A Clear Path Forward for North America Amid Rising Geopolitical Tensions

The Covid-19 pandemic led to massive disruptions in our economy, revealing fundamental weaknesses in many of our trade relationships. In January of this year, it appeared like the global economy just might be back on track, but weeks later, Russia’s invasion of Ukraine sent new shockwaves through the economy, impacting supply chains and energy markets worldwide.

The U.S. and European allies quickly banded together to impose economic sanctions on Russia. That action made it clear that trade can often be just as much about geopolitics as it is about economics. It also put into focus how urgent it is that we broaden and deepen our relationships with our allies and trading partners closer to home.

Amid continued geopolitical tensions, one way to position the region is “ally-shoring,” rebuilding supply chains to source products and services at home and from trusted allies. The approach aims to ensure that the flow of essential goods can readily adapt to future challenges caused by political conflicts, climate-related events, and global health crises…

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Antonio Garza, counsel at White & Case in Mexico City, is an Americas Society board member and former U.S. ambassador to Mexico.