NEW YORK -- Mexico has surpassed China to become the biggest exporter of goods to the U.S. in 2023, according to data released Wednesday.
The U.S. imported a total of $427.2 billion from China last year, a roughly 20% decrease from the year before, according to the Bureau of Economic Analysis, a U.S. government agency. Meanwhile, Mexico exported $475.6 billion to the U.S., up 5% from 2022.Mexico's exports to the U.S. surpassed China's for the first time in 20 years.
NEW YORK -- Mexico has surpassed China to become the biggest exporter of goods to the U.S. in 2023, according to data released Wednesday. The U.S. imported a total of $427.2 billion from China last year, a roughly 20% decrease from the year before, according to the Bureau of Economic Analysis, a U.S. government agency.
Data released last week from the US Department of Commerce showed that Mexico surpassed China in 2023 to become the leading trade partner of the United States.
Mexico Is Growing as New China Hub; 2024 Exports Already Breaking Records. Mexico is fast becoming a new hub for China offshore investment and exports. The U.S. share of foreign direct investment (FDI) in Mexico has little changed over the years, while China's share is rising quickly.
Figures released Wednesday by the U.S. Commerce Department show that the value of goods imported to the United States from Mexico rose nearly 5 percent from 2022 to 2023, to more than $475 billion. At the same time, the value of Chinese imports imports tumbled 20 percent to $427 billion.
Mexico is an attractive manufacturing alternative due to the benefits of localization. Free trade agreements between the U.S., Mexico, and Canada (USMCA) eliminate tariffs on most goods manufactured in Mexico. In addition, Mexico is a much lower geopolitical risk than China.
New data released Wednesday by the Commerce Department showed that in 2023, Mexico was the leading source of goods imported to the US — ahead of China for the first time in over 20 years. Mexico surpassing China as America's top trade partner signals a significant shift in global commerce dynamics.
There are a few theories as to why this is occurring. One of the most popular and somewhat commonsensical is that China and/or its sourcing partners are bypassing tariffs by bringing goods into Mexico before sending them across the border, essentially making them “Mexican” imports and avoiding tariffs.
About. Mexico-United States In 2022, Mexico exported $421B to United States. The main products that Mexico exported to United States are Computers ($36.8B), Cars ($34.1B), and Motor vehicles; parts and accessories (8701 to 8705) ($31.8B).
Exports The top exports of Mexico are Cars ($48.4B), Computers ($39.3B), Crude Petroleum ($38.2B), Motor vehicles; parts and accessories (8701 to 8705) ($38.1B), and Delivery Trucks ($29.1B), exporting mostly to United States ($421B), Canada ($22.2B), China ($12.7B), Chinese Taipei ($7.86B), and South Korea ($7.29B).
Trade of Mexico. The United States is Mexico's most important trading partner, and U.S.-based companies account for more than half of Mexico's foreign investment.
In Mexico, Chinese investment is in services and manufacturing, including of electronics, cars and home appliances. In the 1990s and 2000s Mexican exports to America lost out to Chinese competition. Now Chinese investments are helping Mexico's exporters.
Mexico's exports to the U.S. surpassed China's for the first time in 20 years. American companies have been diversifying supply chains due to unstable U.S.-China relations. The Biden administration has been encouraging this trend, calling it "friendshoring" to mitigate geopolitical risks.
The traditional Chinatown of Mexico City is next to the historic city centre. Locals say it is the smallest “Barrio Chino” in the world since it only covers one block. Although its history goes back to the early 20th century, renovations in the last two decades shaped its present form.
Amid shifting geopolitics and competition, US and Chinese companies both see potential in Mexican manufacturing: Low labor costs, geographic proximity to American markets and the US-Mexico-Canada (USMCA) agreement — a free trade accord established in 2020 that makes trade in North America more cost-effective and ...
Production costs: Production Costs are much lower in Mexico than they are in China. On average, labour costs in Mexico are 20% lower than in China, while factory rental fees and compliance regulations tend to be lower as well.
As US supply chains decouple from China, Mexico's manufacturing sector is emerging as a winner. Manufacturing in Mexico is attractive for companies that experienced pandemic-era supply chain snarls or want to decrease reliance on trade between the US and China amid geopolitical uncertainty.
Moving manufacturing to Mexico allows companies to diversify their supply chains and reduce their dependence on China. This not only reduces risk but also increases supply chain resilience, allowing companies to better respond to future disruptions. Government policies and incentives also play a role in this shift.
Relative to the United States, along with most other developed countries, direct labor in Mexico is approximately 70% less expensive. This cost-effective, competitive labor is the driving force behind the success of Mexico manufacturing.
Introduction: My name is Tish Haag, I am a excited, delightful, curious, beautiful, agreeable, enchanting, fancy person who loves writing and wants to share my knowledge and understanding with you.
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