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camilo @AscendedYield on x 12.3K followers
Created: 2025-07-25 22:02:47 UTC
Mexico has arguably benefited more than any other Latin American country from trade liberalisation, most notably through NAFTA (now USMCA) and a broad network of FTAs, achieving substantial export growth, FDI inflows, and global supply chain integration. These gains have not translated into sustained real wage growth for the majority of workers.
Why?
Because Mexico's role in global value chains has been structurally defined by labour cost arbitrage, rather than domestic value creation, when foreign firms invest primarily to exploit wage differentials, deploying their technologies, intellectual property, and capital, the production returns accrue disproportionately to external capital owners, rather than to domestic labour.
Mexican workers don't see gains, and the workers in other countries they displaced end up losing the most.
XXXXX engagements
