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How Will the Biden Administration’s Renewed US-Mexico Alliance Impact Shippers?


While the previous POTUS demonstrated his desire for the US to strike out on its own, moving away from many long-standing alliances, President Biden and his administration seek to do just the opposite.

As the United States’ current largest trading partner in goods, Mexico plays a vital role in their national economy as well as the overall health of the global economy. As such, a renewed economic alliance between the US and Mexico is certainly a cause for some relief.

Released earlier in September after Biden’s administration had a sit down with Mexican President Andrés Manuel López Obrador, this White House fact sheet provides the rough outline of the plans for the relaunched U.S.-Mexico High-Level


Economic Dialogue (HLED).

Overview of the U.S.-Mexico High-Level Economic Dialogue (HLED)

Per the White House fact sheet, “established in 2013, the HLED advances strategic economic and commercial priorities for both countries, with the shared goal of fostering economic development and growth, job creation, global competitiveness, and reduction of poverty and inequality.”

The Biden administration’s relaunched HLED is composed of four pillars:


  1. Building Back Together

  2. Promoting Sustainable Economic and Social Development in Southern Mexico and Central America

  3. Securing the Tools for Future Prosperity

  4. Investing in Our People


The first pillar focuses on improving upon existing supply chains while promoting the sharing of environmental technology advancements. A big part of Building Back Together centers around building a better infrastructure (a big talking point for Biden and his multi-trillion-dollar infrastructure plan), including land border-crossings and marine port infrastructure.


The Biden-Harris administration also has a laser focus on reducing emissions and investing in green technology, like renewable energy, while shifting away from fossil fuels. Mexican President López Obrador, on the other hand, may not necessarily see eye-to-eye with the current US leadership, given his own policy history.


What Can Shippers Expect Going Forward?

As we mentioned back in March, Biden is seeking to stop the trade wars while opening the US to more collaboration and partnerships with other nations. The Biden-Harris administration is also pushing to adopt green initiatives helping to counter the global warming crisis.

In the short term, these changes are likely to result in increased investment in green technologies along with the construction of newer, more efficient vessels. However, new regulations and stricter policing are likely to negatively impact the bottom line of many of the world’s largest shipping companies, which may, in turn, result in further price hikes for shippers during this already tumultuous period.

Ultimately, no one knows what the future has in store for us, but one thing is for sure: ClearFreight is here to help you figure out how to best support your supply chain. Contact a ClearFreight expert to hear how our logistics solutions can help you streamline your supply chain and make shipping easier for you.

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