When you see the label Hecho
en Mexico on an item of clothing or a can of coffee, you will know that
what you buy is genuinely North American, even though it is not produced in the
United States. While some people associate Mexico with their ancient culture
and heritage - indeed, as a popular tourist destination, Mexico takes pride in
their preservation of Aztec ruins and contributions to art, music, and sports -
society is quite modern and the economy enjoys great health. It is estimated
that in less than ten years the total economy will triple its current worth.
Despite the country's frequent seismic activity - the
nation's capital of Mexico City is especially vulnerable to quakes - Mexico
maintains the eleventh largest economy in the world, due in part perhaps to the
North American Free Trade Agreement (NAFTA), which is the largest trade bloc in
the world. NAFTA was created during the Clinton Administration in the early
1990s for the purpose of eliminating trade barriers between the three countries
that comprise North America - this included the dissolution of tariffs on
Mexican exports into the United States, which has made it easier for Mexican
businesses and manufacturers to thrive when dealing with their primary trade partner.
While nearly fifty percent of Mexico's trade is with the US, the country also
works to a lesser extent with Japan, Germany, South Korea, and China.
Main Exports of Mexico
Mexico offers rich natural resources in addition to
assembled products from supplies imported from the United States. Some of the
more popular exports include:
Silver - Stroll the plazas and touristy areas of coastal
towns and central cities, and you'll find beautiful silver jewelry among the
woven blankets and other curiosities. Mexican silver is popular import into the
US, often arriving in the form of elegant jewelry and cutlery.
Automobiles - The top automakers in the world have plants in
Mexico - Asian, American, and European brands are all represented. It is
estimated that one of every seven cars sold in the world is assembled in
Mexico.
Oil and byproducts - Mexico produces close to four million
barrels of oil daily, putting the country among the top ten world's producers.
Crude, oil, and natural gas exports account for a large percentage of the
nation's overall foreign income.
Food - Fruits and vegetables, coffee, and livestock are some
of the more popular exports cultivated here. Especially in the southern United
States, one can find a myriad of ethnic grocery shops featuring known Mexican
brands like Bimbo for bread and pastry, Carlos V for chocolate, and Goya.
Mexico is also the second largest bottler of Coca-Cola soft drinks.
Electronics - You may be surprised to know that Mexico, not
China, is the largest manufacturer of smart phones in the industry. The amazing
growth of the country's electronics sector in the last decade prompted the
development of Mexico's own telecom companies, creating a shift away from
manufacturing products for foreign brands with headquarters in Mexico. Zonda, a
domestic telecom company, is a healthy competitor of Sony and Samsung.
Main Imports of Mexico
Much of what is brought into Mexico is used to assemble the
end products that are exported, most often to the United States. These include electrical
supplies, plastics, and other parts used to manufacture phones and automobiles.
Growing interest in developing an aerospace program has the country interested
in negotiating with foreign firms for the applicable technology and hardware as
well. Of the non-industrial imports, tobacco is one of the fastest-growing in
terms of demand.
As our immediate neighbor, Mexico remains an important
trade partner. As their own domestic economy improves, one will note the
eventual reach to other countries for goods and services, and eventually a rise
to greater importance in global trade.