Will the USMCA be more beneficial than NAFTA for rail traffic and commerce between the US and Mexico? (Xavier Zermeno)

Xavier Zermeno

USMCA has today an unprecedented importance due to not only the already enormous level of integration of all the participant countries' economies, but now also for the health and geopolitical issues that have arisen because of the COVID-19 crisis and rising US-China tensions. 

Both of these situations are expected to result in a change of trend, from complete supply chain globalization to a more regional, "nearshoring" scheme. Provided we can bring the economy back to pre-COVID levels and avoid a major long-term crisis, this would necessarily result in more rail traffic between our nations.

Of course, there are many bumps in the road, such as labor, environmental, and intellectual property issues. But my opinion is that with the more than 25 years of experience we have from NAFTA, these will be efficiently resolved with the mechanisms designed in the treaty.


Medium and long term, rail traffic should benefit no doubt.