Mexico's President-elect Enrique Pena Nieto, right, of the former ruling Institutional Revolutionary Party (PRI), shakes hands with Jose Luna Ramos, president of the magistrates of Mexico's Federal Electoral Tribunal (TRIFE), as he holds a document issued by the TRIFE that declares he won the majority of votes in last July's presidential election in Mexico City, Friday, Aug. 31, 2012. Pena Nieto will be sworn-in to office on Dec. 1.
Mexico is benefiting from ties to "very competitive" U.S. manufacturers as low wages lure producers discouraged by rising labor costs in Asia, Deputy Finance Minister Gerardo Rodriguez said.
"Many companies are shifting their production capacity back into the U.S." and adding manufacturing jobs at a "good pace," he said last week while in Moscow. He was in Russia to attend a meeting of officials from the 21-member Asia-Pacific Economic Cooperation Group.
Mexico is tied to the U.S. by the North American Free Trade Agreement that bolstered cross-border production chains. "Because of these linkages with the Mexican sector, we're being pulled somewhat by those dynamics," Rodriguez said.
After trailing growth in Brazil during the past decade, Mexico is poised to outperform Latin America's biggest economy for the second consecutive year in 2012. Manufacturers are opening new plants in Mexico as wages in China rise and higher oil prices increase transport costs for Asian companies looking to tap consumers in the United States.