Inside the Currency Market: Mexico Trade

Intriguing was the 83% of manufactured goods exported to the US and a severe drop in oil exports since 2004. Mexican exports to the US bottomed in 2008 at Minus USD 3292.30 million in October 2012 and peaked in 2013 – 2014. March 2013 saw the peak at 1710.25 USD millions. Never perfectly exact but a great source is Trading Economics who reports the average for exports at minus 237.14 million USD between 1980 – 2015. Manufactured products to some degree is lumped together as certain products are not separated. For example, mining is listed as mining or mining products. My old friend from Thomson Reuters reported for many years that Mexico produces the world’s Silver due from the largest Silver mines in the world. He also reported Cement was a large aspect of exports. Are both statements still true today from just 2 or 3 years ago is unknown, for now. A few stats from the Peak periods and derived from the US and Mexico Trade Offices.

2012. Goods and Services accounted for a total of 535 USD billions. US Exports were 243 billion and imports from Mexico was 293 billion with a deficit of 49 billion USD. Private sector services in imports and exports totaled 4.2 billion USD in 2011. Service exports totaled 27 billion, imports 15 billion with a USD surplus of 12 billion in 2012.

2013. Mexico was the 2nd largest US goods export market. US goods exports to Mexico in 2013: 226.2 billion, up 4.7% or 10.2 billion from 2012 and up 132% from 2003, up 444% since 1993 pre NAFTA. US exports to Mexico was 14.3% overall US exports in 2013. Top exports 2013, Machinery 38.2 billion, Electrical machinery 36.7 billion, Mineral, Feul and Oil 23.0 billion, vehicles 21.6 billion and Plastics 15.3 billion. US Agricultural exports, 18.1 billion and 3rd largest market. Corn 1.8 billion, Soybeans 1.5 billion, Dairy 1.4 billion, pork and Pork products 1.2 billion, meat 1.2 billion.
US exports private commercial 27.4 billion in 2012, up 16.3% since 2003, up 6.8% since 2011.

Imports 2013. Mexico was 3rd largest supplier of goods to US in 2013. Imports = 280.5 billion 2013, up 1% or 2.9 billion from 2012, up 103% since 2003, up 603% since 1993 Pre HAFTA. imports overall 12.4% 2013. 5 largest categories: Vehicles and parts 59.6 Billion, electrical machinery 57.4 billion, machinery 42.6 billion, mineral, feul and oil 34.4 billion, optical and medical equipment 10.7 billion. US imports Agriculture: 17.7 billion 2013, 2nd largest supplier. Veggies 4.6 billion, fresh fruit minus bananas 3.1 billion, wine and beer 1.9 billion, snack foods including chocolates 1.5 billion.
US imports private commercial services = 15.1 billion, in 2012, up 6.6% or 1.2 billion from 2011, up 30% since 2002, up 104% from 2003.
Trade Balance

Goods trade deficit with Mexico 54.3 billion in 2013, 11.9% decrease or 7.3 billion vs 2012. US had services surplus 12.2 billion in 2012, up 4.4% in 2011.

FDI

Foreign Direct investment in Mexico 101.0 billion in 2012, up 11.3 % since 2011. Major categories mabufacruring, non bank holding companies, financial services and insurance. Mexico FDI 14.9 billion 2012, up 14% since 2011. manufacturing and banking are two most vital categories. Sales and services in Mexico 37.6 billion, Mexico firm sales = 4.9 billion.
Mexico trade to GDP ratio 2011 – 2013 64.6%. Anti Dumping claims in WTO in 2013 = 42, 37 trade disputes, 23 trade complaints.

Brian Twomey, Inside the Currency Market, btwomey.com

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