Alibaba – the China-based e-commerce giant – and the Ministry of Economy of Mexico will partner to get more Mexican products onto the popular e-commerce platforms of the online retailing giant. This move is aiming to aid the small and medium-sized enterprises of Mexico in expanding internationally as well as in China.
Alibaba to help Mexican firms market better in China
China is the largest consumer market in the world with a growing middle class and Mexico wants to tap that market with the help of none other than the China-based e-commerce giant. In turn, the Chinese online retailing company will provide its technological expertise on payments and logistics. In addition to this, the e-commerce company will share analytics to assist the Mexico-based firms market better to the people in China.
While commenting on the memorandum of understanding inked with Alibaba, Enrique Pena Nieto, Mexican President, said “By partnering with Alibaba, we can expand Mexico’s export options in China and in Asia more broadly, while enhancing Mexican [small- and medium-sized enterprises’] knowledge of e-commerce and cross-border trade.”
The deal is coming when Pena Nieto closes a trip to China on trade and investment. The Mexican President’s trip is part of efforts to open new opportunities for Mexico as the US President – Donald Trump – has threatened to kill the North American Free Trade Agreement, which is worth $1.2 trillion and is the foundation of trade for Mexico, Canada and the U.S.
Donald Trump threatens to terminate the NAFTA
Repeatedly, the U.S. President has been threatening to terminate the North American Free Trade Agreement (NAFTA), which underpins the economy of Mexico. This is the main reason why the government of Pena Nieto has stepped up efforts to open up new trade channels with other countries.
On Tuesday, Mexico, Canada and the United States concluded a second round of talks to modernize NAFTA and according to top officials, progress had been made. Currently, the three countries are re-negotiating NAFTA. Adrian Cisneros Aguilar, a lawyer and director-general of Chevaya, said, “The idea behind Mexico’s current diversification efforts, including going to China, is that, in the event President Donald Trump eventually backs out of NAFTA, we have to be ready to start implementation of plan B, and plan B is China.”
According to Mexican government data cited by ChinaAg, Avocado exports from Mexico to China have hiked up to more than 10,000 metric tons of the green fruit from 17 metric tons back in 2009. Increasing trade between Mexico and China is a thing that consumers would welcome.