Mexican exports to the United States grow during the commercial warPublished on 18 November 2019
In July, the value of shipments grew in comparison to the same period of the previous year.
The application of tariffs to products exchanged between the United States and China contrasts with the preservation of stability in the exchange between the first of these two countries and Mexico. With the ratification of the Agreement between the United States, Mexico and Canada (USMCA), successor to the North American Free Trade Agreement (Nafta), Mexican products have been able to maintain their demand in their main market.
In contrast to the fall in oil as a result of lower prices (the price of the WTI barrel went from a range of between US $ 69 and US $ 72 to another between US $ 53 and US $ 60), heavy or complex manufacturing exports have Registered a good performance. The figures for each of both periods are shown in the following table.
As can be seen, all products that registered growth are linked to sectors that the United States seeks to protect with respect to China under the pretext of job creation after price leveling based on tariff rates. In fact, cars and information technology products are among the objects that the United States used to provide as a global leader in the golden age of the rust belt (industrial zone around Lake Michigan and Erie), and those that have been put into he looks at her for doubts about alleged espionage through Chinese mobile devices.
Mexico and Canada are no longer the focus of US trade policy, and can take advantage of the proximity to the country to which they owe the dimension of their economy. As shown, you can see the variety of means of transport used for shipments, as can be seen in the following table
The infrastructure that connects northern Mexico with the southern United States is the greatest evidence of the historical nexus in the trade of both countries. Undoubtedly, it would have been a mistake to lead to greater protectionist escalation between the two, and fortunately both economies can feed their industries, in and of themselves stopped by what could be the prelude to a depressive cycle, which does not seem to involve more than temporary slowdowns , more than structural problems with the capacity to generate systemic and permanent effects. What is coming could be just a temporary correction, which could test the strength achieved after the ratification of the US trade agreement.
For more information on Mexican exports, you can enter the Veritrade portal.
Request your free trial by going to: https://bit.ly/35dk0Fl