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Pallet C e nt ral • No vem be r-D e cem be r 2 0 24 17 need robust traceability mechanisms to comply, potentially reshaping how forests are managed globally. Pallet manufacturers whose pallets are shipped into the EU under load are exempt, but those who manufacture within the EU or ship empty pallets into the EU must comply. Failure to meet these standards can result in limited EU market access, affecting supply chain industries. Similarly, the PPWR imposes restrictions on packaging, including wood pallets, mandating companies review and potentially entirely revamp the type of transport packaging they use. ese restrictions affect manufacturers, suppliers, and industries far beyond Europe, forcing companies worldwide to adapt and invest in new supply chains to maintain access to the EU market. While local, these regulations have a profound global business impact and are why NWPCA closely monitors elections and policy shifts in the EU. 2. Judicial Reforms In Mexico: Investor Concerns And The Global Business Climate Mexico's domestic policies have an outsized influence on global markets, particularly given its proximity to the US and the ongoing nearshoring it is experiencing. is shift is making Mexico an increasingly key manufacturing and trade hub. Recently, changes to the judiciary have raised alarm among international investors, highlighting how an often overlooked policy change—judicial reforms—can ripple far beyond national borders. Judicial independence is a cornerstone of investor confidence. When a country's judicial system is seen as subject to political influence, investors become concerned about the stability of contracts, property rights, and the enforceability of the law. Mexico's new judicial selection process, which some critics argue could centralize power in the executive branch, has sparked fears that it could compromise the rule of law, making the country less attractive to foreign investment. If businesses perceive that they can no longer rely on a fair judicial process, they may hesitate to invest in Mexico, fearing that political shifts could negatively affect their ventures. is fear could lead to reduced foreign direct investment (FDI) and slow economic growth, particularly in manufacturing, energy, and mining—sectors heavily reliant on clear legal frameworks and stable governance. Investors from countries like the US, Canada, and Europe watch Mexico's policy shifts closely, knowing the risks of entering a market with perceived governance vulnerabilities. 3. US Trade Policy: Global Supply Chain Uncertainty e United States, as one of the world's largest economies, plays a pivotal role in international trade. Its posture toward global trade agreements and relationships with critical partners reverberates through the worldwide supply chain. e election will be days away when this article goes to print. Yet, there are significant questions about how either a Kamala Harris or Donald Trump administration would shape future trade policies, and these uncertainties are unsettling for businesses worldwide. Under the Biden administration, we've seen a mix of free trade and protectionist policies. Yet, should Kamala Harris succeed him, her administration's trade policies remain unclear. On the other hand, a potential return of Donald Trump to the presidency could see a resurgence of protectionist policies akin to those during his previous term, when tariffs on China and renegotiations of trade agreements like NAF TA rattled global markets. A protectionist US trade policy would likely lead to disruptions in the global supply chain, especially for countries that depend heavily on trade with the US. Companies reliant on imports might have to reconfigure their supply chains to account for tariffs or import restrictions, driving up costs and potentially slowing production. However, companies dependent primarily on domestic manufacturing will likely see opportunities for growth and expansion. In either scenario, the policies of the US will have a ripple effect across global markets. Businesses, from small enterprises to multinational corporations, must prepare for various scenarios by diversifying supply chains, strengthening relationships with other trade partners, and closely monitoring US political developments. Why Global Policy Awareness Is Key In today's world, policy is no longer a strictly local or national affair; it has global consequences. Whether it's the regulatory might of the EU, judicial reforms in Mexico, or trade policy uncertainties in the US, businesses and investors across the globe must pay attention to international developments. e ripple effects of these policies transcend borders, influencing markets, industries, and economies worldwide. at is why the NWPCA continues building a global public affairs program recognizing this global interconnectedness. We are the only ones engaging on behalf of the worldwide transport packaging industry, navigating this complex and ever-evolving landscape. But with our ability to anticipate and adapt to policy shifts, we're better positioned to compete and remain resilient in the face of global change. Jason Ortega is vice president, public affairs, at NWPCA. He also manages the NWPCA Poli cal Ac on Commi ee for the Associa on. He may be reached at jortega@palletcentral.com or by calling 703.519.6104.

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