Dynamics in global trade: The Mexican impact in USA economy.  

Charlie Chaplin Straddling the U.S.-Mexico Border – The Pilgrim (1923), source: youtube.com

A reported from 2023 about an 4.6% increase in Mexican exports, resulting in a 20% decrease in Chinese exports compared to the previous year. 

Mexico is part of the T-MEC free trade agreement along with Canada and the US, and they are on a fertile but secure path, far from China.

Undoubtedly, this trade privilege translates into greater economic growth and job creation, especially in companies that export to their neighbor with added value, particularly in industrial sectors from automotive to chemical industries.

The significant increase in Mexican exports can only be understood in the face of China’s major decline. If Mexico had greater capacity for sophisticated and suitable factories, the increase would be monumental.

While there are tensions, the relationship between China and the US is a fact. Industrial chains remain strong and connected, creating more dependence on each other. Even Mexico, which buys materials from China to then sell to the US, is affected.

There is momentum to create greater infrastructure to allow for the continuous development of Mexico, including a better electrical grid along with improvements in working conditions.

After 16 years on the podium, China demonstrates that Mexico also has what it takes. One of the main causes of this phenomenon is the trade war between the US and China. For some time now, we have seen how relations between the two world powers have been enhanced and are far from reaching a consensus. From previous attacks in the speeches of various officials to threats and tense relations between China and the United States, these two spare no effort. The tense relationship intensified with former President Donald Trump, who in his speeches maintained particular hostility against China, increasing tariffs towards their destination, which caused a drastic 20% drop in 2023.

From Beijing, the advantages are evident in a win-win cooperation, where the advantage is clear for this country over the West but it is difficult to maintain due to its decades-long distrust.

When Biden took office, there was no substantial change in their relations. The self-interest of these two nations constantly clashes on different issues. Decoupling intensifies, along with the naive idea that these two will reach a mutual agreement for a close working relationship together. Mexico is now intensifying its relations with the US, as evidenced by the 4.6% increase in exports.

Latin American markets received positive evaluations for their economies in 2023. This overview of the economic dynamics between Mexico, China, and the United States, also touches upon the importance of infrastructure development and highlights the shifting dynamics in global trade. 

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