Although the automotive sector has not been prominently featured in President Claudia Sheinbaum Pardo’s proposals, the Mexican Association of the Automotive Industry (AMIA) is urging the head of the Federal Executive Branch to prioritize the industry in light of the upcoming review of the Mexico-United States-Canada Agreement (USMCA or T-MEC). The AMIA recognizes the automotive sector’s pivotal role in Mexico’s economy. It emphasizes the need for targeted government policies to sustain and expand the industry’s growth, particularly in electric vehicles and electromobility.

Odracir Barquera, the director of the Mexican Association of the Automotive Industry, outlined ten comprehensive proposals to shape a robust and forward-looking automotive policy. These recommendations were unveiled after the first-ever Drive Forward Summit in Mexico, an event attended by representatives from major industry players such as Nissan, General Motors, Toyota, and BMW. These proposals address a wide range of critical issues, from sustainability and infrastructure to workforce development and regulatory frameworks, all with the objective of positioning Mexico as a global leader in the automotive industry.

Ten Proposals made by AMIA

1. A Comprehensive Policy for Electromobility

The Mexican Association of the Automotive Industry advocates for creating a public policy dedicated to electromobility to boost manufacturing and supply chains that support electric vehicles (EVs). This policy would focus on achieving carbon neutrality while developing the necessary infrastructure to encourage the adoption of green technologies. Mexico could establish itself as a regional hub for sustainable automotive solutions by fostering innovation in EV production.

2. Enhancing Conditions for Existing Operations

The government must create conditions conducive to business growth to attract higher levels of investment and expand current operations. This includes streamlining administrative processes, providing fiscal incentives, and ensuring regulatory stability to encourage reinvestment by companies already operating in Mexico.

3. Improving Mexico’s Energy Matrix

A key priority is enhancing the reliability and sustainability of Mexico’s energy supply. Transitioning to clean energy sources would support the environmental goals of automotive companies and align Mexico with global trends toward green energy. This includes investments in renewable energy projects and reforms to ensure energy availability meets industrial demand.

4. Upgrading Physical and Digital Infrastructure

Modernizing infrastructure is critical to improving the efficiency of customs operations. The AMIA proposes expanding the capacity of ports, border crossings, and airports to facilitate smoother trade and logistics. Additionally, digital transformation in customs processes could reduce delays and enhance operational transparency.

5. Leveraging International Trade Agreements

Mexico’s strategic location and participation in agreements such as the USMCA provide unique opportunities to strengthen its position in the global automotive market. The Mexica Association of the Automotive Industry suggests using these agreements to deepen integration within North America while pursuing new trade partnerships with the European Union, the United Kingdom, Brazil, and Argentina to diversify export markets and reduce dependency on any single region.

6. Aligning Labor Supply with Industry Needs

Integrating the workforce with the evolving requirements of the automotive industry is essential. The AMIA calls for the development of academic programs and training initiatives tailored to the sector’s technological advancements and operational demands. This would ensure a steady pipeline of skilled workers ready to meet the challenges of an increasingly automated and electrified industry.

7. Modernizing the Vehicle Registration System

A modern, functional, reliable vehicle registration system ensures transparency and regulatory compliance. The Mexican Association of the Automotive Industry proposes the creation of a new General Law for Vehicle Registration, which would facilitate better tracking of vehicles and support law enforcement efforts.

8. Ensuring Market Transparency

The AMIA recommends implementing a transparency framework to foster fair competition within the domestic automotive market. This framework would establish clear rules for market participants, ensuring that consumers and businesses benefit from competitive practices.

9. Updating Regulatory Frameworks

Technological advancements in the automotive sector necessitate a regulatory framework that keeps up with innovation. The AMIA advocates for updated norms and standards that reflect global best practices, enabling Mexico to stay competitive in the international market.

10. Guaranteeing Operational Security

Security remains a pressing concern for automotive companies operating in Mexico. The Mexican Association of the Automotive Industry stresses the importance of measures to ensure the safety of operations across various sectors, including transportation, supply chains, and distribution networks. Strengthening law enforcement and implementing preventative measures would mitigate risks and create a more stable environment for investment.

The Road Ahead for the Automotive Industry

“We believe this is the moment to ensure that this momentum is harnessed from a comprehensive vision of what this transition means for Mexico,” stated Odracir Barquera. He underscored the importance of the next six years under the new administration in determining Mexico’s trajectory toward a shared future of sustainable growth and innovation in the automotive sector.

The proposals outlined by the AMIA reflect the industry’s aspirations to not only adapt to global trends but also to lead them. By prioritizing electromobility and sustainability, addressing infrastructure gaps, and aligning educational and regulatory frameworks with industry needs, Mexico has the potential to cement its status as a global automotive powerhouse. With strategic governmental support, these initiatives could pave the way for significant economic growth, job creation, and technological advancement.

Strategic Implications for Mexico’s Economy

The automotive industry is a cornerstone of Mexico’s economy, contributing significantly to GDP, exports, and employment. As global demand shifts toward electric and sustainable vehicles, countries that position themselves at the forefront of this transformation stand to reap substantial benefits. Mexico’s proximity to key markets, established manufacturing base, and skilled workforce provide a strong foundation for achieving these goals. However, the successful implementation of the AMIA’s proposals will require a collaborative effort between the government, industry stakeholders, and academia.

In conclusion, the AMIA’s proposals to President Claudia Sheinbaum represent a roadmap for the future of Mexico’s automotive industry. By addressing critical issues such as electromobility, infrastructure, energy, and workforce development, these initiatives have the potential to drive the industry’s growth while positioning Mexico as a leader in the global shift toward sustainable transportation. The next administration’s response to these recommendations will be pivotal in shaping the future of the country’s automotive sector and its role in the international market.

The Maquila Regime in Paraguay has emerged as a transformative program, fostering industrialization while significantly contributing to female employment. Currently, 44% of the jobs generated under this initiative are held by women, underscoring its critical role in promoting women’s economic empowerment. This remarkable achievement highlights the regime’s ability to drive job creation and expand opportunities for women, particularly in industries where they have traditionally been underrepresented.

A Catalyst for Industrial Growth and Inclusion

In recent years, the Maquila Regime in Paraguay has become a pivotal tool in the country’s industrialization efforts. Its success is measured not just in terms of economic output but also by its social impact. Natalia Cáceres, Executive Secretary of the National Council of the Maquila Export Industry (CNIME), has emphasized the program’s ability to diversify sectors and broaden employment opportunities for women. Initially concentrated on manufacturing, the Maquila Regime has expanded into services, creating technology, customer service, and logistics jobs.

One notable achievement of the program is the growing participation of women in traditionally male-dominated industries, such as auto parts and metalworking. Over the past four years, female labor participation in these sectors has risen significantly, with the auto parts industry experiencing a 17% increase and the metalworking industry seeing an astonishing 130% growth. This surge is attributed to the high demand for precision in manufacturing processes, where women’s fine motor skills contribute to the superior quality of products. “These sectors have experienced remarkable growth due to the high demand for precision in processes—a skill women excel in,” Cáceres stated.

Record-Breaking Export Growth

The Maquila Regime in Paraguay has also proven to be a powerful driver of the South American nation’s export economy. As of October 2024, maquiladora companies reported exports totaling USD 918 million. This marks a significant milestone, as exports under the program are expected to surpass the 2023 figures by USD 76 million, achieving historic levels. Such growth demonstrates the economic viability of the Maquila Regime and highlights its role in meaningfully integrating women into the workforce.

The export-driven nature of the program ensures that participants are exposed to global standards and practices, which can enhance their professional skill sets. Women employed under the regime often acquire expertise in international trade, logistics, and quality assurance, enabling them to pursue diverse career paths.

Investment in Skills Development

A key factor contributing to the success of the Maquila Regime in Paraguay is its emphasis on training and development. Companies under this program recognize the value of investing in their workforce, particularly in equipping women with skills to enhance their employability. This is particularly evident in the intangible services sector, where companies offer language training in English and Portuguese. Such programs enable women to acquire highly sought-after skills in the global marketplace, opening doors to better career opportunities.

Between 2020 and 2024, female employment in the services sector increased by 72%, reflecting the effectiveness of these initiatives. Language training, in particular, has been transformative, allowing women to access roles in customer service, international business, and remote work opportunities. These skills benefit the individuals involved and contribute to the overall competitiveness of Paraguay’s labor force on the global stage.

Empowering Women in Unique Ways

One of the most inspiring aspects of the Maquila Regime in Paraguay is its commitment to inclusive employment opportunities. Mega Plásticos, a standout participant in the program, has made headlines for its efforts to employ incarcerated women. This initiative allows these women to learn a trade, earn an income, and support their families while serving their sentences. Moreover, the program facilitates social reintegration by equipping them with skills that enhance their prospects for employment upon release. “The Maquila program has fostered inclusive employment opportunities, enabling many women to support their families and learn a trade, facilitating their social reintegration,” said the CNIME representative.

Bridging the Gender Gap in the Workforce

While the Maquila Regime’s impact on female employment is noteworthy, it also addresses broader issues of gender inequality in the workforce. The program challenges stereotypes and sets new norms for female participation in Paraguay’s labor market by creating opportunities in industries where women have been traditionally underrepresented. The growth in female employment in the auto parts and metalworking sectors is a testament to the changing landscape, where women are increasingly recognized for their skills and contributions.

The program’s focus on skill development further helps to bridge the gender gap. Women who participate in Maquila training programs often emerge with a competitive edge, making them valuable assets to employers. This, in turn, inspires other women to enter the workforce, creating a ripple effect that benefits the entire economy.

Economic Empowerment Through Export-Oriented Industries

The export-oriented nature of the Maquila Regime in Paraguay amplifies its impact on women’s economic empowerment. By engaging in industries that are deeply integrated with global supply chains, women gain exposure to international business practices and standards. This experience boosts their confidence and enhances their employability in high-demand fields. The ability to contribute to Paraguay’s export success further reinforces its value in the workforce and underscores the importance of creating equitable employment opportunities.

Looking Ahead

As the Maquila Regime expands, its potential to drive inclusive growth remains immense. By focusing on industries with high growth potential and emphasizing skill development, the program ensures that women are included in Paraguay’s industrialization journey. The projected export increase and the ongoing diversification of sectors are positive signs of sustained growth.

Moreover, the program’s emphasis on social inclusion sets it apart as a model for other countries to emulate. Initiatives like those by Mega Plásticos demonstrate that economic development and social progress can go hand in hand. The Maquila Regime proves that inclusive policies can lead to transformative outcomes by empowering women, particularly those from marginalized communities.

Conclusion

The Maquila Regime in Paraguay is more than just an economic program; it is a vehicle for social change. Promoting female employment, investing in skills development, and fostering inclusive practices have set a benchmark for other nations to follow. As the program continues to grow and evolve, it promises to create a more equitable and prosperous future for Paraguay, where women play a central role in shaping the nation’s industrial and economic landscape.

Panama is facing an economic crossroads that requires immediate and structural decisions. Carlos Berguido, president of the Panama Banking Association, recently addressed key issues such as the Social Security Fund (CSS) crisis, rising public debt, and the country’s risk rating outlook. Despite the challenges, there are positive signs with the potential arrival of new banks in Panama, which could strengthen the country’s international image.

The Challenge of Sustainability in the CSS

The Social Security Fund is facing a complicated situation, particularly in the Disability, Old Age, and Death (IVM) program. This system, vital for Panamanians’ social security, is undergoing a structural crisis that, if not addressed, could worsen in the coming years.

Carlos Berguido explained that, in previous decades, five workers contributed to finance the pension of one retiree. However, this ratio has drastically reduced to one contributor for each retiree. This is further compounded by an increased life expectancy, meaning beneficiaries receive pensions for extended periods.

“It is unsustainable to contribute for 25 years and receive benefits for 40,” Berguido stated, highlighting that the imbalance threatens the system’s stability. He says a viable solution is only possible with parametric reforms, including raising the retirement age and increasing contribution rates.

Additionally, the expert emphasized that credit rating agencies closely monitor government decisions regarding the CSS. The sustainability of this system is not only a local concern but also has international repercussions, as it can affect the perception of the country’s economic stability.

Public Debt and Finances Under Scrutiny

Another significant issue is Panama’s public debt, which has surpassed 60% of Gross Domestic Product (GDP). Although the country still maintains its investment-grade rating, fiscal stability is at risk. “The deficit and the level of debt are aspects that the rating agencies are closely monitoring,” warned Berguido.

One of the three major rating agencies recently downgraded Panama’s credit rating, while the other two issued negative outlooks for the country’s future. According to Berguido, this situation is partly due to the approval of national budgets, including high levels of spending financed by debt without clear signs of fiscal discipline.

The impact of a potential loss of the investment-grade rating would be significant. Panama would face higher borrowing costs, making it harder to access international markets and raising local interest rates. This, in turn, could affect foreign investment and the country’s reputation as a reliable business destination.

New Banks Will Arrive in Panama: A Positive Outlook for the Financial Sector

Amid these challenges, a positive development is emerging for the financial sector: the potential arrival of three new banks in Panama. Although Berguido did not reveal specific details, he highlighted the importance of improving the country’s international image to attract investment and strengthen its financial system.

“I don’t know if their arrival is related to Panama’s removal from gray lists, but improving our international image is key,” he noted. Panama’s inclusion on lists of countries lacking in combating money laundering and terrorism financing has been a barrier in recent years. However, progress in this area has generated optimism, and the arrival of new banks in Panama is a sign of renewed confidence in the market.

The diversification of the financial sector could also bring additional benefits, such as increased competition, more accessible services for consumers, and a stronger foundation for the country’s economy. The new banks will arrive in Panama, contributing to these advancements and offering fresh perspectives.

Interconnection Between Economic Issues

Berguido stressed that the problems with the CSS and public finances should not be considered in isolation. The pension system’s unsustainability and the high level of public debt are closely intertwined, and resolving them requires a comprehensive approach.

For example, an unsustainable CSS could increase the government’s fiscal burden, limiting its ability to meet financial commitments. Likewise, a weak fiscal environment could hinder the implementation of necessary reforms in the CSS, creating a vicious cycle of economic instability.

Opportunities and the Path Forward

Despite the challenges, Berguido expressed confidence that Panama can overcome these obstacles by making timely and structural decisions. “We can’t keep postponing fundamental decisions regarding the CSS and public finances,” he stated.

In the CSS’s case, parametric reforms are an unavoidable necessity. In addition to raising the retirement age, expanding the contributor base through policies that encourage formal employment could be considered.

Regarding public finances, Berguido emphasized the importance of sending clear signals to international markets. This includes implementing responsible fiscal policies and gradually reducing the deficit.

New Banks Will Arrive in Panama: A Path to Economic Stability

Although the challenges are significant, the potential arrival of new banks and progress in exiting gray lists offer hope for Panama’s economic future. The new banks will arrive in Panama at a crucial time, helping to stabilize the financial sector. Berguido concluded by emphasizing that the sustainability of the CSS and fiscal stability are essential for the country’s economic development and maintaining international market confidence.

With the right decisions, Panama has the potential to strengthen its position as a key financial hub in the region and ensure sustainable long-term growth. As new banks will arrive in Panama, the country’s prospects appear increasingly promising.

The facility will be the first spaceport in Latin America located within an airport. With the support of the United States, this ambitious project promises to create thousands of jobs and attract technological investments to the region.

The world is watching as Mexico becomes the first in Latin America to have an operational spaceport within a commercial airport. This site has been chosen as the ideal location for this ambitious initiative, which aims to position the country at the forefront of the global aerospace industry.

With technical support from NASA and financial backing from the United States, this project promises to be a turning point for the region. It represents an unprecedented technological breakthrough and has a significant economic impact on the country and its surrounding areas. Additionally, this development positions the nation as a strategic hub for aerospace operations in the region and the first spaceport in Latin America to incorporate advanced NASA-supported technology.

Mexico is set to lead with the first spaceport in an airport

The Querétaro International Airport, located in a region renowned for its industrial growth and geological stability, has been chosen as the site for the first spaceport in Latin America. This location offers exceptional features for space operations, including a runway over four kilometers long, consistent weather conditions, and a strategic position in the country’s center.

The backing of the United States Federal Aviation Administration (FAA), which has already issued an initial approval, marks a crucial step in certifying the project. This certification is expected to be finalized in the coming months, allowing construction and necessary adjustments to proceed. Furthermore, collaboration with NASA ensures that Mexico will have the technical expertise required to build a world-class aerospace port, reinforcing the significance of the first spaceport in Latin America.

How will the United States fund Latin America’s first aerospace port?

U.S. funding and support are critical to bringing this project to fruition. The collaboration includes technical and financial assistance, with NASA playing a key role in the design and operational procedures. This partnership guarantees adherence to international quality standards and positions Mexico as a vital ally in the global aerospace industry.

The FAA also provides guidance to meet regulatory requirements, while U.S. companies participating in the spaceport’s construction and operation will facilitate a technology transfer that benefits the entire region. This support underscores the U.S.’s interest in strengthening the aerospace sector in Latin America and fostering international collaboration. These efforts will solidify the region’s leadership with the first spaceport in Latin America.

How will the spaceport impact Mexico’s economy and the region?

The construction of the first spaceport in Latin America at Querétaro International Airport will directly impact the economies of Mexico and Latin America. The project is expected to generate thousands of direct and indirect jobs from the construction phase to daily operations. It will also attract technology and research companies eager to leverage the advantages of a regional aerospace hub.

Querétaro, already recognized for its thriving manufacturing industry, will become a strategic center for developing aerospace technologies. The first spaceport in Latin America will drive foreign investment and solidify Mexico’s position as a regional leader in technological innovation. Moreover, collaboration with NASA and the United States opens new scientific and educational cooperation opportunities, fostering specialized talent development.

This advancement positions Latin America as an emerging player in the aerospace industry at a regional level. Countries such as Peru and Brazil could benefit from the experience and knowledge Mexico will gain throughout this process, promoting greater integration and development in the sector.

Summary

Mexico is poised to lead Latin America by developing the region’s first spaceport in Latin America, located within Querétaro International Airport. This groundbreaking initiative, supported by the United States, promises to transform the region into a hub for the global aerospace industry. The project, funded through U.S. financial assistance and bolstered by NASA’s technical expertise, highlights international collaboration. The Federal Aviation Administration (FAA) has already granted initial approval, paving the way for construction to commence. Querétaro International Airport was strategically chosen due to its industrial growth, geological stability, central location, and infrastructure, including a runway over four kilometers long and favorable weather conditions.

The first spaceport in Latin America will generate significant economic benefits for Mexico and the broader Latin American region. Thousands of jobs will be created, both directly and indirectly, during construction and through ongoing operations. This development is set to attract advanced technology and research companies, further cementing Querétaro’s reputation as a manufacturing and innovation hub. Additionally, the collaboration with NASA and U.S. aerospace companies will foster technology transfer, adherence to international standards, and the growth of specialized talent.

This project underscores Mexico’s emergence as a strategic leader in aerospace, positioning the country as a vital ally in the global industry. The aerospace port will enhance Mexico’s economy and promote regional integration by sharing expertise with neighboring nations like Brazil and Peru. The initiative represents a monumental step forward for Latin America in aerospace, solidifying the region’s presence on the global stage while strengthening U.S.-Latin American partnerships in science, technology, and innovation.

Uruguay’s economy demonstrated remarkable growth in the third quarter of 2024, with a 4.1% increase in gross domestic product (GDP) compared to the same period in 2023. This performance, reported by the Central Bank of Uruguay (BCU), highlights a widespread recovery in economic activity, with key sectors such as manufacturing and commerce driving the momentum. The report indicates that Uruguayan economic growth is robust and resilient, positioning the country as a standout performer in the region.

The BCU’s National Accounts report emphasizes that the growth was fueled by a combination of factors, including increased oil refining and pulp production and a recovery in the commerce, hospitality, and food and beverage sectors. These industries have been instrumental in boosting the country’s economic output, demonstrating Uruguay’s ability to adapt to shifting global and local economic dynamics.

Broad-Based Economic Recovery

According to the BCU, economic growth in the third quarter was attributed to a “generalized increase in activity levels.” This indicates that multiple sectors of the economy experienced simultaneous improvements, reflecting a sustained recovery after recent economic challenges. The breadth of this recovery underscores the resilience and adaptability of Uruguayan economic growth, providing a solid foundation for future progress.

In particular, the manufacturing sector stood out for its positive performance, driven by two main factors:

• Oil Refining: Refined oil production saw significant growth compared to the same quarter in 2023 when ANCAP’s refinery was closed for maintenance. This rebound has notably impacted the country’s industrial output, underscoring the importance of operational continuity in key industries.
• Pulp Production: The commissioning of a third pulp mill in Uruguay has been a key driver of growth in this sector, solidifying its position as a pillar of the national economy. This expansion boosts exports and supports jobs and regional development, making it a cornerstone of Uruguayan economic growth.

Dynamism in Commerce and Services

The commerce, hospitality, and food and beverage supply sectors also played vital roles in economic growth during the quarter. This dynamism reflects a recovery in tourism activity and increased domestic consumption—factors supported by greater economic stability and renewed internal demand. The resurgence of these sectors highlights the critical role of tourism and consumer spending in driving Uruguayan economic growth.

The BCU report notes that improvements in these areas are crucial, as they directly impact employment and income generation for small and medium-sized enterprises (SMEs), which form an essential part of Uruguay’s economic fabric. The continued recovery of these sectors will likely provide sustained benefits for the broader economy, reinforcing the importance of fostering a supportive environment for SMEs.

In seasonally adjusted terms, Uruguay’s economy grew 0.6% between July and September 2024 compared to the previous quarter. This figure reflects a sustained positive trend, albeit more moderate, suggesting that the country is successfully consolidating its economic recovery. Such incremental growth indicates steady progress and a commitment to long-term stability, further strengthening confidence in Uruguayan economic growth.

Structural Factors Behind the Growth

Uruguay’s economic performance in 2024 is not an isolated event but the result of a combination of structural factors that have strengthened its economy in recent years. These include:

• Investments in Productive Infrastructure: The opening of the third pulp mill exemplifies how strategic investments can significantly impact economic growth and boost the country’s exports. This facility has positioned Uruguay as a leading global player in pulp production, highlighting the value of forward-looking infrastructure projects.
• Economic Diversification: Uruguay has successfully diversified its economy, reducing reliance on traditional sectors and focusing on industries like technology, services, and high-value-added goods. This diversification has enhanced the resilience of Uruguayan economic growth, enabling the country to weather external shocks and capitalize on emerging opportunities.
• Macroeconomic Stability: The country’s political and economic stability has been key in attracting foreign investments and fostering confidence in international markets. Uruguay’s consistent policy environment provides a secure foundation for sustained economic development and positions it as a reliable partner in global trade.

Challenges to Sustained Growth

Despite the recorded growth, Uruguay faces significant challenges in maintaining this positive trend over the long term. Key issues include:

• International Competitiveness: While Uruguay’s economy has shown resilience, it is essential to continue improving the competitiveness of its products and services in global markets. This involves addressing cost structures, enhancing productivity, and leveraging technological advancements to remain competitive.
• Environmental Sustainability: Expanding sectors like pulp production pose ecological sustainability challenges, requiring a balanced approach to ensure responsible economic development. This balance will be critical for aligning economic growth with global environmental standards.
• Social Inclusion: Ensuring that the benefits of economic growth reach all segments of society is essential for strengthening social cohesion and reducing inequalities. Policies that promote equitable access to opportunities and resources will play a vital role in sustaining Uruguayan economic growth.

Opportunities for Future Growth

Uruguay has excellent potential for continued growth in the coming years. Some factors that could drive its economy include:

• Opening New Markets: Diversifying export destinations and pursuing strategic trade agreements could open new opportunities for Uruguayan products. Expanding access to international markets will enhance the country’s export potential and support economic growth.
• Technological Innovation: Adopting advanced technologies in key sectors can increase the country’s productivity and competitiveness. Uruguay can strengthen its position as a regional leader in high-value-added industries by fostering innovation.
• Tourism Promotion: With its stability and natural attractions, Uruguay has the potential to position itself as a top-tier tourist destination, generating income and employment in the process. Investments in tourism infrastructure and marketing will be essential to unlocking this potential.

The 4.1% growth recorded in the third quarter of 2024 reflects the dynamism and resilience of Uruguay’s economy. Sectors like manufacturing and commerce have been key drivers of this recovery, underscoring the positive impact of strategic investments and economic diversification. This remarkable performance exemplifies how Uruguayan economic growth can serve as a model for other nations in the region.

However, to sustain this momentum, it will be crucial to address structural challenges and capitalize on growth opportunities in emerging sectors. Uruguay has the necessary foundations to establish itself as a model of sustainable development in the region, provided it continues to prioritize innovation, inclusion, and sustainability. By doing so, the country can ensure that Uruguayan economic growth remains a hallmark of its progress for years to come.