U.S. goods and services trade with Mexico totaled an estimated $671.0 billion in 2018. Exports were $299.1 billion; imports were $371.9 billion. The U.S. goods and services trade deficit with Mexico was $72.7 billion in 2018.
However, the international shipment of non-U.S. goods through the United States can make standard measures of bilateral trade balances potentially misleading. For example, it is common for goods to be shipped through regional trade hubs without further processing before final shipment to their ultimate destination. This can be seen in data reported by the United States’ two largest trading partners, Canada and Mexico.
The U.S. data report a $19.8 billion goods deficit with Canada in 2018, and a $81.5 billion goods deficit with Mexico. Both countries, however, reported substantially larger U.S. goods surpluses in the same relationship. In 2018, Canada reported an estimated $103.2 billion surplus, and Mexico an estimated $128.5 billion surplus.
This reflects the large role of re-exported goods originating in other countries (or originating in one NAFTA partner, arriving in the United States, and then returned or re-exported to the other partner without substantial transformation). U.S. statistics count goods coming into the U.S. customs territory from third countries and being exported to our trading partners, without substantial transformation, as exports from the United States. Canada and Mexico, however, count these re-exported goods as imports from the actual country of origin. In the same way, Canadian and Mexican export data may include re-exported products originating in other countries as part of their exports to the United States, whereas U.S. data count these products as imports from the country of origin. These counting methods make each country’s bilateral balance data consistent with its overall balance, but yield large discrepancies in national measures of bilateral balance. It is likely that a measure of the U.S. trade deficit with Canada and Mexico excluding re-exports in all accounts would be somewhere in between the values calculated by the United States and by our country trading partners.
Mexico is currently our 3rd largest goods trading partner with $611.5 billion in total (two way) goods trade during 2018. Goods exports totaled $265.0 billion; goods imports totaled $346.5 billion. The U.S. goods trade deficit with Mexico was $81.5 billion in 2018.
Trade in services with Mexico (exports and imports) totaled an estimated $59.4 billion in 2018. Services exports were $34.1 billion; services imports were $25.3 billion. The U.S. services trade surplus with Mexico was $8.8 billion in 2018.
According to the Department of Commerce, U.S. exports of Goods and Services to Mexico supported an estimated 1.2 million jobs in 2015 (latest data available) (968 thousand supported by goods exports and 201 thousand supported by services exports).
- Mexico was the United States’ 2nd largest goods export market in 2018.
- U.S. goods exports to Mexico in 2018 were $265.0 billion, up 8.9% ($21.7 billion) from 2017 and up 75.2% from 2008. U.S. exports to Mexico are up 537% from 1993 (pre-NAFTA). U.S. exports to Mexico account for 15.9% of overall U.S. exports in 2018.
- The top export categories (2-digit HS) in 2018 were: machinery ($46 billion), electrical machinery ($43 billion), mineral fuels ($34 billion), vehicles ($22 billion), and plastics ($18 billion).
- U.S. total exports of agricultural products to Mexico totaled $20 billion in 2018, our 2nd largest agricultural export market. Leading domestic export categories include: corn ($3.1 billion), soybeans ($1.7 billion), dairy products ($1.4 billion), pork & pork products ($1.3 billion), and beef & beef products ($1.1 billion).
- U.S. exports of services to Mexico were an estimated $34.1 billion in 2018, 3.8% ($1.2 billion) more than 2017, and 30.1% greater than 2008 levels. It was up roughly 228% from 1993 (pre-NAFTA). Leading services exports from the U.S. to Mexico were in the travel, transport, and intellectual property (computer software, industrial processes) sectors.
- Mexico was the United States’ 2nd largest supplier of goods imports in 2018.
- U.S. goods imports from Mexico totaled $346.5 billion in 2018, up 10.3% ($32.3 billion) from 2017, and up 60.5% from 2008. U.S. imports from Mexico are up 768% from 1993 (pre-NAFTA). U.S. imports from Mexico account for 13.6% of overall U.S. imports in 2018.
- The top import categories (2-digit HS) in 2018 were: vehicles ($93 billion), electrical machinery ($64 billion), machinery ($63 billion), mineral fuels ($16 billion), and optical and medical instruments ($15 billion).
- U.S. total imports of agricultural products from Mexico totaled $26 billion in 2018, our largest supplier of agricultural imports. Leading categories include: fresh vegetables ($5.9 billion), other fresh fruit ($5.8 billion), wine and beer ($3.6 billion), snack foods ($2.2 billion), and processed fruit & vegetables ($1.7 billion).
- U.S. imports of services from Mexico were an estimated $25.3 billion in 2018, 0.6% ($164 million) less than 2017, but 59.3% greater than 2008 levels. It was up roughly 241% from 1993 (pre-NAFTA). Leading services imports from Mexico to the U.S. were in the travel, transport, and technical and other services sectors.
- The U.S. goods trade deficit with Mexico was $81.5 billion in 2018, a 14.9% increase ($10.6 billion) over 2017.
- The United States has a services trade surplus of an estimated $8.8 billion with Mexico in 2018, up 19.1% from 2017.
- U.S. foreign direct investment (FDI) in Mexico (stock) was $109.7 billion in 2017, a 8.9% increase from 2016. U.S. direct investment in Mexico is led by manufacturing, nonbank holding companies, and finance and insurance.
- Mexico’s FDI in the United States (stock) was $18.0 billion in 2017, up 4.7% from 2016. Mexico’s direct investment in the U.S. is led by manufacturing, wholesale trade, and real estate.
- Sales of services in Mexico by majority U.S.-owned affiliates were $40.9 billion in 2016 (latest data available), while sales of services in the United States by majority Mexico-owned firms were $9.1 billion.
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