Trade between United States and Mexico

Trade between United States and Mexico

Trade between Mexico and the United States within the framework consists of two treaties of this network of trade agreements, NAFTA and the FTAA. Currently this relationship faces several challenges. NAFTA was conceived as an area of opportunity and benefits given the level of business concentration that already exists, can not easily expand. Moreover, the FTAA and the growing U.S. concern for their safety are perceived as a threat to the exchange. However, the real threats are not in the external schema configuration foreign trade of Mexico, but in the inside problems preventing transform these alleged threats into opportunities.

The FTAA initiative is the most ambitious regional trade liberalization on the continent both by the number of participants and the issues it raises. The agenda covers a number of subjects with high complexity and the negotiation process becomes even more complicated when you consider that negotiating deadlines are very small and that each country should integrate nine negotiating groups. United States is the country that sets the pace of progress in the FTAA negotiations while the Mercosur, underpinned by Brazil, has a limited counterweight to such leadership. Mexico and Canada, meanwhile, maintained a reserve position with respect to the progress of this process since they perceive as contrary to their interests erosion of their trade preferences with the United States from extending the same to other American countries. After September 11, the United States turn to the issues surrounding their safety, the FTAA has been stalled. The agreements that have been finalized are lower, because the most that can be expected as the end result is a highly diluted and agree with many exceptions, even in the unlikely event that Brazil and the United States could bridge their differences. Thus, the effect of an agreement so little operant be almost zero for both Mexico and the United States.

Moreover, NAFTA has given a great impetus to trade and investment in North America and no doubt has become strategically important for Mexican development plans. From the perspective of Mexico, the results of NAFTA have many nuances. NAFTA has had positive aspects such as increasing exports and investment flows, built an institutional framework in trade with Canada and the United States, and provided certainty about the economic policy that the country will continue. Among the negative items, which highlights the increased economic dependence of Mexico to the United States, increasing the vulnerability of the first (Ortiz Mena, 2004).

United States is the most important trading partner in the region, so their presence largely structure, the existing network of trade agreements. Its commercial power is greater as plaintiff as a bidder and counterweight are most nations of the Southern Cone. In between these two poles is most of the nations of the Andean Community and the Central American countries.

The trade relationship between Mexico

...