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Mexico’s nearshoring potential likely to impact U.S. ag sector

A former ambassador to Mexico says the country’s president-elect has the potential to grow foreign-direct investment to new levels.

Earl Anthony Wayne tells Brownfield, “The potential for Mexico is tremendous.”

“They have grown the amount of foreign direct investment coming into Mexico, but they’re far below their potential as estimated by the Inter-American Development Bank and others,” he says.

John Deere and CNH Industrial have recently announced plans to move production to Mexico. But Wayne says challenges like quality infrastructure, access to electricity and water, and some public security concerns still undermine development.

“This new president-elect says that she wants to build on these opportunities and develop that near-showing capacity, the attractiveness of foreign direct investment,” he says.

Record foreign direct investment in Mexico last year surpassed more than $36 billion.

Demand for U.S. agricultural products has also grown with the additional investment. USDA is forecasting Mexico to buy more than $28.7 billion of ag goods this year. If realized, Mexico will become the country’s largest market for U.S. ag exports.

AUDIO: Earl Anthony Wayne, Former Ambassador to Mexico

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