial role in Mexico's economy, with the United States as its largest trading partner. Since the agreement's inception, it has facilitated a significant flow of goods and services across borders. The data illustrates the deep interdependence: from January 2006 to June 2024, Foreign Direct Investment (FDI) from the United States to Mexico reached $243 billion, accounting for 41.3% of total FDI in the country. Spain follows as the second-largest investor, holding just 9.7%.
Moreover, trade statistics reveal that the United States is the primary destination for Mexican exports, receiving 83% of all exported goods. In the steel sector, the United States not only leads as the main supplier of steel to Mexico, providing 31% of imports from January to August, but also acts as the dominant market for Mexican steel, purchasing 76.1% of its exports. This illustrates the vital role the US plays in Mexico’s steel industry and overall economic landscape.
The decision to prioritize the USMCA over joining BRICS comes amid evolving geopolitical dynamics. While BRICS presents an alternative platform for economic cooperation, particularly among emerging markets, Mexico appears to be favoring its existing relationships that promise stability and immediate benefits. The Sheinbaum administration believes that strengthening ties with US and Canadian partners will foster investment and support economic growth.
