The financial downturns triggered by the Chinese coronavirus are far from being a crisis, experts from the University (UAM) cautioned that this scenario conceals an advantage that Mexico might make the most of.
“We are not in a planetary crisis, however in the face of the financial recession in some parts of the world, this might have an advantage for others,” scientist Eduardo Tzili Apango, a member of the Eurasia Study Group (GESE), described to press reporters.
“The question is whether or not there is a federal government procedure that will benefit from this kind of pandemic and channel it,” he included.
Does Mexico have the capability to make the most of this crisis?
The head of the Ministry of Finance and Public Credit, Arturo Herrera Gomez, specified in a conference this Tuesday, March 10th, at the National Palace, the head office of the Mexican Federal Government, that “it is attempting to adjust the economy,” too tough global settings.
These statements followed the nicknamed “Black Monday” in which the Mexican peso diminished/dropped 5.2% versus the dollar, and a barrel of crude oil dropped in Mexican by 31%.
“Problems are happening that correspond and feed each other, fall in oil and the coronavirus as the most prominent, we can not mention a crisis in the economy until these results are extended, “said Tzili Apango.
For the scientist, there is no clear strategy in Mexico to make the most of this context: “There are chances that the scenario can be used, however, what there are not are strategies or procedures for public and business policy to benefit from it. Remembering the history of Mexico, it resembles the 1973 oil crisis, which was not well utilized by Mexico, “described the scientist.
In his analysis, “Mexican diplomacy is extremely affected by the United States and the existing federal government is not thinking about the topic, so I verify that there is no clear policy to make the most of the circumstance,” he said again.
Isadora Gonzaya, teacher of International Relations at the Acatlan Faculty of Higher Studies, of the UAM and likewise a member of the GESE, the reverse is the viewpoint.
“Mexico can operate stability due to the fact that it has industrial interaction in both areas. Now, it appears that there is a chain of basic materials missing from China due to the coronavirus, which Mexico might reconfigure, and change that lack with what exists in the nation, “he stated.
Nevertheless, while 85% of Mexican foreign trade is with the United States, only 6% is with China, its second-largest trading partner.
Coronavirus attacks markets: what is China’s function in the international economy?
“Much of the Mexican trade deficit is with China, which is stabilized by the surplus by trade with the United States,” Arango pointed out.
“There is an untapped market in the information processing technology, however, Mexico is checking out other kinds of methods, such as joint endeavors/partnerships, to development of state-of-the-art or value-added markets.”
“There is more interest from China in Mexico than vice versa. Because in 2007, China has actually looked to sign an open market arrangement with Mexico, without success. Mexico is overconcentrated in the North American market and although just recently there have been numerous offers, we Mexicans have not wanted to deepen the industrial relationship with China, “he stated.
