Topic: 2024-Supply Chain Stability
Country: Mexico
Delegate Name: Devinicus Wong
The topic of supply chains is incredibly complicated, yet, for clear reasons, the topic is also vital for the economic success of nations worldwide. However, over the past few years, these supply chains have proven once again that they are unstable and prone to faltering, sparking major concern across the globe. In addition to a myriad of already existent problems such as labor shortages and an increase in strikes, events such as the Covid-19 pandemic and the breakout of new conflicts have led to shortages in many materials, such as grain and computer chips. Furthermore, many of these issues, such as natural disasters, are both unpredictable and unavoidable, leading to sudden disruptions. To minimize losses from these problems, many businesses are starting to shift away from large, globalized supply chains, which remain difficult to maintain, to more locally sourced supplies. Mexico seeks to take advantage of this shift to bolster its growing economy by rooting itself as a major part of supply chains on the American continent.
For its part, Mexico has reached a position where it could see massive economic growth in the upcoming decades. The general shift towards localized supply chains has allowed Mexico to double down on its efforts to promote nearshoring from U.S. businesses. Due to the nation’s geographic proximity, many U.S. companies and manufacturers have increased their reliance on Mexican products. Faster transportation, lower costs, and easier cross-border management have attracted businesses, and Mexico has worked extensively to continue this trend. Mexico has created multiple programs, such as the IMMEX maquiladora program, to incentivize businesses to center more of their operations in the country. Additionally, Mexico has entered into numerous free trade agreements with other nations, notably including the United States-Mexico-Canada Agreement (USMCA). This free trade allows for further growth of the economy, which will, in turn, allow for stronger supply chain development.
While the Mexican economy today is on a path to foreseeable growth, continuous effort is needed to ensure success. As such, the delegation of Mexico encourages nations to do their part in supporting businesses. We ask other countries to promote international trade and to remain open in their willingness to cooperate economically with others. We believe that a strong international economic system is important, not just because it is necessary to foster growth, but also due to its positive effects on international relations. The delegation of Mexico remains open to nations looking for free trade, and we will continue to work towards supply chain stability, as well as the economic prosperity of the region as a whole.
Sources:
https://aratum.com
https://www.britannica.com
https://www.cfodive.com
https://www.evansdist.com
https://napsintl.com
https://novalinkmx.com
https://ustr.gov
https://www.worldbank.org
