The Mexican government has formally announced that it has secured a deal with Chinese e-commerce colossus Alibaba Group Holding in an attempt to place Mexican products and services, especially those produced by SMEs onto the much-heralded e-commerce platform that is provided by Alibaba.
The announcement of the deal was publicly disclosed following the conclusion of a trade delegation in China which was led by Mexican President Enrique Pena Nieto. The talks focused mainly on trading and investment opportunities between both countries - as Mexico attempt to establish a strategy that allows it to diversify and open new markets for the country’s most sought after produce.
Mexico’s hand has been forced due to the uncertainty and ongoing threat which has been poised by US President Donald Trump’s repeated claims that he will terminate the North American Free Trade Agreement (NAFTA) that exists between the US, Mexico and Canada. That deal between the three countries is estimated to be worth about $1.2 billion in trilateral trade.
However, the Mexican President has wasted no time in exploring new opportunities in an effort to form and open up new trading channels for his country. His proactive approach has been praised by political commentators both domestically and internationally.
The announcement that the Mexican government has now secured a deal with one of the world’s largest corporations is a huge boost for the country’s economy and represents an exciting new chapter for its businesses. In addition to this, China’s vice trade minister, Wang Shouwen expressed their interest in potentially establishing a free trade agreement with Mexico.
The successful trade negotiation now puts pressure back on the Trump administration. The claims made by Trump have caused a lot of disruption and unsettlement amongst Canada and Mexico in relation to its North American Free Trade Agreement with the US.
However, Mexico has shown it has the ability to form new partnerships and business relationships with leading Chinese companies – and has the products and services to attract investment from overseas.