As seen above, however, there is still room for Canada and Mexico to increase its share in U.S. trade. In addition, Mexico has trade agreements with 44 other countries, many regional, enabling the easier building of a regional supply chain with emerging economies that are demanding more and more consumer goods. In the long-term, Mexico’s labor force is projected to grow by 58% where China’s is expected to shrink by 3%. Finally, Mexico’s wages are not increasing at the rate of that of many Asian economies. China’s wages have increased to almost the level of Mexico’s- and for industries conscious of IP infringements, Mexico’s free trade agreements allow for enhanced protection- something China does not provide.
Let’s continue the China/Mexico comparison. Corruption is something to look at in both economies: