A new working group spearheaded by the University of California San Diego aims to propose policy recommendations for the relocation of global production chains in North America where it is economically advantageous, amidst the U.S.-China trade conflict and concerns over trade disruptions caused by Russia’s invasion of Ukraine. The working group includes the Center for U.S.-Mexican Studies (USMEX), the George W. Bush Institute, Canada’s Future Borders Coalition, and the Mexican Council on Foreign Relations. The group aims to strengthen North American economic integration, boost productivity, prosperity, and competitiveness of the United States, Mexico, Canada, and neighboring countries. Central America presents cost and access advantages that make it a strong potential link in North American supply chains. The working group, which includes former Deputy Prime Minister of Canada Anne McLellan and former Undersecretary of Foreign Trade in Mexico Juan Carlos Baker, among others, aims to produce clear, implementable recommendations for the benefit of the North American region.
New Working Group Proposes Policy Recommendations to Boost North American Competitiveness
Amidst the ongoing U.S.-China trade conflict and concerns over trade disruptions caused by Russia’s invasion of Ukraine, the discussion of regionalizing supply chains has gained prominence in North America. To leverage this opportunity, a new working group spearheaded by the University of California San Diego has been established to propose policy recommendations for the relocation of global production chains in North America where it is economically advantageous.
The working group, which includes the Center for U.S.-Mexican Studies (USMEX) at UC San Diego’s School of Global Policy and Strategy, the George W. Bush Institute, Canada’s Future Borders Coalition, and the Mexican Council on Foreign Relations, aims to strengthen North American economic integration, boost productivity, prosperity, and competitiveness of the United States, Mexico, Canada, and neighboring countries.
The group aims to leverage U.S. economic leadership to launch a new era of North American competitiveness, citing President Joe Biden’s two signature legislative accomplishments, the CHIPS and Science Act (CHIPS Act) and the Inflation Reduction Act (IRA), which focus on strengthening the U.S. industrial base, particularly regarding the manufacturing of semiconductors, electric vehicles, and products related to clean energy and the decarbonization of the U.S. economy.
According to Rafael Fernández de Castro, director of the Center for U.S.-Mexican Studies and member of the group’s steering committee, the consensus in Washington, D.C., that China represents a strategic rival to the U.S. calls for exploration of stronger supply chains in North America. The group aims to develop a road map to make nearshoring a reality for the region.
Both Canada and Mexico have proved to be essential partners for U.S. supply chains because of their geographical location as neighboring countries, reliability as partners, complementary economic strengths, and the framework provided by the United States-Mexico-Canada Agreement (USMCA). The working group is focused on proposing policy approaches to ensure that current opportunities strengthen North American economic integration, with the aim of boosting productivity, prosperity, and competitiveness of the region.
New Working Group Aims to Strengthen North American Supply Chains
According to a recent report, Central America presents cost and access advantages that make it a strong potential link in North American supply chains. To leverage this opportunity, a new working group, led by three women with distinguished careers in public service and think tanks in Canada, the U.S., and Mexico, has been assembled.
The group, which includes former Deputy Prime Minister of Canada Anne McLellan, former Undersecretary of Foreign Trade in Mexico Juan Carlos Baker, and individuals from the Mexican firm Deacero and Harvard Kennedy School, among others, aims to produce clear, implementable recommendations for the benefit of the North American region. They will meet virtually throughout 2023 and issue a series of policy recommendations in early 2024, which is a critical year for North America since both Mexico and the U.S. will hold presidential elections.
For more information on the working group, visit their website.
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