Mexico drives more trade than any other emerging country

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Mexico is in the fourth place of the list of the 10 emerging leaders that most drive the world trade, where the player of the American continent stands out in that top 10 in 2018 as it is grouped by Asian nations and led by China, revealed Carlos Razo, in charge of the Globalization of International Trade and Commodities division of the United Nations Conference on Trade and Development (UNCTAD).

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Currently, Asian nations are driving the expansion of the participation of developing countries in world trade, which indicates that nine out of 10 of these competitors are in Asia, with the exception of Mexico, which has become a key player in Asia. international trade, emphasized the specialist of the United Nations (UN) with headquarters in Geneva.

In this list, Mexico’s exports represent 2.3% of the total lps shipments worldwide, while China has 12.8% of total exports, followed by South Korea with 3.1%, and then Hong Kong with 2.9%.

After Mexico is followed by Singapore with the contribution of 2.1% in the fifth site; Arab Emirates with 1.8% of exports in the sixth, and Taiwan and India with 1.7% (seventh and eighth); while Saudi Arabia contributes 1.5%, and Thailand, with 1.3% of exports.

Carlos Razo recalled that while the trade of goods and services represented 20% of the Gross Domestic Product (GDP) in the 60s, it maintains a very dynamic rhythm due to the rebound of the Asian economies that win spaces worldwide, and of that cake , Mexico has also benefited.

So, until 2018, the value of global trade represents 56% of world GDP. “It has never been marketed as much as it is now, even with tariffs.”

“It was opened to Foreign Direct Investment thanks to the expansion of world trade, the possibilities were opened up to the NAFTA (North American Free Trade Agreement) that has been fundamental, the possibilities were opened up so that Mexico can now have that degree of level of manufacturing and 900,000 people work in the automotive industry, “said the director of the International Trade Globalization area.

According to the economist and member of UNCTAD, Mexico has been transformed since the commercial opening, which has maintained ups and downs, it is the only Latin American economy that appears as an export leader and competes among the big emerging economies.

“Mexico has faced a structural change when transforming its basic manufacturing exports to an added value, where medical, aerospace, automotive, electronic devices, among others, are elaborated,” Razo said.

Statistics show that Mexico and China are currently in a “you to you” position regarding the degree of export complexity, since both maintain changes in the structure of manufacturing that has been from least to highest added value. He recalled that a decade ago, Mexico was positioned in the fifth place among the leaders, with a share of 2% of world exports.

“The great aspiration of Latin America and the rest of the regions is to capture a greater percentage of world trade (…) so in history it is observed that while developed nations are losing spaces”, the emerging ones such as Asians and Mexico is absorbing that piece of cake, said the UN member.

Source: el economista

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