Monday, June 21, 2010

Mexico Gaining in Export Wars to U.S.

Mexico’s exports to the U.S. are taking market share from China as demand rises for Mexican-made refrigerators from Whirlpool Corp. and Dodge Ram pickups from Chrysler Group LLC.

Mexico’s share of the $427.7 billion in goods and services the U.S. imported in the first three months of the year rose to a record 12.3 percent from 11 percent a year ago, helped by a weaker peso and U.S. companies moving manufacturing south of the border. China’s share fell to 17 percent from 18.4 percent.
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The average annual salary for Chinese manufacturing workers was 24,192 yuan ($3,543) in 2008, a 16 percent increase from 2007, according to the National Bureau of Statistics. Mexico’s average manufacturing salaries rose 5.2 percent to 239.8 pesos a day last year from 227.78 pesos in 2008, according to Mexico’s Labor Ministry. Factoring in a work week of five days, the Mexican wage in 2009 would be 62,348 pesos ($4,823)

The US - Mexico political and trading relationship will only deepen as the decades move on. Demographic changes (Los Angeles is already a majority Latino city), Peak Oil, Mexico's relatively untapped markets and somewhat ignored middle class will drive it. At some point, the Mexican government will get control of its drug cartels, just as the United States - from a far wealthier position- finally got control of its organized crime syndicates in the early 1960's. Mexico's nominal GDP is about equal to India's - that vaunted member of BRIC.

1'Mexico Wins U.S. Share From China as Peso Buoys Trade' Bloomberg/Business Week

1 comment:

rosethorn said...

I agree that Mexico needs much more focus from American political leaders. I've written about Mexico migration patterns and Mexico's demographic future and I think that we should focus much more on our immediate neighbors rather than remote locations in Asia.