The U.S.– Mexico economic relationship is one of the world's most dynamic and integrated partnerships. In 2022, total trade between Mexico and the U.S. surpassed $779 billion, an increase of 18% compared to 2021, setting a new historical high level, making Mexico the United States’ second-most important economic partner.
The U.S.- Mexico trade relationship is essential for both economies. Last year, our bilateral trade reached over 779 billion, nine times bigger than before NAFTA. US exports to Mexico have multiplied by ten. Mexico and the U.S. trade over $1.5 million in products every minute. Trade between Mexico and the U.S. is greater than U.S. trade with Japan, Germany, South Korea, and the United Kingdom combined.
Mexico is the US’ 2nd largest export market. In fact, Mexico buys 16% of all US exports. This means that Mexico buys more products from the US than the Euro area; or more than Japan, South Korea, Taiwan, Singapore, and Hong Kong combined.
Furthermore, Mexico’s exports of manufactured goods are not just more prominent but also more technologically sophisticated.
Trade with Mexico benefits the United States, as Mexico is an increasingly important market for more states’ exports. Mexico is the largest export market for six US states, the second-largest for 21 states, and the third-largest for another six states.
Before NAFTA, almost three decades ago, Mexico was the most important export market for only two states: Texas and Arizona. Currently, Mexico is also the top buyer for products from California, New Mexico, Nebraska and Kansas.
Trade with Mexico supports five million jobs across the US. In every state, workers produce raw materials, goods, and services for the Mexican economy and provide services to bring final consumer products from Mexico to the supermarkets and Mexican-made components and parts for further processing in US industrial plants. Therefore, Mexico and the U.S. make things together, supporting local jobs.
Over nearly three decades of enjoying duty-free market access, Mexico and the US have developed highly integrated economic ties across multiple industries.
Did you know that about 40% of the final Mexican exports to the U.S. are U.S.-made content? This means we produce together. In addition, 50% of North American trade consists of intermediate goods, where parts and components cross the border back and forth several times before the final product is assembled.
As the world economy moves forward deep into the 21st Century, we are experiencing rapid changes on multiple fronts, from technological advances and geopolitical realignments to social demographics and climate. Each transition comes with potential strains and disruptions impacting long-established global trade flows. For example, the pattern of trade-led global growth that has prevailed in recent decades is challenged due to a rise in the risk assessment of maintaining long supply chains. In addition, in tandem with extreme weather events, geopolitical instability has incentivized companies to diversify their supply chain risks, creating an opportunity to consolidate a more robust regional-based supply chain in North America that is resilient and competitive.
Mexico has attracted the attention of companies around the world because:
Wide network of free trade agreements, particularly the USMCA
North American supply chains
Highly skilled labor force
Shares with the U.S., the most dynamic border in the world
Mexico and the United States share the same economic growth goals, so we have aligned our goals toward strategic industries.
Two recent laws approved in the U.S. could positively affect North America: The CHIPS Act and the Inflation Reduction Act. The inclusion of the North American region in the Inflation Reduction Act occurs at a critical moment, seeking to strengthen the regional supply chains’ global competitiveness. It aligns the domestic priority with a regional vision, recognizing that to compete globally, we must do so in North America.
Mexico and the U.S. have a complex bilateral relationship that requires constant dialogue between both governments. This is why we have created different mechanisms to address modern challenges. Two of these mechanisms are the High-Level Economic Dialogue (H-LED) and the North American Leaders’ Summit (NALS), which help us discuss and coordinate bilateral inter-agencies actions to improve infrastructure, supply chains, cybersecurity, SMEs, and workforce development, among others.
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