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because of the costs now that freight has increased dramatically from Asia to our countries more than four to five times for a container,” notes Álvarez. There is now a greater awareness that you need supply chains closer to the US and to the source market because of the need to deliver quickly to the market. And the other one is Made in the Americas Act, which is in the House.
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“One is in the Senate called ACTSA (Advancing Competitiveness, Transparency, and Security in the Americas Act). The United States has also started to look at programs and legislation that would pull away from China as the main manufacturing plant. And it found a trade diversion of $21 billion,” Álvarez points out.īut US efforts to undermine the world’s dependence on Chinese supply chains went beyond tariffs. UNCTAD (United Nations Conference on Trade and Development) did a study in 2019, which looked at trade diversion that occurred from China to other countries between that summer of 2018 and around September of 2019-14 months.
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In 2018, then President Trump imposed a series of tariffs on the People’s Republic of China, beginning sometime in July/September of 2018. First of all, this has been coming now for a while. “ I am very optimistic in the short term, highly optimistic in the medium term and utterly optimistic in the long term. Is the region’s nearshoring pitch successful? As CEOs rethink their supply chain strategies and look to new areas, the Caribbean and Central America are positioning themselves as attractive, close-to-the-US global manufacturers.
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But now, due to COVID disrupted supply chains, growing trade disputes between China and Western nations, and backlash over China’s dismal human rights records, companies are looking for options. Since the early 2000s, most US and European companies cut costs by moving their manufacturing operations to China and Southeast Asia. He is also the author of several books, essays, and articles on human rights and international affairs. foreign policy at several universities and academic centers. He was a professor as well as a guest lecturer on human rights, international law, and U.S. Our guest, Minister Álvarez, has years of experience in foreign service, previously holding the position of Ambassador of the Dominican Republic to the Organization of American States (OAS). In the case of the world’s largest market, the United States, nearshoring represents a new opportunity for countries in the Caribbean and Central American regions. Roberto Álvarez, the Minister of Foreign Affairs of the Dominican Republic, joins Altamar to explain the relatively unknown concept of ‘nearshoring.’ It’s the relocating of previously Asia-dependent manufacturing supply chains to geographically closer regions. Over the years, the world increased its manufacturing dependence on China. Guest: The Dominican Republic’s Foreign Minister Roberto Álvarez