A renewed North American free-trade agreement alone cannot spur Mexican economic growth in Mexico, the Private Sector Center for Economic Studies (CEESP) said in its weekly report Sunday, Dec. 15.
To accomplish growth, Mexico will need to take additional measures, namely modernizing its productive sector, the CEESP report said.
“Once it takes effect, the agreement is expected to have a significant impact on economic growth and improved employment,” the center said, referring to the United States-Mexico-Canada Agreement (USMCA), which is awaiting final approval in Washington and Ottawa.
“The USMCA is a necessary factor (for growth), but it is not enough to achieve those objectives,” said the center, which is run by the Business Coordinating Council (CCE).
The report went on to say that “other factors are needed that will lead to a modernization of the economy, so that it will be possible to take full advantage of the opportunities that arise” from the free-trade deal.
Mexico, the CEESP report said, will also need to take measures to boost productivity and lower the costs of production.
In addition, the agricultural sector needs to be modernized to improve efficiency so it can compete on a large scale, the report said.
In 2018, Mexico, Latin America’s second-largest economy after Brazil, saw a 2.1 percent growth in GDP.
This year, the country will most like register just .1 percent growth.