Month: December 2020

US Mexico Trade Relations

The United States shares a very strong trade relationship with Mexico for years. Mexico is a state that is abundant in resources and is listed as one of the 15 largest economies in the world. Besides this, it is also the second-largest economy in Latin America. 

The two countries share high-level coordination between them, making Mexico the second-largest trading partner of the United States. Mexico is also the second-largest export market after Canada. The two-way trade between the two countries reached a whopping number of $614.5 billion in 2019. The extensive bilateral trade between the two countries has developed a strong economic and cultural relationship. The foundation of this relationship was laid under the North American Free Trade Agreement (NAFTA). 

America is a very major part of Mexico’s export market as 80% of the Mexican goods are destined to be America’s. The proof of this is witnessed by the number of exports that America welcomed from Mexico, which was 80%. In 2019, Mexico served to be the second-largest exporter of crude oil to America as well as the biggest exporter of refined petroleum and natural gas. On the other hand, the US exports to Mexico include electrical machinery, vehicles, machinery, mineral fuels, and plastics. These export numbers are about six times higher than that of 1993, when NAFTA entered into the scene. 

A year before NAFTA entered, the two countries’ merchandise balance stood at a surplus of $1.7 billion, which changed to a large deficit of $98.5 billion in 2019. The goods services are estimated to be $101.4 billion while the two-way services trade was measured to be $62.7 billion last year. 

United States exports to Mexico

The goods export of the US to Mexico stands at $256.6 billion in 2019, which is 517% higher than that of 1993. In 2019, the goods and services trade with Mexico totaled to $677.3 billion. The top exports of the US to Mexico remained machinery, electrical machinery, mineral fuels, vehicles, and plastics in 2019, which remained in the two-digit category of 45, 42, 34, 21, and 16 billion dollars. 

The export of services to Mexico also remained high at 32.9 billion dollars in 2019. This has been measured to be 217% higher than the services exports in 1993. These services are listed to be in the categories of transport, travel, and intellectual property. 

US imports from Mexico 

Being the second-largest supplier to America, the total imports were measured to be $358 billion in 2019. This has been seen to be 797% higher than the pre-NAFTA period in 1993. This acquires a total of 14.3% of the total US imports last year. The list of imports are machinery, electrical machinery, medical instruments, and mineral fuels with the digits of 101, 66, 64, 16, and 13 billion dollars. 

The United States also imported agricultural products from Mexico, including fresh fruits, vegetables, wine and beer, snack foods, and processed fruit and vegetables. These imports totaled 28 billion dollars in 2019. 

After the goods, Mexico also exported services to America, which were estimated to be $28.9 billion in 2019, being 301% higher than those in 1993. These services remained in the sector of travel, transport, technical, and other services. 

Trade Balance 

The US trade deficit with Mexico in terms of goods was measured to be 101.4 billion in 2019, which is a 29.5 percent increase from the previous year. On the other hand, the services trade remained in surplus of $3.1 billion, which is a 39.3% decrease from 2018. 

US Mexico Investments 

The US foreign direct investments (FDI) were $100.9 billion in 2019, which was a significant elevation of 5.2% from 2018. These investments were made in the sectors of finance and insurance, manufacturing, and non-bank holding companies. 

On the other hand, Mexico also holds investment projects in the United States that have approximated to be $21.5 billion during the last year. This is a 2.3% increase from the year before that. 

These investments also include the sales of services in Mexico by the US-owned affiliates, which were calculated to be 42.6 billion dollars in 2017 (as per the data available).

The sales of services in the United States by Mexico owned affiliates have been measured to be 9.9 billion dollars.


The United States and Mexico are deeply tied by foreign relations, which play a major role in the strengthening of their relationship. The facts and figures speak for themselves in this regard very profoundly.,overall%20U.S.%20exports%20in%202019.

Tourism Strengthening The U.S. Mexico Ties

The U.S and Mexico have been sharing a very significant and strong relationship over the years. It isn’t tightly knit by the existence of a border in between but also due to the cultural and commercial sentiments that the two communities share for each other. If you think the diplomatic and official ties bound it, then you might want to revise that because it goes far beyond than just that.

When we talk about the cultural intertwinement between the two countries, we have to talk about traveling, which is the central pillar of support behind the relationship. Mexico and America are both beautiful countries- home to some breathtaking landscapes.

Americans love to visit Mexico, especially the tourist destination at the southern border. Around 32.39 million Americans visited Mexico in 2019 alone.

The Gulf of Mexico, the beauty of the Pacific Ocean, their culture, the richness in history, and the food remains the major influences in people visiting the country. Americans love to visit Mexico due to the hospitable weather, cheaper living standard, and amazing food.

This explains why 1.5 million Americans have Mexico as their permanent place of residence. 

We can witness a similar balance in visiting when it comes to Mexican tourism in America. Be it the old buildings or big cities or extremely diverse shopping markets, America has been an excellent spot for a vacation. Around 18.14 Mexicans visited America in 2019.

These figures have been in the two digits for an extended period as in 2011, the number of Mexicans that visited America was around 13.6 million.

When we talk about the permanent residents in America, more than 36.6 million Hispanics of Mexico live in America.  

Hundreds of thousands of Mexicans cross the border to visit America every day legally.

The cultural mix is essential for strengthening the bond between the two countries and is vividly seen in this case.