When the T-MEC is signed between the United States, Canada and Mexico, a transparent regulatory standard is established, where the three North American partners join their strengths in the integration of various sectors that seek to generate greater competitiveness in regional production chains.

The novelty of the 34-chapter agreement is that it began to include guidelines for Digital Commerce, Energy, Environment, Labor, Competitiveness, Good Regulatory Practices, Anti-corruption and Macroeconomic Policy, among many other current business topics.

The collaboration commitment between the three countries that entered into force on July 1, 2020, left great advantages by increasing regional content while promoting guidelines for environmental care in the midst of a balanced work environment for workers.

Of interest: Mexico advances in attracting investments from the United Kingdom and Germany

In the Mexican case, the greater stability of the exchange rate together with the labor reform that Mexico had to carry out to comply with the requirements of the treaty, favored both the economy and Mexican workers in similar conditions with their northern neighbors.

The rules of origin or criteria necessary to determine the national origin of a product are a relevant change brought by the T-MEC for industries such as: automotive and auto parts, textile and clothing goods, chemicals and electronic products, among others.

When a foreign country evaluates locating its production process in North America, it considers the advantages and disadvantages offered by the United States, Canada and Mexico. In the case of Asian companies, factors come into play that due to competition and other geopolitical elements can tip the balance more towards Mexico than the United States itself.

Cost issues and tax savings, as well as the availability of qualified labor are other factors where Mexico takes the lead supported by many more international trade agreements with various other countries.

The relative location and the possibility of moving merchandise from ports in the Atlantic, Pacific and Caribbean complement the geographical advantages that also favor the installation of companies in Mexican territory.

See also: Low industrial vacancy rates should trigger speculative investment in Mexico

States such as Coahuila, Nuevo León, San Luis Potosí, Guanajuato o Querétaro have highlighted the strengths of integration of their logistics and supply chains, the proximity to plants and the technical and professional development of the workforce in a country that has traditionally been an excellent recipient of foreign investment.

According to figures reviewed by the Ministry of Economy, the T-MEC reflected at the end of 2021 83.5% of exports, almost 46% of imports and managed to reach 64.5% of total trade in the country, without a doubt an important boost that has strengthened foreign direct investment in Mexico.

In the case of the industrial real estate sector, part of the strong dynamism that the sector registered at the end of 2021 is influenced by T-MEC, since the main northern cities accumulated almost 60% of the gross industrial demand, with just over 3.8 million square meters.