Justin Fox is Bloomberg expert view columnist, former editorial director of Harvard Business Review and author for Time, Fortune and American Banker, who also wrote the book “The Myth of the Rational Market. He analyzes the differences between Mexico and China as U.S. trading partners:
With free trade under fire from the incoming administration and under question from many other quarters, it is U.S. trade relations with China and Mexico that have been getting the most attention and criticism. That makes sense, given that those are two of this country’s three biggest trading partners — and the third is Canada, which is hard to get worked up about.
Although China and Mexico both trade a lot with the U.S., and have both been running significant trade surpluses with the U.S. for decades, that’s where the similarity ends. The China-U.S. trade relationship is spectacularly unbalanced, with a gap between goods exports and imports that exploded not long after China joined the World Trade Organization in 2001 and that, while it has subsided a bit since last year, is still of a scale never seen before “Chimerica” came into being.
By contrast, the U.S. trade relationship with Mexico is a lot more, well, normal (I’ve rendered it on the same scale as the China chart so they’re easier to compare).
Yes, Mexico has been running a trade surplus with the U.S. since a few months after the North American Free Trade Agreement went into effect in January 1994. But since the late 1990s, growth in U.S. exports to Mexico has kept pace with the growth in imports from Mexico. In fact, the current U.S. trade deficit with Mexico is actually smaller, as a percentage of total trade volume, than it was in the mid-1980s.
Click here for full article on Bloomberg
more recommended stories
Two thousand migrants continue marching north despite authorities efforts to stop them
HUEHUETAN, Mexico (AP) — A group.
Rick will hit the Mexican Pacific Coast on Monday as a category 1
Hurricane Rick headed for Mexico’s southern.
Dairo Antonio Usuga, alias “Otoniel,” caught in Necocli, Colombia, Saturday, Oct. 23, 2021
BOGOTA, Colombia (AP) — Colombian security.
Altars exhibition will return to the tourist corridor of Calle 59, in Campeche
CAMPECHE, (October 23, 2021) .- After canceling.
Guides will participate in “alternative tourist tianguis” in the park of Santa Ana in Mérida
They will offer new attractions to.
Ticul Hospital will be ready in 2023, says Mauricio Vila
Merida, Yucatan, (October 23, 2021).- The.
KFC restaurant in eastern Mérida catches fire
Mérida, Yucatán, (October 23, 2021).- This.
Migrants change their course, leave Chiapas bound to Mexico City
Around three thousand migrants left Tapachula,.
Germany issues travel alert to Mexico after killings of foreigners in Tulum
The alert is in addition to.
Man is shot and wounded just a few steps from Fifth Avenue in Playa del Carmen
Quintana Roo, (October 23, 2021).- The.