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Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service provider or using indirect channels with distributors or intermediaries.
Sixty percent of goods in Mexico are distributed by trucks. Mexico has a modern highway system, primarily comprising toll roads, connecting the main industrial areas located in the Mexico CityGuadalajaraMonterrey triangle. Outside this area, road transportation is more challenging.
The new USMCA enables Mexico to deepen its productive integration in North America and to benefit from the opportunities it offers to promote trade and investment, which are essential to our economic growth, job creation and above all, to help us reduce long-term regional and income inequalities.
At the same time, trade liberalization can have adjustment costs and job losses in other industries and regions of the country. The U.S. International Trade Commission estimated that, if fully implemented, Mexico's USMCA labor commitments would increase Mexican union wages and help reduce wage disparity.
Most passengers and freight are transported via Mexico's highway system, notably by interstate buses and cross-country trucking, respectively. Trucks also carry most of the exports from Mexico's maquiladoras to U.S. markets.
Mexico has 13 Free Trade Agreements (FTAs) with 50 countriesincluding USMCA and FTAs with the European Union, European Free Trade Area, Japan, Israel, 10 countries in Latin America, and the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The USMCA's entry into force increases the stability of the Mexico-US trade relationship (worth USD614. 5 billion in 2019), but sunset provisions threaten to generate trade regulation uncertainty every six years. Overall, the USMCA is highly positive for Mexico, with 83.5% of its exports sold to the US in 2019.
The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses.
The United States, Mexico, and Canada updated NAFTA to create the new USMCA. USMCA is mutually beneficial for North American workers, farmers, ranchers, and businesses.
Mexico's Higher Costs Under USMCA May Potentially Offset Gains from China-Related Trade Spurt with U.S. Approval of the United StatesMexicoCanada Agreement (USMCA) could change trade within the North American region, affecting output and weakening North America's global competitiveness.