The recent threat by the United States to impose tariffs on all Mexican imports reaffirm the Latin American country's need to diversify its export markets, the Mexican Employers' Confederation (Coparmex) said on Monday.
In a statement, Coparmex said that Mexican exports to the United States account for almost 80 percent of its total, while those to Canada and Germany, Mexico's two other important trading partners, constitute only 3 percent and 2 percent, respectively.
"Mexico's apparent vulnerability to the recent U.S. tariff threat reaffirms its need to diversify its markets for exports," the agency said.
"It is clear that our country can do more to boost the export of more products to other markets," it added.
As part of a series of proposals to that end, Coparmex suggested that the country could look for ways to integrate more local producers, especially small- and medium-sized companies, so that later they could be integrated into global value chains.
Coparmex also recommended improving the logistics infrastructure through strategic investments in ports, airports and customs.
"Mexico is the main exporting country in Latin America, with a high concentration on North America (as a destination market)," said Coparmex.
"The strength of the exchange with North America should not be a reason for ignoring other opportunities," the agency added.
Mexico, the second largest economy in Latin America after Brazil, depends to a large extent on economic cycles in the United States.
U.S. President Donald Trump threatened on May 30 by imposing a 5-percent tariff on all imported Mexican goods beginning June 10 so as to pressure the country to halt undocumented migrants crossing the border and will gradually increase tariffs to as much as 25 percent until the problem is remedied.
The two nations reached an immigration agreement on June 7 that led Trump to indefinitely suspend that threat.