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USA & Mexico Industrial Supply Marketplace

US-Mexico Trade Relationships: Comradeship Within Reach
The Foundations of a Lasting Friendship

Before being friends, Mexico was occupied by U.S forces during the so-called Mexican War in 1847. There may have been several conflicts which have affected the two during those times. However, despite all these disputes, they later on realized that they should also come to terms. It paved the way for international business among the two.

Mexico and United States considered the fact that they are bounded by a body of water known as the Gulf of Mexico. As an arm of the Atlantic Ocean, the gulf was bounded by US on the north and east, Mexico on the west and south and of Cuba in the east. This fact opened the gates of foreign trade for these two nations. They saw an opportunity within their marginal locations.

A lot of treaties came about from the merging of these two lands. There was the so-called Treaty of Guadalupe Hidalgo, the Gadsden Purchase and most famous of all is the North American Free Trade Agreement which they are adapting until now together with a third state, Canada.

Among the remarkable parts of the start of world trade between the two are transport, communication and information technology. Mexico felt that globalization had opened the opportunity to work for better US-trade relations. There were also the free market economies which caused international convergence between the two nations.

In order to support their systems, they also opened imports and exports on both sides. Trading of goods was never an obstacle since they are found on a four-corner gulf. They found it convenient for each other to pass on commodities from time to time, thus, enhancing and increasing their economic stature. The positive and negative sides of the coin may also be seen but the latter have been duly resolved because of the strength of the ties that bind the two countries. They have reckoned the beginning of a wonderful international commitment for a boosting financial system. With these things, the future for both worlds is bright and clear. Their love for each other grew and stood both the low and high tides of their existence.

The Booming Trade: Major Exports and Imports

As of July 31, 2008, the Data Dissemination Branch of the US Census Bureau recorded a very significant intensity to the exports and imports of US to and from Mexico. The imports showed a balance of $19.26 billion while the exports documented a $13.8 billion mark for July alone. As a total for the first seven months of the year, the imports and exports pulled off at an amount of $128.94 billion and $87.78 billion respectively. A complete detail of the major exports and imports for the US-Mexico trade relations in the year 2006 is taken down as follows:

  • Mexico's Exports to US. The top prime commodities which entered the US from Mexico in the year 2006 were headed by crude oil which increased to 31.8% in 2006 at a total amount of $30.3 billion. This particular item was followed by car parts and accessories, video equipment, passenger cars, other complete and assembled vehicles, electrical apparatuses and parts, telecommunications equipment, engines and parts, computers and miscellaneous household goods. Of these 10 goods, the last one showed a negative percentage of 6%.
  • Mexico's Imports from US. From all the goods which crossed the borders from US to Mexico, electrical apparatuses and parts were commendable for a 13.2% increase in 2006 with a monetary value of $10 billion. This was followed by vehicle parts and accessories, plastics, computer accessories, semi-conductors, other petroleum products, finished metal shapes, telecommunications equipment, industrial supplies and the last one are industrial machines which recorded a significant difference of 5.4% or $3.9 billion from 2006. Sales wise, records show a booming of trade for other products in both countries.
As evidence to this fact, the following things were noted:
  • Fastest-Growing Mexico Export to US. The sales increase of products from Mexico was attributable mainly to tin which posted an oozing 3535% mark or $11 million. Tin was followed by gold, sugar, natural gas and last but not the least zinc which also posted an impressive $87.3% increase amounting to $470.6 million.
  • Fastest-Growing Mexico Import from US. Mexico on the other hand, has the following to say about the sales of goods which came from US. Tobacco led the top five with its 6822% increase equivalent to $13 million. The other four products were numismatic coins, nuclear fuel materials, other commercial vessels and engines for military aircraft. The last one recorded an appreciable 102.6% mark which amounted to $139.6 million.
These records merely show that foreign trade for both countries have been well established. There must be leverage between these two nations in terms of standing in international business. The evidence could be seen with how well they sold products which even reached a thousand percentages. Seldom do we see this kind of multipliers in any conventional trade relations.

The Treaties for US-MEXICO Trade Relations

There are several treaties as mentioned which have opened better trade signals for US and Mexico. They have started as rivals but in the long run, they have made stabilized their alliance. The following agreements were milestones for both lands:

  • Treaty of Guadalupe Hidalgo. This was a pact which involved peace, friendship, limits and settlements for both nations. This closed the Mexican war of 1847.
  • Gadsden Purchase. This was regarded as the most inquisitive accord to the United States and Mexico. This was more appreciated by the Mexicans because of the monetary aspect. The approval of Mexico lied behind their need to rehabilitate their land and the US welcomed that option.
  • North American Free Trade Agreement. This was a more defined contract for the US-Mexico trade relations. This has benefited all consumers, farmers and ranchers in North America. For Mexico alone, trade restrictions of US exports for crops like corn and dry edible beans as well as dairy products including nonfat dry milk, and high fructose corn syrup were lifted. Mexican limitations of exports to US for sugar and other horticultural products were also removed. In 2007, the US farm and food exports even surpassed the $11.5 billion mark which is the highest one noted since the NAFTA began in 1994.
The Debates on Trade

Despite founding a professional and international relationship, issues sometimes get in the way. These form part of the tricks of the trade. For the US-Mexico pact, the barriers were solved by attacking economic and political stability particularly for that of Mexico. This paved the way for a better means to an end. Mexicans appreciated the help given by the Americans and in the long run they have strengthened their involvement with each other.

The debates on trade, however, extended to hot issues on residency. Influx of illegal immigrants inside the US had been tackled through rallies made by the so-called anti-globalization groups. The problem, however, died down as soon as all legal issues were well-taken care of by both governments. Transparency on this particularly controversy made things visible for both sides.

With the existence of NAFTA, some governing rules somehow affected US-Mexico trade relations. There are certain rules contained in this treaty which says that any good not originating from USA, Mexico or Canada should undergo processing first before they could obtain lower levies on the shipment of these commodities. The United States for instance should adhere to rules on citrus and dairy products while Mexico was advised not to become an export area for processed products from raw materials originating from lands not included in the NAFTA.

The Expectations

The future of US-Mexico foreign trade could be expected to bear abundant fruit. There is no seen negative effect of what they have started except for some governing platforms behind NAFTA. These things were recommended for their own protection.

In 2006, the North American Competitiveness Council was then established by the United States and Mexico with Canada's inclusion in order to fortify the Security and Prosperity Partnership of these three nations. This was called as a secret plot to the future of these three mainstreams. This was carefully planned and is administered by 30 powerful leaders from the countries involved. They are the ones who oversee the functions of the trade between the three nations.

This however, may not pull through as leaders in these lands could change from time to time. The strength of the relationship between US and Mexico then is dependent upon the willingness and apprehension of the political leaders to go on with how their foreign trades started. Needless to say, NAFTA could still be their governing element from this day onwards. No associations which were built in the past or in the upcoming years could guarantee the best things.

This is what the future could bring…no predicted possibilities…no foreseen events…no intellectual rulers. What is yet to come lies upon the real friendship of US and Mexico which stood all the boundaries and the gaps. They themselves could fill in the missing pieces of the puzzle for their future generations to uphold.


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