• PARTNER: For the first time in history, Mexico surpassed China and Canada as the US top trading partner with bilateral trade totaling USD 614.5 billion in 2019, according to US data. This despite a slowdown in exports to the US and a slight contraction of the Mexican economy.
• EFFECTS: With the US-China trade war as a backdrop, Mexican exports grew at a slower pace in 2019 (3.5%) when compared to 2018 (10.6%) but still provided needed relief for Mexico’s economy, which contracted 0.1% last year according to official data.
• POSITIVE: “It had a favorable effect on (Mexico’s) Gross Domestic Product. In fact, the external sector, in this case, exports, was what stopped the fall in GDP. Otherwise, the fall would have been greater”, said Gabriela Siller, chief analyst at Banco Base.
• DEFICIT: At the same time, however, the weakness of the Mexican economy caused a decline in US goods imported to Mexico in 2019 (3.4%). US Census data shows that the US trade deficit with Mexico reached a record of USD 101.8 billion.
