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U.S.-Mexico Economic Relations: Trends, Issues, and Implications
M. Angeles Villareal (au)
Mexico has a population of about 110 million people making it the most populous Spanish-speaking country in the world and the third most populous country in the Western Hemisphere. Based on a GDP of $1.0 trillion in 2008 (about 7% of U.S. GDP), Mexico has a free market economy with a strong export sector. The U.S. and Mexico have strong economic ties. An important feature of the relationship is the North American Free Trade Agreement (NAFTA), which has been in effect since 1994. In terms of total trade, Mexico is the U.S.’ third largest trading partner, while the U.S. ranks first among Mexico’s trading partners. In U.S. imports, Mexico ranks third among U.S. trading partners, after China and Canada, while in exports Mexico ranks second, after Canada. The U.S. is the largest source of foreign direct investment (FDI) in Mexico. Contents of this report: (I) Introduction; (II) U.S.-Mexico Economic Trends: U.S.-Mexico Merchandise Trade; Mexico-U.S. Bilateral Foreign Direct Investmen; Mexico’s Export-Oriented Assembly; Worker Remittances to Mexico; Security and Prosperity Partnership of North America; (III) The Mexican Economy; Economic Reform and the 1995 Currency Crisis; Current Economic Conditions; Mexico’s Regional Free Trade Agreements; (IV) NAFTA and the U.S.-Mexico Economic Relationship; Effects on the U.S. Economy; Effects on the Mexican Economy; (V) Major Issues in U.S.-Mexico Trade Relations; Trucking; Other Trade Issues; (VI) Policy Issues. Figures and tables.
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