• HISTORIC: Trade between the US and Mexico suffered its sharpest fall since at least 1986 as both countries confronted the novel coronavirus pandemic in May, new US figures show. The decline in bilateral trade in May amounted to 53.6% when compared to the same month last year.
• EXCHANGE: Even when trade across the US-Mexico border continued to flow despite restrictions to non-essential travel, the nominal value of exports from both countries to each others’ markets during May fell to levels not seen since the global financial crisis in 2009.
• SHUTDOWN: According to the US figures, the value of Mexican exports to the US totaled US $14.9 billion in May while the value of US exports to Mexico amounted to US $10.4 billion. A large part of the decline in Mexican exports to the US can be traced back to the shutdown of the auto industry.
• TREATY: The new data showing nosedive in trade between both countries in May (US $25.4 billion) occurs as the new US, Mexico and Canada trade agreement (USMCA) entered into force on July 1. Since the formation of the North American trading block in 1994 trade had consistently increased.
