u. s. mexico trade and investment relationship · total trade mexico - u.s.2 $ 81 $ 611.5 650.4%...

U. S. – Mexico Trade and Investment Relationship

Section of Economic AffairsEmbassy of Mexico to the United States

May 2020

Embassy of Mexico to the USSection of Economic Affairs

In 2018 Mexico ranked worldwide as …

15th largest economy1:

$1.02

$1.22

$1.42

$1.43

$1.62

$1.63

$1.71

$1.87

$2.07

$2.72

$2.78

$2.83

$4.00

$4.97

$13.41

$20.49

0 5 10 15 20 25

Indonesia

Mexico

Australia

Spain

S. Korea

Russia

Canada

Brazil

Italy

India

France

U.K.

Germany

Japan

China

US

USD trillions

12th largest exporter2:

$345

$413

$443

$451

$451

$467

$486

$547

$568

$582

$605

$724

$738

$1,561

$1,666

$2,487

0 1,000 2,000 3,000

Spain

Singapore

Russia

Canada

Mexico

Belgium

U.K.

Italy

Hong Kong

France

S. Korea

Netherlands

Japan

Germany

US

China

USD Billions

15th largest FDI receiver3:

$25.7

$31.6

$37.3

$39.6

$42.3

$43.6

$44.2

$57.4

$60.4

$61.2

$64.5

$69.7

$77.6

$115.7

$139.0

$251.8

$0 $100 $200 $300

Germany

Mexico

France

Canada

India

Spain

British Virgin I.

Cayman Islands

Australia

Brazil

U.K.

Netherlands

Singapore

China - Hong Kong

China

US

USD Billions

1 IMF -World Economic Outlook, October 2019; GDP, current prices 2 WTO – International Trade and Market Access Data; Total exports of goods by country 3 UNCTAD – FDI inward flows by country


The US is important to Mexicobecause:

Mexico sends about 80% of its total exports to the US1.

82.7

%

84

.8%

83.3%

83.9

%

85.5%

87

.6%

88

.2%

88

.7%

88

.8%

88

.1%

87

.6%

87

.5%

85.7

%

84

.7%

82.1%

80

.2%

80

.6%

80

.0%

78

.5%

77

.6%

78

.8%

80

.2%

81.2%

80

.9%

79

.8%

79

.5%

80

.5%

17.3%

15.2%

16.7

%

16.1%

14.5%

12.4%

11.8%

11.3%

11.2%

11.9%

12.4%

12.5%

14.3%

15.3%

17.9

%

19.8

%

19.4

%

20.0

%

21.5%

22.4%

21.2%

19.8

%

18.8

%

19.1%

20.2%

20.5%

19.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Percentage of exports sent to the US Percentage of exports sent to other countries

The US is Mexico’s main origin of FDI2.

$11.9$21.6

$13.6 $11.1 $9.9$14.3 $14.3 $16.2 $12.0 $9.0 $11.1 $13.2 $10.0

$17.0$10.4

$19.1$11.1 $14.7 $12.3

$4.4

$6.4

$8.8$5.2

$11.3 $6.8 $3.8

$9.5 $9.2

$5.0

$11.7 $6.6$3.9

$20.8

$10.5

$8.9

$9.6$9.2 $10.4

-$10

$0

$10

$20

$30

$40

$50

$60

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Bill

ion

so

f D

olla

rso

f F

DI

US Canada EU Israel Japan S. Korea Argentina Switzerland Others

Sources: 1 Mexico’s Instituto Nacional de Estadística y Geografía (INEGI)2 Mexico’s Ministry of the Economy – Secretaría de Economía (SE)

Between 2000 and 2018, 48% of Mexico’s total FDI came from the US.


And Mexican economy hasbecome more open since tradeagreements entered into force.

Concept 1993 2018 Change

Mexico’s Total Exports1 $ 51.9 $ 450.6 768.3%

Mexican Exports to the U.S.2 $ 40(82.07% of total)*

$ 346.5(79.5% of total)*

768.1%

Mexico’s Total Imports1 $ 65.4 $ 464.2 610.2%

Mexican Imports from the U.S.2 $ 42(69.2% of total)*

$ 265(46.5% of total)*

537.3%

Mexico’s total trade1 $ 117.3 $ 914.8 680.2%

Total trade Mexico - U.S.2 $ 81 $ 611.5 650.4%

Mexico’s total trade1 / GDP3 23.3% 74.8% 51.5 points

Sources: 1 Mexico’s Instituto Nacional de Estadística y Geografía (INEGI), billions of US dollars 2 Department of Commerce – International Trade Administration (ITA), billions of US dollars3 International Monetary Fund – World Economic Outlook, april 2019. *Percentage based on INEGI figures. 4 Atlas of Economic Complexity - http://atlas.cid.harvard.edu/, 2017

With a very diversified exportbasket4.

Mexico has 13 FTAs with 50 countries which account for two thirds of world GDP, and a billion consumers.

Mexico is a Relevant Actor in International Trade

Embassy of Mexico to the United StatesSection of Economic Affairs


Source: U. S. Department of Commerce – International Trade Administration (ITA)

U. S. Trade with Mexico 1993 – 2019

$256

$358

$0

$50

$100

$150

$200

$250

$300

$350

$40019

9319

9419

9519

9619

9719

9819

9920

00

200

120

02

200

320

04

200

520

06

200

720

08

200

920

1020

1120

1220

1320

1420

1520

1620

1720

1820

19

Bill

ion

s o

f D

olla

rs

Exports to Mexico Imports from Mexico

NAFTA768 %

537%



$549

$337 $256 $292

$107 $75

$678

$515

$358 $320

$452

$144

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

NAFTA European Union Mexico Canada China Japan

Bill

ion

s o

f D

olla

rs

U.S. Exports U.S. Imports

U. S. Total Trade by Selected Partners in 2019

• Mexico is the second destination for U.S. exports and its third main trade partner. • U.S. total trade with its NAFTA partners is 44% larger than U.S.-European Union total trade.



U.S.: Main Trade Partners in 2019

*Percentage of exports



U.S. Main Export Destinations in 2019

*Percentage of exports


Source: Mexican Ministry of Economy – www.naftamexico.net

State Jobs State Jobs

California 565,000 Connecticut 61,000

Texas 382,000 Kentucky 61,000

New York 322,000 Oregon 57,000

Florida 290,000 Iowa 53,000

Illinois 200,000 Oklahoma 51,000

Pennsylvania 200,000 Kansas 48,000

Ohio 178,000 Utah 47,000

Rhode Island 170,000 Nevada 44,000

Georgia 152,000 Arkansas 42,000

North Carolina 151,000 Mississippi 41,000

New Jersey 141,000 Nebraska 34,000

Michigan 138,000 New Mexico 27,000

Virginia 134,000 District of Columbia 24,000

Massachusetts 118,000 Hawaii 24,000

Washington 107,000 Idaho 23,000

Tennessee 100,000 West Virginia 23,000

Missouri 97,000 Maine 22,000

Maryland 96,000 New Hampshire 22,000

Wisconsin 96,000 Montana 17,000

Indiana 95,000 Delaware 15,000

Minnesota 93,000 South Dakota 15,000

Arizona 89,000 North Dakota 13,000

Colorado 88,000 Alaska 11,000

South Carolina 70,000 Vermont 11,000

Alabama 67,000 Wyoming 9,000

Louisiana 65,000

The U.S. and Mexico are Deeply Integrated

Top US exports to Mexico, 2019

Prod. Amount Share

1 Gasoline 27.9 B 10.50%

2 Autoparts 17.0 B 6.40%

3 Acc/computers 11.7 B 4.40%

4 Low cost shipments 7.4 B 2.80%

5 Integrated circuits 6.9 B 2.60%

6 Gas 5.4 B 2.00%

7 Computers 5.1 B 1.90%

8 Diesel motors 4.5 B 1.70%

9 Electric switches 4.4 B 1.70%

10 Tlephones and cellphones 4.4 B 1.60%

Top US imports from Mexico, 2019

Prod. Amount Share

1 Automobiles 35.0 B 10.1%

2 Computers 26.4 B 7.6%

3 Autoparts 24.7 B 7.1%

4 Veh/transp/goods 22.8 B 6.6%

5 Crude oil 14.2 B 4.1%

6 Insulated wire 11.4 B 3.3%

7 Phones/cellphones 10.5 B 3.0%

8 Televisions 9.0 B 2.6%

9 Tractors 8.6 B 2.5%

10 Seats 7.0 B 2.0%

Exports, 2019

265.4 B

Imports, 2019

346.1 B

Source: Secretaria de Economía with data from the U.S. Census Bureau .

U.S. trade in goods with Mexico accounts for U.S. $615 billion and is part,among others, of global supply chains specialized in the electric andindustrial machinery sectors, as well as the automotive.


Source: Secretaria de Economía with data from the U.S. Census Bureau .

WA

OR

CA

MT

ID

NV

AZ

UT

WY

CO

NM

TX

OK

KSNE

SD

ND

MN

IA

MO

AR

LA

MSAL

GA

FL

SCTN

NC

IL

WIMI

OH

IN

KY

WV VA

PA

NY

ME

VT

NH

NJ

DEMD

Washington D.C.

MA

CT

RI

Exports 8.2 BJobs 172,162Share 33%


Exports 109 BJobs 509,870Share 33%





Mexico is the largest export market for 7 U.S. statesMexico is the second largest export market for 19 U.S. statesMexico is the thirdlargest export market for 3 U.S. states.

U.S. states exports rely on Mexico

U.S. exports by State, 2019


Minnesota Trade Overview

Mexico is the US Top Trading Partner in agricultural products

In 2019 the U.S. and Mexico traded over 47.5 billion dollars in agricultural goods, accounting for a greater value than all U.S. exports to Italy and Spain combined .

19.2 20.813.8

28.3 B 23.6 B

3.6 B

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Mexico Canadá China

Bill

ion

s o

f U

S d

olla

rs

2019

U.S. Top Trading Partners in Agriculture

Exports Imports

Source: Secretaria de Economía with data from the Foreign Agricultural Service, USDA.



Investment of Mexican Corporations in the U.S.

Source: U.S. Chamber of Commerce – www.usmexicobusiness.com

U. S. – Mexico Trade and Investment Relationship

Section of Economic AffairsEmbassy of Mexico to the United StatesMay 2020

u. s. mexico trade and investment relationship · total trade mexico - u.s.2 $ 81 $ 611.5 650.4%...

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