Back

COMEXI-PCNS webinar series 2024: Nearshoring boom: lessons from Mexico and Morocco

May 30, 2024
Related topics: 

Nearshoring in Mexico

Nearshoring in Mexico presents both importance and challenges for businesses. The country's proximity to the United States, its largest trading partner, offers strategic advantages such as reduced transportation costs and shorter lead times, making it an attractive destination for nearshoring operations. Additionally, Mexico boasts a skilled labor force, particularly in industries like automotive, aerospace, and electronics manufacturing, which align well with the needs of many nearshoring companies. Moreover, Mexico benefits from trade agreements like the USMCA (United States-Mexico-Canada Agreement), providing preferential access to key markets. However, nearshoring in Mexico also faces challenges, including security concerns in certain regions, bureaucratic hurdles, and regulatory complexities that may impede the ease of doing business. Infrastructure constraints, such as inadequate transportation networks and energy supply, can increase operational costs and pose logistical challenges for companies. Addressing these challenges while leveraging Mexico's strategic advantages is crucial for maximizing the potential of nearshoring in the country.

Nearshoring in Morocco

Nearshoring in Morocco is significant due to its proximity to Europe. This stability, coupled with developed infrastructure and efficient logistics, facilitates seamless operations and reduces investor uncertainties. It offers advantages like reduced transportation costs and access to a skilled workforce, particularly in the engineering and IT sectors. Trade agreements and government investments in infrastructure support nearshoring activities, making Morocco attractive for European companies to optimize their supply chains. The country's political stability, developed infrastructure, and efficient logistics bolster its appeal to investors. Macro factors such as trade openness and stable exchange rates further enhance its attractiveness. Moreover, Morocco boasts solid legal frameworks that prioritize and protect business rights and economic incentives, ensuring a stable and predictable business environment. However, challenges persist, including skill mismatches, technology transfer, and SME upgrading. Addressing these, alongside pressing concerns like achieving carbon neutrality and digitalizing the economy, is essential for Morocco to fully leverage its potential as a competitive nearshoring hub and sustain its appeal to foreign investors.

Importance of the webinar

In this context, the exchange of experiences and lessons learned between Mexico and Morocco is instrumental in bolstering their nearshoring opportunities and overcoming challenges in this domain. By sharing insights into their respective nearshoring endeavors, both countries can leverage each other's strengths and address common obstacles more effectively. Through collaboration and knowledge sharing, COMEXI and PCNS can contribute to identifying innovative solutions, actionable strategies, and the maximal capitalization of trends in the global nearshoring landscape. This exchange can also result in ideas that foster mutual growth and competitiveness in the nearshoring sector, that help drive economic development and create new opportunities for both nations.

RELATED CONTENT

  • Colombia: Getting Peace, Getting Growth
    Authors
    Otaviano Canuto
    Diana Quintero
    March 23, 2017
    Colombia is a country of incredible contrast: known to be one of the places on earth where people feel happiest, it is also one of the most unequal and for many decades, a country immersed in a protracted conflict. Despite the latter - and here is the starkest contrast - Colombia has recently succeeded in reducing poverty and building the foundations for sustainable growth and prosperity. The Santos administration has delivered on two of its main promises: sign a peace agreement wi ...
  • Download PDF
    Public service delivery – What matters for successful implementation and what can policy leaders do?
    Authors
    Landry Signé
    March 20, 2017
    Why do policy implementation and public service delivery too often fail to achieve the goals initially formulated by policy leaders, and how to fix it? What matters for successful implementation and what can policy leaders do? In a previous paper, we proposed a synthesis of the study of policy implementation and the cause of policy failure. This policy paper explains the key factors leading to policy success, and provides policymakers with actionable solutions to help formulate and ...
  • Egalité de genre, politiques publiques et croissance économique au Maroc
    Authors
    Coordonné par
    Rim Berahab
    Zineb Bouba
    Appui technique: Pierre-Richard Agénor
    March 9, 2017
    Dans le sillage des débats actuels sur la contribution de la femme à la création de richesses, le présent ouvrage s’essaye d’y contribuer moyennant des approches méthodologiques innovantes couvrant plusieurs champs d’analyse conciliant l’égalité de genre, les politiques publiques et la croissance économique au Maroc. Il offre, ainsi, un diagnostic exhaustif de l’évolution des inégalités de genre en termes, notamment, d'accès à l'emploi, à l'éducation, à la santé, à l'infrastructure, ...
  • NAFTA in Play: How President Trump could reshape trade in North America
    Authors
    Uri Dadush
    March 7, 2017
    During his run for President of the United States, Mr. Trump called the North American Free Trade Agreement (NAFTA), “the worst trade deal ever approved by this country”. His target is Mexico, which runs a $ 50 billion surplus of trade in goods and services with the United States. Trade with Canada, the third NAFTA party, is essentially balanced. However, NAFTA’s provisions cannot be changed without affecting Canada and without Canada’s consent, and the Foreign Ministers of Canada a ...
  • Download PDF
    Architecture Africaine de Paix et de Sécurité : Pertinence dans la conception et difficultés dans les réalisations
    Authors
    Abdelhak Bassou
    March 6, 2017
    La grande question qui interpelle les Africains, dans le domaine de la sauvegarde de la Paix et de la sécurité, reste celle de savoir si l’organisation panafricaine qui ambitionne de mener le continent vers la paix et la prospérité auxquelles le prédisposent ses potentialités de ressources humaines et matérielles, peut assurer la réalisation de ces ambitions avec ses propres institutions ? Autrement dit l’Union Africaine peut-elle gérer les crises africaines avec des moyens africain ...
  • Download PDF
    African Architecture for Peace and Security: Design relevance and achievement challenges
    Authors
    Abdelhak Bassou
    March 6, 2017
    The big question for Africans on safeguarding peace and security is whether the Pan-African organization, which aspires to lead the continent towards peace and prosperity and to which the continent’s predisposed human and material resource potential, is able to ensure the fulfillment of these ambitions through its own institutions? In other words, can the African Union manage African crises with independent African means? This fundamental question calls for other more intermediate ...
  • Download PDF
    Policy Implementation – A synthesis of the Study of Policy Implementation and the Causes of Policy Failure
    Authors
    Landry Signé
    March 1, 2017
    What is implementation in public policy? What are the determinants of policy implementation and service delivery? What could be learned from the key moments of the study of policy implementation? This policy paper proposes a synthesis of the study of policy implementation and the cause of policy failure. It explains why critical differences often occur between the initially formulated goals of a public policy and the final outputs after its implementation. This insight is extremely ...
  • Download PDF
    Le grand retour du Maroc à l’Union Africaine
    Authors
    Abdallah Saaf
    February 27, 2017
    Les liens du Maroc avec l’Afrique à travers différentes composantes n’ont jamais été rompus. Point n’est besoin de montrer leur enracinement dans l’histoire profonde. Mais les récents développements constituent un événement marquant et sans doute lourd de signification. Est-ce un élément de déclic, une victoire qui conclut un épisode diplomatique parmi d’autres, une normalisation, la réponse à des difficultés conjoncturelles, un booster, un point d’inflexion, un événement majeur ? ...
  • Download PDF
    Morocco’s great return to the African Union
    Authors
    Abdallah Saaf
    February 27, 2017
    Morocco's ties with Africa through various aspects have never been broken. There is no need to prove its roots within deep history. However, the recent developments constitute a major event of important significance. Is it a turning point, a victory that concludes a diplomatic episode among others, a normalization, a response to cyclical difficulties, a booster, an inflection point, or a major event? ...
  • Download PDF
    The Mist of Central Bank Balance Sheets
    Authors
    Matheus Cavallari
    Otaviano Canuto
    February 23, 2017
    Central banks of large advanced and many emerging market economies have recently gone through a period of extraordinary expansion of balance sheets and are all now possibly facing a transition to less abnormal times. However, the fact that one group is comprised by global reserve issuers and the other by bystanders receiving impacts of the former’s policies carries substantively different implications. Furthermore, using Brazil and the U.S. as examples, we also illustrate how the re ...