• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » NAFTA at 20: A Look at U.S.-Mexico Trade

NAFTA at 20: A Look at U.S.-Mexico Trade

August 18, 2014
SupplyChainBrain

Twenty years ago, Mexico was not a “business-friendly” environment, says Ryley. “There were a lot of closed barriers.” In the two decades since implementation of the North American Free Trade Agreement, he has seen a dramatic change in attitude. Today, Mexico plays a vital role in U.S. trade, serving as both a source of production and a growing market for American merchandisers.

In addition, Mexico appears to be regaining favor as a location for low-cost manufacturing, as companies that had outsourced operations to China and other parts of Asia look for locations closer to U.S. markets.

Mexican transportation infrastructure “has come a long way in a very short period of time,” Ryley says. A number of road networks have been privatized, with expansion outside Mexico City in line with changing population demographics. The flow of goods within the country is far more dispersed than in the pre-NAFTA days.

Double-stack container trains are once again becoming a popular option for moving items such as consumer goods and automotive parts between the U.S. and Mexico. There remain some limitations, however, in the form of low bridges and tunnels, but the rail infrastructure has greatly improved, says Ryley.

Security is always a concern, but Ryley believes that many people are confusing drug cartel activity with freight theft. The latter focuses on merchandise, and affects but a small fraction of the total freight moving in Mexico, he says.

The larger issue of concern to shippers today is a lack of adequate liability coverage for lost or damaged goods. It’s much more limited than in the U.S., and is not available directly from carriers. Shippers need to obtain global insurance policies to shore up the gaps in coverage.

Despite the existence of NAFTA, there remain a number of trade barriers to be overcome. Some of those obstacles can be surmounted through participation in the Customs-Trade Partnership Against Terrorism (C-TPAT) and the use of “fast lanes” for trusted shippers crossing the border.

“If you’re a secure company that does things right, and are willing to show that you have custody of freight from point to point, you get access to programs that help,” says Ryley.

To view the video in its entirety, click here

RELATED CONTENT

RELATED VIDEOS

Logistics Facility Location Planning Global Logistics Logistics Outsourcing LTL/Truckload Services Rail & Intermodal Transportation & Distribution Global Trade Management Inventory Planning/ Optimization Global Supply Chain Management Regulation & Compliance Supply Chain Security & Risk Mgmt
KEYWORDS Facility Location & Network Design Global Logistics Global Supply Chain Management Global Trade Management international trade Inventory Planning/ Optimization Latin America Logistics logistics management Logistics Outsourcing LTL/Truckload Services managing director of Mexico Mexico supply chain Mexico trade Rail & Intermodal Regulation & Compliance SC Security & Risk Mgmt supply chain Supply Chain Analysis & Consulting Supply Chain Management supply chain management: latin America Supply Chain Planning Supply Chain Risk Management Transplace Transportation & Distribution Troy Ryley
  • Related Articles

    NAFTA at 20: A Look at U.S.-Mexico Trade

    As Trucking Capacity Slims, Shippers Looking at Rail More in U.S.-Mexico Trade Lanes

    Kansas Rail Company Breaks Up a Bottleneck at the U.S.-Mexico Border

SupplyChainBrain

Berkshire Grey and Locus Robotics Join Forces to Offer Cross-Platform Robotic Automation

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A MAN IN A SUIT SHAKES HANDS WITH A WOMAN IN A HARD HAT, NEXT TO A STACK OF CONTAINERS

    Three Procurement Technology Evolutions for 2023

    Sourcing/Procurement/SRM
  • DOCUMENTS BEARING THE INSIGNIA OF US CUSTOMS AND BORDER PROTECTION LIE ON A TABLE

    New CBP Regs Call for Greater Diligence by Brokers in Reporting Security Breaches

    Freight Forwarding/Customs Brokerage
  • The blank stare of a child's eye who is standing behind what appears to be a wooden frame

    The Alarming Continued Rise of Modern Slavery in Supply Chains: How Procurement Can Help Reverse the Trend

    Sourcing/Procurement/SRM
  • A WORKER IN A WAREHOUSE, SUPERIMPOSED WITH GRAPHICS SHOWING SUPPLY NETWORK

    Enabling Intelligent Visibility With Supply Chain Analytics

    Data Management (Big Data/IoT/Blockchain)
  • A GROUP OF WORKERS RANGED IN AN OFFICE, OF DIVERSE RACE, GENDER, AGE AND PHYSICAL ABILITY

    Podcast | The Supply Chain Workforce of the Future Is Already Here

    HR & Labor Management

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing