Vietnam and Mexico Strengthening Economic Ties
Vietnam and Mexico are strengthening economic ties. When it comes to free trade agreements, Mexico is one of the most proactive nations in the world. The Latin American country boasts a trade network that rivals any. In recent years, Mexican economic ties have increased in scope and strength as the country becomes more globally integrated. Mexico has grown particularly close with several Asian partners, including the small Asian country of Vietnam.
Mexico’s International Trade Focus
Mexican economic ties have expanded globally over the past several decades, and most notably in recent years. In addition to being a member of the North American Free Trade Agreement (NAFTA) with the US and Canada, Mexico also has Reciprocal Investment Promotion and Protection Agreements (RIPPAs) with 33 countries and nine Economic Complementation and Partial Scope Agreements within the Latin American Integration Association (ALADI). Mexican economic ties are vast, and the country boasts free trade agreements with a total of 45 countries.
Mexico is further networked through important economic conventions like the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). Foreign investors who manufacture in Mexico have access to approximately 60% of the world’s GDP via Mexican economic ties.
Vietnam and Mexico
As Mexico becomes increasingly independent of the US and NAFTA, the manufacturing country is strengthening ties with Asian countries like Vietnam. The two countries established diplomatic relations in 1975, and economic relations followed suit. Bilateral trade between the two countries is rising at an annual rate of approximately 40%. In the first quarter of last year, it was valued at $776 million USD. The two countries have much in common and are fellow members of important economic institutions like:
- Asia-Pacific Economic Cooperation (APEC)
- Forum of East Asia-Latin America Cooperation
- Trans-Pacific Partnership Agreement (TPP)
Vietnam exports various resources to Mexico such as electronic devices and parts, leather footwear, seafood products, transport vehicles, and rubber. On the other hand, Mexico exports important resources to Vietnam such as computers and electronic parts, animal feeds, heavy equipment, and metals.
The two countries are strengthening their economic relations while Mexico matures as a vibrant international economic player. Both countries boast young, skilled workforces, a growing middle class, and inexpensive manufacturing labor. Mexican economic ties with Vietnam and other Asian countries enable Mexico to grow even more independent of NAFTA and the US and afford trade partners more preferential access to vital markets globally.
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