According to the IP Commission Report, China is accounts for 50% and 80% of IP theft cases globally, costing the U.S economy $300 billion every year. With staggering numbers like these, it comes as no surprise that many U.S companies are looking elsewhere to set up shop for supply chain operations. Many are looking no further than Mexico – the U.S’s third largest trading partner (just behind China and Canada). In comparison to China, which is widely questioned for the country’s content and enforcement of IP protection laws, Mexico, in accordance to NAFTA, protects select intellectual properties including trademarks, copyright of data and sound recordings, patents or inventions, and industrial designs. In addition, Mexican courts typically respect and enforce companies’ intellectual property rights.

Since the enactment of NAFTA in 1994, Mexico’s GDP has risen approximately $383 billion to nearly $1.3 trillion – due in part to the advantages of Mexico’s proximity to the United States. Offering shorter lead times, low labor costs, and cultural similarities, more and more U.S companies are joining the nearshoring trend. However, while this investment may present many advantages – the process is not without its challenges.

On October 22, US-Mexico Chamber of Commerce hosts a half day conference: Mexico as a Strategic Business Partner. Source One’s Latin America sourcing pundit, Diego De la Garza, will be joining the panel discussion: Supply Chain, Logistics, and Manufacturing. During this panel, members will be discussing both the benefits and challenges of moving supply chain operations to Mexico. De la Garza will be lending his insight based on his own experiences in sourcing from Mexico for top companies in a variety of industries.

For more information on how Source One can support your organization’s nearshoring initiative, visit: Strategic Sourcing in Mexico and Other Near Shore Countries.
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