Mexico Manufacturing Industry Invigorates Trade Group Prospects
A recent effort by a group of Texas Congressmen has prompted consideration for Mexico to join the Trans-Pacific Partnership (TPP) trade organization. Even President Obama has commented on the effort, saying the U.S. welcomes Canada and Mexico’s interest in joining the TPP group, which is designed to increase trade and reduce tariffs among member countries. Indeed, the Mexico Manufacturing Industry has played a major role in 2011’s $460 billion trade exchange between the U.S. and Mexico, a 17% increase over the previous year. For their part, the Texas congressman posit that Mexico’s TPP entry will sprout 6 million more jobs over current levels, though others fear U.S. job losses or lower wages could be the result.
NAFTA seems to be a sticking point on both sides of Mexico’s entry into TPP. Some believe that the trade agreement pushed U.S. jobs south of the border into Mexico. However, according to Nelson Balido, President of Border Trade Alliance, “if this hemisphere is going to be competitive….we have to have these agreements (with) more and more plants migrating to Mexico as China becomes less attractive,” adding “if jobs are going to migrate away from the U.S., it makes more sense they go to Mexico,” which he called a ‘friend’. Supporting the case for Mexico’s Manufacturing Industry catalyzing action for TPP inclusion are some impressive facts. Mexico exports to the U.S. increased 21% in 2011 with imports rising 14.6% from 2010. Texas, alone, enjoyed in excess of $316 billion of the trade benefit. Further, Mexico consumes $200 billion in U.S. exports, becoming the 2nd largest for the U.S. export market.