Exports from Mexico surpass those of Canada for the first time

Canadian external sales were for 449,849 million dollars; Mexico went from position 13 to position 12 among the largest exporting economies on the planet last year

For the first time in history, exports of Mexican products exceeded those of Canada in 2018 , according to data from INEGI and Statistics Canada . In that year, the Mexican exports to the world totaled 450,920 million dollars , while the Canadian external sales were for 449,849 million dollars.

With this, Mexico went from position 13 to 12 of the largest exporting economies in the world.

The displacement was by a marginal amount, after the Mexican exports presented a year-on-year growth of 10.1% and the Canadians climbed 6.9 percent. “Trade is dynamic , there are some years where one country exports more and others where it exports less. What we are seeing is a high-value integration between the two countries and where these increases or decreases will be seen within the two countries, “said Miguel Noyola, Baker McKenzie’s partner in Chicago , United States.

“For me that is not of consequences, but on the contrary. Countries are beginning to balance with their proper proportions, “he added.

Mexico exports to the world mainly cars, oil, computers, auto parts, trucks, telephones, isolated conductors for electricity and televisions. The goods most exported by Canada include oil, cars, gold, petroleum oils except crude, auto parts, gas, wood, medicines, turbojets and airplanes.

Noyola highlighted that the growth rates of Mexican exports have been formidable due to the characteristics of the country itself.

About Canada also he said: “We must understand that the Canadian economy relative to the economy of the US is smaller, but they share a border where they have highly integrated daily exchanges also gives them a special value.”

From the perspective of the French credit insurer Coface, exports from Mexico and Canada are expected to accelerate with the signing of the Treaty between Mexico, the United States and Canada (T-MEC) in September 2018, which put an end to the uncertainty about future trilateral trade relations.

For Canada, conditions will remain unchanged with respect to most sectors, with the exception of dairy products, where Canada has opened 3.6% of its market to the United States .

Despite this agreement, the US decision to maintain tariffs on imports of steel (25%) and aluminum (10%) will continue to affect the metallurgy of Canada in 2019 , even though the sector will benefit from the measure of safeguard (control of imports) that entered into force in October 2018.

The Canadian exports of wood shall be limited by 20% of customs duties United States in January 2018. It is expected that other sectors, such as energy, agriculture and automotive, recover, despite the slowdown in the United States.

Source: vanguardia

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