Francisco Arizala, Tomohide Mineyama, and Hugo Tuesta, researchers at the IMF writing in a Working Paper have taken a closer look at how Mexico’s import/export dynamic changed in the period 2017~2023.
The chart they start the paper with is a corker. Did you know, I didn’t, that Mexico now sends more ‘stuff’ to the U.S. than China?
China’s loss has been whose gain(s)? It’s very clear.
As the paper gets deeper into the weeds we learn not only is Mexico selling more to the U.S. it’s importing more from the rest of the world. In the process it’s improving its expertise in complex global supply chain management and manufacturing.
Contrary also to what many may believe China has not been the biggest investor in Mexico during the study period. The U.S. stands head and shoulders above the rest.
The paper concludes suggesting Mexico should build on this advantageous change.
The work also highlights how the anti-China tariff policy, begun in 2017 by the U.S., has been to many others’ great advantage. Without seriously upending China’s ongoing progress I’d also observe.
You can read the paper in full via this link Relocation of Global Value Chains: The Role of Mexico.
Happy Sunday.