Mexico's exports rose 44% in July — Mexico News Daily
In Mexico, export revenues reached US$81 billion in July, up 44%. From the start of the year through July, exports increased by 27.7%, while last year the country set a record at US$665 billion, Mexico News Daily reports.
According to the publication, Mexico became the largest exporter to the United States, surpassing Canada and China. At the same time, the article's author, Mexico News Daily CEO Travis Bembenek, noted that export growth is concentrated mainly in one sector: electrical and electronic equipment and household appliances.
Electronics overtook the automotive industry
Exports in this category rose by 134% in July and for the first time exceeded shipments of automobiles and auto components, which had been Mexico's main source of export revenue for decades. At the same time, automotive exports since the start of the year remained at approximately the previous level, while oil exports declined.
Imports also grew significantly: over seven months, they increased by 25.6%, and by 45.7% in July. That month, imports exceeded exports, and Mexico recorded a rare trade deficit.
More current news is available on the UA.News Telegram channel Telegram.
Dependence on imported components
Purchases of goods from Taiwan increased particularly noticeably. In the first half of the year, their value approached US$40 billion, compared with US$14 billion in the same period of the previous year.
According to an estimate cited by Bembenek, Mexican value added accounts for less than 3% of the value of exported electronics products. In the automotive industry, this figure is significantly higher thanks to engineering work, design, parts manufacturing, and assembly.
The author links the possibility of increasing local content in electronics to negotiations between Mexico and the United States on an updated United States-Mexico-Canada Agreement. Among the potential areas, he named strengthening requirements for local content and value added in electronics manufacturing.
