The discussion between opening to the world or protecting the local remains in force.
At a time where global commercial tensions increase and some countries are committed to closing to protect their industries, the question arises: is it realistic and viable that Mexico adopts an economic protectionism model?
Protectionism is to restrict imports through tariffs, fees or regulations to favor national production. Their defenders argue that such jobs, strategic industries and economic sovereignty are protected, while their critics warn about the increase in prices, lower competition and technological stagnation.
In economics, there are three great positions on trade:
Commercial liberalism: Based on authors such as Adam Smith and David Ricardo, he argues that opening to trade generates mutual benefits, specialization and economic growth. Mexico follows this line from the signature of NAFTA (now T-MEC).
Classic protectionism: inspired by Friedrich List, defends to protect nascent industries until they are globally competitive. For Mexico, this could involve supporting sectors such as semiconductors, batteries or the local pharmaceutical industry.
Neoproteccionism or strategic protectionism: in modern contexts, it does not seek to close borders completely, but apply selective measures to defend key geopolitical risk sectors or excessive dependence. This approach has gained strength after the Covid-19 pandemic, when the vulnerability of supply chains was evident.
In practical terms, applying strong protectionism in Mexico would be complicated. The country has international commitments, especially under the T-MEC, which limit the unilateral imposition of commercial barriers. In addition, its economy is deeply integrated into global chains, especially with the United States.
However, experts point out that Mexico could adopt selective strategies: for example, boost industrial policies, give tax incentives to strategic sectors, strengthen national content in manufactures or promote import substitution in sensitive areas, such as basic foods or medications.
Going too far in a protectionist policy could cause commercial reprisals, affect Mexican exports and increase prices for consumers. In addition, without innovation or real competitiveness, protecting inefficient industries only posts structural problems.
While some political sectors in Mexico ask for greater protection against Chinese imports or demand to “rescue” the national field of foreign competition, others bet to deepen integration into the North American market and attract foreign investment through Nearshoring.
In summary, although radical protectionism does not seem viable or realistic for Mexico today, there is space for strategic policies that strengthen key sectors, as long as they are carefully implemented and respecting international commitments. The challenge is to find balance.
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