With most reporting on Mexico focused on illegal immigration, poverty and the drug wars, it’s not hard to see why so many Americans view Mexico as the archetypical annoying neighbor. But it actually has a bright future ahead, as Shannon K. O’Neil’s new Foreign Affairs piece explains:
“Mexico’s economy is now one of the most open in the world. Mexico boasts free-trade agreements with over 40 countries and a trade-to-GDP ratio — a common measure of economic openness — above 60 percent, surpassing the United States, Brazil, and even China. And whereas oil once represented over 75 percent of Mexico’s exports, today it is manufactured goods that produce three out of every four export dollars” (…)“If Mexico is able to make its legislative changes stick and harness its geostrategic potential, the country will excel over the next five years, benefiting its people and making it a good bet for investors.”
Mexico is a country on the rise. President Peña Nieto’s economic reforms appear to be going quite well. He recently succeeded in passing legislation that finally allows for foreign investment in Mexico’s promising energy sector, and the country pulled in over $7 billion in investments this week at Davos. Furthermore, the Trans-Pacific Partnership (TPP) currently under negotiation will get Mexico into an economic bloc representing two-thirds of global trade.Indeed, good news for Mexico is good news for the United States. It is, after all, America’s second-largest trading partner, so a vibrant Mexican economy can only help the U.S. economy. Read the whole thing.