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The remittances from the U.S. to Mexico increased by 10.5 percent in 2020 as compared to the previous year.
Mexico's Employers' Confederation (COPARMEX) President Jose Medina assured that the arrival of a new U.S. presidential administration opens the way to a "promising" scenario in economic ties between both countries if the right decisions are made.
He commented that actions should be targeted on the strengthening of the Mexico, the U.S., and Canada Treaty (T-MEC), and the advance in security issues, including the migration agenda.
Although Mexico is not the first trading partner of the U.S., Medina mentioned that commercial exchange between both nations reached US$614 billion in 2019 while remittances sent to Mexico increased 10.5 percent in 2020 as compared to the previous year.
On Thursday, President Andres Manuel Lopez Obrador (AMLO) celebrated U.S President Joe Biden's intention to inject US$1.9 billion into the domestic market, highlighting that remittances would reactivate the Mexican economy as 38 million Mexican citizens live in the U.S.
Before COVID-19, US GDP grew 2.2% in 2019. In contrast, Mexico's GDP was flat (top left), South Africa's GDP rose 0.2% (top right), Brazil grew 1.4% (bottom left) & Russia grew 1.3% (bottom right). So the US outgrew them all. The EM growth model was broken well before COVID-19... pic.twitter.com/2Y0RoZSTjT
However, several analysts consider that the T-MEC will be a source of friction due to differences between AMLO and Biden on environmental and energy issues.
Mexico's Autonomous University (UNAM) professor Jose Martinez pointed out that the U.S. will monitor compliance by Mexican authorities with certain conditions which were agreed upon the signing of the T-MEC, among them a labor reform and increase in wages.
The Mexican gross domestic product (GDP) contracted by 9.6 percent in the first nine months of 2020, a period in which 648,000 formal jobs were lost.