Introduction
Five Mexican states—Aguascalientes, Guanajuato, Jalisco, Querétaro, and San Luis Potosí—are actively pursuing regionalization strategies that were initially signed years ago, forming the Agency for Economic Cooperation Centro-Bajío-Occidente (CBO).
Objectives and Strategies
The primary goals of this collaboration are to enhance trade between states and foster the growth of local suppliers. Esaú Garza de Vega, Secretary of Economic Development, Science, and Technology of Aguascalientes and president of the agency, emphasized their aim to become a more competitive region by being one of Mexico’s most dynamic regions and a significant market.
Garza de Vega highlighted their focus on joint growth, infrastructure development, skill and talent cultivation, and overall regional strengthening.
Aguascalientes, in partnership with the National Automotive Parts Industry, is working on a supplier development program for the automotive industry. They have already cataloged 220 companies and plan to include more from the other member states, aiming to boost regional content and encourage purchases among local suppliers.
An in-depth evaluation of 85 Aguascalientes-based companies identified 68 with potential for further project stages. The assessment pinpointed areas for improvement, including training, financial support for machinery acquisition, and linking with potential buyers.
Garza de Vega stressed the importance of increasing regional content and becoming more competitive by producing and purchasing more locally. He emphasized that local sourcing is cheaper, faster, and more reliable than importing from Asia.
To boost the region’s economic competitiveness, challenges must be addressed in energy, water supply, road infrastructure, and other areas requiring intervention from all levels of government: municipal, state, and federal.
Subnational Governments’ Relevance
Cindy Blanco Ochoa, Secretary of Economic Development (Sedeco) in Jalisco, underscored the significance of intergovernmental exchange amidst questioning regional integration models.
Blanco Ochoa highlighted the relevance of subnational governments, specifically states, in this context. She aims to strengthen micro, small, and medium enterprises (mipymes) that supply businesses in the Centro-Bajío-Occidente region to meet the content regulations of the Mexico-US-Canada Trade Agreement.
The alliance focuses on developing supply chains and nurturing talent, contributing to one-fifth of Mexico’s total exports valued at approximately 21 million inhabitants and $122,009.9 billion.
Investment and Export Contributions
In 2024, the five entities attracted $5,313.4 billion in Foreign Direct Investment (FDI), accounting for 14.5% of the total FDI received by Mexico, according to the Secretariat of Economy (SE).
Guanajuato led the regional investment capture, followed by Aguascalientes, Querétaro, Jalisco, and San Luis Potosí.
The combined exports of these five states amounted to $122,009.9 billion in 2024, contributing to 22.1% of Mexico’s total exports, as per the National Institute of Statistics and Geography (Inegi).
Guanajuato was again the leading contributor, followed by Jalisco, San Luis Potosí, Querétaro, and Aguascalientes.
Background
The regional strategy’s foundation was the creation of one of Mexico’s most productive manufacturing regions, sharing not only borders but also capabilities. Marco Antonio Del Prete Tercero, Secretary of Sustainable Development (Sedesu) in Querétaro, advocated for strengthening economic relations among the involved states and enhancing commercial exchange.
Del Prete Tercero mentioned that the region aims to grow collectively, especially considering relocation trends and the goal of bolstering capabilities.
The state secretaries participated in the third edition of the International Automotive Industrial Supply Summit (IAISS) held in Querétaro.
Key Questions and Answers
- What is the main objective of the CBO agency? The primary goal is to foster economic cooperation among the five states, leveraging their collective strengths in production and supply chains.
- How does the alliance aim to increase competitiveness? By enhancing regional content, promoting local production and purchasing.
- What challenges does the region face in boosting economic competitiveness? Key areas include ensuring energy, water supply, and road infrastructure, requiring intervention from all levels of government.
- What is the significance of subnational governments in this context? Subnational governments, particularly states, play a crucial role in regional integration and economic development.
- How have the five states contributed to Mexico’s FDI and exports? In 2024, these states attracted significant FDI and contributed substantially to Mexico’s exports.
