Mexico: towards sovereignty through BRICS
The list of countries wishing to join BRICS is growing day by day, and Mexico is no exception. Today it is one of the most economically developed countries in Latin America. According to President Lopez Obrador's estimates, in 2023 and 2024 the country's economy will grow at 4% per year rate. Being a constructive participant of various international organisations and agreements, Mexico has built active communications with its neighbours in social and economic spheres. However, considering increasing disagreements with the US on foreign trade issues and sovereignty volet of the Mexican government, joining BRICS might be an alternative vector of economic development. By acceding to BRICS, Mexico will have an opportunity to diversify its trade away from excessive dependence on the US and gain access to domestic institutions, while the alliance, in turn, will expand the boundaries of its geopolitical and economic influence.
Growing contradictions between Mexico and US
Today, the USA and Mexico have close economic ties and a number of comprehensive treaties in the foreign trade sector. The key agreement regulating cross-border trade is the North American Free Trade Agreement (NAFTA) signed in 1992 by US, Mexico and Canada. For Mexico, NAFTA membership guaranteed entry into American market and increased foreign investment, while member countries were able to use their resources and those of their partners efficiently in local markets. Over time, the agreements were revised and turned into in a new agreement, the USMCA, which came into force in July 2020. Even after its ratification disputes among contracting countries remained which clearly show the existence of vast disagreements. In particular, the Mexican side claimed that the agreement with new conditions did not correspond to its own national interests.
There are about 20 cross-border companies operating in Mexico. As a result of the USA investment policy, a significant number of export-oriented Mexican enterprises, especially in financial sector, are owned by US industrial corporations. The so-called "maquiladoras" have preferential treatment regime granting duty-free imports of raw materials and exports of finished products.
The issue of illegal migration complicates bilateral relations. According to the social media sources, more than 50 % of illegal immigrants living in the USA came from Mexico. The USA has tried various methods to solve this problem: from liberalisation of migration policy to building a wall on the border and imposing a state of emergency. Existing problems in settling border and customs issues also give rise to the activities of Mexican drug cartels, the revenues from which reach billions of US dollars. Since 2007, the neighbours have been implementing the Mérida Initiative programme directed against trafficking and related organised crime.
Despite close co-operation, contradictions are growing in relations between the USA and Mexico. Mexico has repeatedly expressed their concerns about US policy in Latin America and accused its neighbour of imperialism and disrespect of the Latin American states’ sovereignty. The Mexican President was the first world leader to accuse Washington of espionage and promised to tighten control over classified information.
We're now going to safeguard information from the Navy and the Defense Ministry, because we're being a target of spying by the Pentagon
The Mexican authorities recently nationalised a port owned by a US company, and there are also plans to ban imports of genetically modified wheat from the US. Mexico's policy has become more oriented towards co-operation with China and Russia, and judging by the president's ratings, it goes without saying that local population fully support his activities.
Mexico in BRICS
More than 20 countries around the world are interested in joining BRICS. Procedures for expanding the union will be discussed at BRICS leaders’ summit held in August. Standing for a multipolar world, the BRICS group is open to interaction and ready for dialogue with new partners, thus being a centre of attraction for many countries.
Mexico first participated in the BRICS+ summit in September 2007. Following the meeting, the President of Mexico said that his country aspired to maintain a close dialogue with the member countries and noted that the BRICS countries have a strong influence and play an important role in the world. Now Mexico has established diplomatic relations on international trade and investment with all member countries of the alliance.
Many bilateral agreements have been signed between India and Mexico. The countries are deeply engaged in mutual investment in the economy with a number cross-border companies operating their joint projects. Mexico also promotes active cooperation with China and the fruits are obvious, China and Mexica being mutually major importers and exporters. Chinese enterprises keep winning state tenders to develop offshore oil and gas projects in Mexico. In 2016 China and Mexico agreed to develop diplomatic relations.
Mexico is the third largest trading partner of South Africa from Latin America, and South Africa, in turn, is Mexico's largest partner from Africa. Russia and Mexico interact not only on international trade but also expand scientific cooperation. Brazil is the largest foreign direct investor from Latin America, and Mexico also invests directly in Brazil.
Today, the BRICS group, by financing the New Development Bank established in 2014 and discussing the possibility of creating a single BRICS currency, is implementing targeted cooperation programmes among the members. In order to coordinate and organise the Union activities, the member countries hold regular summits and promote joint strategies for economic partnership. As a result of these meetings, a significant number of agreements have already been signed, projects and solutions have been identified in the area of financial and economic cooperation, transport infrastructure and logistics chains, environmental protection, social and digital infrastructure. In the future, such consolidation of the Union's members and the implementation of the outlined plans will not only strengthen the economies of the member states at all levels, but also expand the Union's zone of influence in the international arena.
