Mexico City – European investors are increasingly viewing Mexico as a strategic gateway to the North American market, leveraging the United States-Mexico-Canada Agreement (USMCA), according to André Driessen, the Netherlands’ ambassador to Mexico. Driessen emphasized the importance of a smooth upcoming review of the trade agreement to maintain investment stability.
Speaking on Wednesday, Driessen stated that the proximity and established bilateral relationship between Mexico and the United States are key attractions for European firms. Although, he also noted that concluding agreements with other global blocs presents additional avenues for investment. “Concluding agreements with other blocks of the world also shows that there are other options, other paths,” he said.
A modernized trade agreement between Mexico and the European Union would further enhance Europe’s ability to capitalize on the benefits of USMCA, opening access to the broader North American market, Driessen explained. Many European companies operating in Mexico are not solely focused on the domestic market, but rather utilize the country as a base for exporting throughout the region. “The updated USMCA opens the North American market for us as well. Many of our investors here in Mexico are here, not only for Mexico, which is a great market, but for the entire North American market,” he stated.
The ambassador expressed hope that USMCA will remain in effect despite ongoing trade tensions between the three member nations and potential threats of bilateral agreements. He argued that the three countries have significantly benefited from the unified market created by the agreement, and dismantling it would incur substantial economic costs. Driessen drew a parallel to the United Kingdom’s departure from the European Union, citing Brexit as an example of economic deterioration resulting from the disruption of established trade relationships.
While optimistic about trade prospects, Driessen also cautioned that insecurity and violence in certain regions of Mexico pose concerns for European investors. He acknowledged that some areas are considered unsuitable for investment due to safety concerns, contrasting them with states like Querétaro, which he described as “very safe” for operations.
Driessen highlighted the Netherlands’ role as a potential entry point to the European market, citing its robust logistical infrastructure. He also identified areas for increased cooperation and investment, including agriculture, horticulture, sustainable technologies, water management, energy efficiency, and integration within automotive supply chains.
