Foreign trade, Mexico’s strongest card
- Posted by México
- On Wednesday February 15th, 2017
- 0 Comments
- australia, brazil, canada, costa rica, ecuador, el salvador, gatt, guatemala, imf, israel, japan, Mexico, NAFTA, nicaragua, OECD, pacific alliance, Peru, tpp, ue, uruguay, usa
Mexico is the 12th largest exporter in the world thanks to foreign trade, but the country could become exposed due to new policies that may be imposed by its northern neighbor.
Fortunately, Mexico is a big partner for the nations of the world and it could become a really important country for the production and distribution chains around the world. The top export destinations for Mexico’s foreign trade are:
- United States
The top import origins come from:
- United States
- South Korea
Foreign trade is the 66% of Mexico’s GDP, more than any other large country. Most of its exports are manufactured products such as:
- Crude petroleum
- Vehicle parts
The country’s top imports are:
- Fuels or refined petroleum
- Vehicle parts
- Integrated circuits
- Broadcasting accessories
More than 90% of Mexico’s foreign trade is under 12 free trade agreements with over 40 countries. Its largest trade partners are the United States, Canada, China, the EU and Japan. Other business associates are Guatemala, Honduras, El Salvador, Brasil and Chile.
Mexico has 44 free trade agreements, this means any company that manufactures in the country has duty-free access to 60% of the world’s GDP. That’s why there has been economic stability in Mexico, because it produces and exports the same amount of goods as the rest of Latin America combined.
Nowadays, many foreign firms have installed factories and set up semi-independent joint venture companies to manufacture and design components in Mexico. These new corporations are operated from their foreign parent companies, function under Mexican laws and retain a sizable portion of the revenue. This has been really productive thanks to the country’s workforce.
Although the panorama is difficult, there have been new meetings with Mexico’s associates to start developing new commercial policies which will raise foreign trade and economic participation around the world. Even if it has to deal with new partnerships, modernization shall create a great opportunity.
Mexico has become an interesting environment for the creation and relocation of companies. Luckily, the country is an interesting destination because it has grown out so well in the globalization culture, that nowadays is receiving more expatriates and many of its conationals are finding more and better opportunities to develop. Reasons why this is one of the most reliable nations to invest including its monetary stability.
Finally, due to the great potential Mexico has in international trade and the opening of its energy sector to the world’s market to attract foreign direct investment, the priorities will remain focused on prudent monetary and fiscal policies to create conditions for a stronger financial growth and to build a more secure nation.