Mexico is Top US Trade Partner Again

According to the most recent numbers, Mexico has regained their position as the top US trade partner. Mexico’s economy, while experiencing inflationary challenges, has proved resilient in the post-COVID recovery. Bolstered by a dynamic manufacturing sector, the country’s recent numbers appear positive. 

Several key industries and economic activities contribute to this strength on a global scale. And this return to the top spot as trade partner of choice with the United States cements Mexico’s status as an international trade powerhouse.

Mexico’s Trade Numbers

When new trade data was released for February, 2022, China fell from #1 to #3. But Mexico moved from the #2 position to the top US trade partner – a position it last saw as recently as April of 2021. Canada is now sitting in the #2 spot, just behind Mexico. By the numbers, it’s clear that Mexico’s export-based manufacturing sector is driving their economy, in spite of the difficulties of the previous two years. 

According to recent statistics:

• Mexican exports to the US rose 19% to $33 billion USD.
• Mexican imports from the US rose 13% to $23.7 billion USD.
• Total trade between the US and Mexico rose 16% year-over-year to $56.25 billion USD.

In contrast, other leading US trading partners trailed behind. Currently:

• Germany is the 5th largest trading partner at $14.8 billion in total US trade.
• Japan is the 4th largest trading partner at $18 billion in total US trade.
• Exporting behemoth, China, is the 3rd largest at $53.9 billion in total US trade.
• Canada is a close 2nd at $56.2 billion in total US trade.

Mexico utilizes several key ports and border crossings to exchange many millions of dollars in value each day with the United States. The primary trade portals are:

1. Port Laredo, with $21.4 billion USD in trade and 211,347 commercial truck crossings for February
2. Ysleta border bridge, with $5.3 billion in trade for February
3. Otay Mesa freeway border crossing, with $4.6 billion for February
4. Pharr-Reynosa International Bridge, with $3.6 billion for February
5. Eagle Pass International Bridge, with $2.4 billion for February

Primary Industries

Mexico trades in many commodities and goods as the top US trade partner. In February, the top exports to the US were:

• Passenger vehicles
• Automotive parts (Mexico is now the 4th largest global supplier)
• Computers
• Commercial vehicles
• Oil

In turn, Mexico imports from the US primarily:

• Gasoline
• Automotive parts
• Natural gas
• Computers and chips

However, at 89% of total exports, the lion’s share of Mexico’s global trade is driven by manufactured goods. Last year, non-oil exports rose to $31.5 billion USD. Mexico’s top manufacturing sectors bolstering their status as top US trade partner include the following:

1. Aerospace
   
   Based predominantly in and around the border regions, Mexico’s aerospace manufacturing sector has enjoyed an average of 14% annual growth, with nearly 400 firms and organizations in operation.

2. Automotive
   
   As the current 4th largest producer of parts and 7th largest automotive producer overall, Mexico is attracting significant automotive investment. 

3. Medical Devices
   
   Responsible for over 140,000 jobs primarily in the Baja California area, medical device manufacturing in Mexico averaged $11.1 billion USD in industry sales 2014-2018 in products like ventilators, pacemakers, and even 3D-printed and highly sophisticated AI and wireless solutions. 

4. Textiles
   
   Encompassing simple apparel, detailed furniture upholstery, and sophisticated automotive applications, Mexico annually exports more than $7 billion USD in textiles, primarily to the US. 

5. Electronics
   
   As the 2nd largest electronics exporter to the US and 6th largest manufacturer in the world, Mexico is growing as a global electronics producer – even scoring a 7.1% revenue growth rate in the middle of the 2020 crisis. 

Mexico’s recent dethroning of China as the top US trade partner comes as no surprise. Canada and these two countries have been slugging it out for the top position for a few years. But as Mexico’s manufacturing sector continues putting up stellar numbers, registering growth even during times of recession, and continuously focusing on innovation and improvements, trade with the US will likely rise even further.