Mexico is the unexpected winner of the US-China trade war

Mexico led the gains in the participation of total imports of products from the United States among the 10 main suppliers of that market during the period from January to September of 2019, according to data released on Tuesday November 5th by the Census Bureau.

Thus, Mexico scaled its share from 13.7% in the first nine months of 2018 to 14.4% in the same period of the current year, this is 0.7 percentage points more.

In that same classification, only two countries lost market share: China fell 2.8 percentage points, reaching 18.2%, and Canada decreased 0.1 points, reaching 12.7 percent.

The remaining seven nations gained a share: with an increase of 0.3 percentage points, France covered 2.3% of total US merchandise imports; with an increase of 0.2 percentage points; Japan (5.8%), Korea (3.1%) United Kingdom (2.5%), and with an advance of 0.1 percentage points, Germany (5.1%), Ireland (2.4%) and India (2.3 percent).

From January to September, US imports of products totaled $ 1.8 trillion USD.

Among its advantages, Mexico has a geographic strategic location, the elimination of tariffs on trade flows, skilled labor and lower wages, and a relative greater confidence in the protection of trade secrets, trademarks and patents.

According to the Economic Commission of Latin America and the Caribbean, the weak recovery of advanced economies after the global financial crisis, coupled with the impact of austerity policies, wage stagnation and increasing inequality, has undermined the proglobalization consensus from the 1990s and 2000s.

To this is added the intense competition between the United States and China for global economic and technological leadership.

The confluence of both factors allows contextualizing the steep increase in trade barriers that has occurred in the last two years.

According to the World Trade Organization, the amount of trade affected by the new import restrictive measures implemented in the world between October 2018 and May 2019 was the second highest since this indicator began to be measured in 2012.

Source: El Economista

The Mazatlan Post

Facebook Comments