Trade Agreements USA & Canada

Every year, over 6.5 million trucks passing at the 54 borders between Mexico and the United States.

Every year, over 6.5 million trucks passing at the 54 borders between Mexico and the United States.

1. Import & Export Mexico

Thanks to the  50 international trade agreements with other countries, Mexico doubled in the last 10 years its export commodities from 229 to 461 billion.

One of the indicator of the huge increase are that more and more international companies started to manufacture its products in Mexico due to its central location and proximity to the United States but also to its modern infrastructure and cheap labour forces.

1. Import & Export Mexico

Thanks to the  50 international trade agreements with other countries, Mexico doubled in the last 10 years its export commodities from 229 to 461 billion.

One of the indicator of the huge increase are that more and more international companies started to manufacture its products in Mexico due to its central location and proximity to the United States but also to its modern infrastructure and cheap labour forces.

2. The USMCA agreement​​

The USMCA (NAFTA) agreement with Canada and United States ensure an import-export of goods and services without difficulties.

In 2018, Mexico was the third-largest trading partner with the US after Canada and China. Mexico is the first or second-largest export destination for more than 25 US states.

At the end of August 2018 Mexico and the United States announced that they had come to terms on a new trade agreement that preserved much of NAFTA but introduced a number of significant changes. Canada also agreed to join the new trade accord, which was branded the United States–Mexico–Canada Agreement (USMCA).

Most of the agreement, which required approval from the countries’ legislatures, went into effect on July 1, 2020. With that agreement, companies are permitted to settle and work in Mexico and import or export goods and services without much difficulty.

Top US product exports include electronics, machinery, plastics, fuels, minerals and vehicles. In addition, Mexico is the second-largest agricultural export market for the US and imported US$19.5 billion worth US agricultural products in 2018.

Top US product exports include electronics, machinery, plastics, fuels, minerals and vehicles.

2. The USMCA agreement​​

The USMCA (NAFTA) agreement with Canada and United States ensure an import-export of goods and services without difficulties.

Top US product exports include electronics, machinery, plastics, fuels, minerals and vehicles.

In 2018, Mexico was the third-largest trading partner with the US after Canada and China. Mexico is the first or second-largest export destination for more than 25 US states.

Most of the agreement, which required approval from the countries’ legislatures, went into effect on July 1, 2020. With that agreement, companies are permitted to settle and work in Mexico and import or export goods and services without much difficulty.

Top US product exports include electronics, machinery, plastics, fuels, minerals and vehicles. In addition, Mexico is the second-largest agricultural export market for the US and imported US$19.5 billion worth US agricultural products in 2018.

Mexico has over 50 trade agreements which makes over 60% of the world's gross domestic product.

3. Export Facts Mexico 2020

Mexico’s top export products by value in 2020 were cars, computers, automotive parts or accessories, trucks and crude oil. Those major exports accounted together for 32.8% of overall exports sales from Mexico. 

84.5% of Mexico’s exports by value were delivered to North American countries while 5.9% were sold to importers in Asia. Furthermore, Mexico shipped 5.1% worth of goods to Europe, followed by  Latin America (4.2%).

Vegetables were with nearly 14% the fastest grower among the top 10 export categories from 2019 to 2020. In second place for improving export sales was gems and precious metals via a 13.5% (especially silver and gold).  Mexico’s shipments of beverages, spirits and vinegar posted the only other gain up by 8.1%.

3. Export Facts Mexico 2020

Mexico’s top export products by value in 2020 were cars, computers, automotive parts or accessories, trucks and crude oil. Those major exports accounted together for 32.8% of overall exports sales from Mexico. 

84.5% of Mexico’s exports by value were delivered to North American countries while 5.9% were sold to importers in Asia. Furthermore, Mexico shipped 5.1% worth of goods to Europe, followed by  Latin America (4.2%).

Vegetables were with nearly 14% the fastest grower among the top 10 export categories from 2019 to 2020. In second place for improving export sales was gems and precious metals via a 13.5% (especially silver and gold).  Mexico’s shipments of beverages, spirits and vinegar posted the only other gain up by 8.1%.

Vehicles, Trucks, Camions

US$100.7 billion (24.1% of total exports)

Machinery including computers

$75.5 billion (18.1%)

Electrical machinery, equipment

$75 billion (17.9%)

Optical, technical, medical apparatus

$18.6 billion (4.4%)

Mineral fuels including oil

$16.8 billion (4%)

Plastics and plastic articles

$9.1 billion (2.2%)

Furniture, bedding, lighting, prefab buildings

$9.1 billion (2.2%)

Vegetables (especially avocado)

$8.5 billion (2%)

Gems and precious metals

$8.15 billion (1.9%)

Beverages, spirits, vinegar

$8.11 billion (1.9%)

4. Export Facts 2018 and forecast 2024

As you can extract from the graph, an increase in all large industries are expected. Based on the forecast, the main focus will be the automotive sector, however also the mechanical industry will rise by up to 15%. 

We have to take into account though that this forecast was done without taking the Pandemic into consideration.

Industry

2018 (millions)

2024 (millions)

Increase in %

Large manufacturer of automotive

Cars

0
0
0 %

Trucks​

0
0
0 %

Air- and Space craft​​

0
0
0 %

Ships

0
0
0 %

Bicycles

0
0
0 %

Mechanical Engineering

0
0
0 %

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