Monday, May 20, 2024

Mexico is the United States’ second largest trade partner; bilateral trade has increased in 2022

Mexico was the United States’ second largest trade partner in the first seven months of the year with two-way trade worth almost US $450 billion, U.S. government data shows.

United States Census Bureau data published this week shows that two-way trade increased 19.8% between January and July to $449.8 billion. Almost 60% of that amount – $261.9 billion – came from Mexican exports to the United States, while imports from the U.S. were worth $187.9 billion.

The value of Mexico’s exports to the United States increased 20% compared to the first seven months of 2021, while imports from the U.S. rose 19.5%.

Mexico was also the United States’ second largest trade partner in 2021, behind Canada. It seized the No. 1 position earlier this year, but has since relinquished it.

Most of Mexico’s export income comes from manufactured goods, including vehicles, machinery, computers and televisions. However, it also sends a range of other products to the United States and other countries further afield, among which are crude oil, fruit and vegetables, chemicals, beer and alcoholic beverages such as tequila, mezcal and wine.

Among the products that Mexico imports are gasoline and other refined fuels – a situation President López Obrador is trying to bring to an end – food (including corn) and consumer goods such as cell phones.

Canada edged out Mexico as the United States’ No. 1 trade partner in the first seven months of the year, with Canadian-American trade totaling $466.7 billion. China ranked as the United States’ third largest trade partner, with Sino-U.S. trade worth $402.3 billion between January and July.

The trade between Mexico and its northern neighbor left the former with a surplus of almost $74 billion so far this year. However, taking into account all trade partners, overall Mexico is running a trade deficit for 2022.

Data from national statistics agency INEGI shows that the value of Mexican exports to all countries around the world in the first seven months of the year was $327.3 billion. Imports in the same period totaled $346.2 billion, leaving Mexico with a trade deficit of $18.9 billion.

Trade surpluses have only been achieved in two months this year – February and March – while there were deficits in January and the four months between April and July. Mexico recorded a trade deficit of $10.9 billion in 2021.

With reports from Sin Embargo and Aristegui Noticias 

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