Sectors such as energy, water, infrastructure and specialized human capital could find fertile ground in the South American country to grow and expand towards the United States.

Mexico, which is an important trading partner for the United States due to its proximity, has recently faced several challenges. This could represent an opportunity for Colombia to increase its exports to the US.

"If we manage to learn from Mexico's mistakes and build a more attractive and stable investment environment, we could take advantage of the productive limitations and political challenges faced by our northern neighbor," acknowledges the president of the Colombian-American Chamber of Commerce (AmCham Colombia), María Claudia Lacouture.

Sectors such as energy, water, infrastructure, specialized human capital and those where limitations are beginning to be seen in the production process, where Mexico faces increasing barriers, “could find in Colombia fertile ground to grow and expand towards the United States, consolidating our position as an ideal destination.”

What are the challenges facing Mexico?

To begin with, Mexico has suffered a notable deterioration in its investment climate. According to the Bank of Mexico's monthly survey of economic specialists, only 5% of respondents consider that it is a good time to invest in the country, while 66% consider it a bad time.

Moreover, the June elections and proposed constitutional reforms, coupled with concerns about the independence of the judiciary and the elimination of autonomous bodies, have created uncertainty in the private sector, rapidly eroding confidence.

One of the main challenges facing Mexico is its energy capacity , as the country is currently operating at its limit in terms of electricity generation and distribution, which has caused blackouts, according to the executive vice president and CEO of AmCham Mexico, Pedro Casas. This challenge becomes a significant opportunity for Colombian companies in the energy and technology sectors to enter as providers of innovative solutions.

Furthermore, “ water stress in the productive regions of northern Mexico, which severely affects industries such as data centers and advanced manufacturing, represents another critical challenge,” Casas adds. Mexico’s water deficit opens an opportunity for Colombia in technology transfer and collaboration on sustainable water management projects, particularly in industrial sectors.

The sectors with the most potential in Colombia

Lacouture also highlighted the commercial opportunities that Colombia can capitalize on through productive links with Mexico to access the US market.

There are more than 20 sectors where there is clear potential to increase exports to the United States if the country can efficiently integrate into Mexican supply chains. These sectors include:

• Organic and inorganic chemicals.
• Fertilizers.
• Products of the chemical industry.
• Flowers.
• Leathers.
• Charcoal.
• Wood.
• Paper and cardboard products.

In addition, Colombia has a significant competitive advantage in the agricultural sector, since Mexico, although a major producer, faces limitations in meeting the growing demand for products such as flowers and fruits in the US market.

“A report by Mexico’s Ministry of Agriculture and Rural Development highlighted that, due to pressure on water resources, the country will not be able to significantly expand its agricultural production without a considerable increase in investment. This opens an opportunity for Colombia, which could increase its exports in these sectors and fill the gap in U.S. demand,” Lacouture said.

In addition to the aforementioned sectors, the CEO of AmCham Mexico stressed that the implementation in the United States of industrial initiatives such as the “CHIPS & Science Act” and the “Inflation Reduction Act” creates a favorable environment for Colombia to expand its participation in high-tech industries such as the production of semiconductors, electronic components and electric vehicles.

The current situation presents a unique opportunity for Colombia to not only increase its exports, but also attract key investments from entrepreneurs seeking a strategic location to access the United States market, complementing Mexico's productive capabilities. To achieve this, it is vital that the country continues working on improving its infrastructure, training specialized talent and diversifying its export offering, according to the president of AmCham Colombia.