Evidence of nearshoring in the Americas?

Key takeaways

• Trade and geopolitical tensions have coincided with a shift in US imports away from China towards other countries well integrated into global value chains, particularly in Southeast Asia and Mexico.
• Canada, Chile, Costa Rica, the Dominican Republic and Panama have also seen gains in trade shares with the United States, but Brazil, Colombia and Peru have seen a fall in US import shares.
• In Mexico, earnings calls and surveys show strong interest in nearshoring, and manufacturing has been booming. Yet other indicators, such as foreign direct investment (FDI) and job growth in manufacturing, give mixed signals about the economy-wide impact of nearshoring.