How Mexico became the US' biggest trading partner

Mexico has surpassed China as America's top trading partner this year. The shift is driven by supply chain issues, "nearshoring," and geopolitical tension. Mexico's growth in industries such as automobiles and computer parts has contributed to this trend. However, there are concerns about Mexico's infrastructure to handle the rapid growth. This shift is beneficial for Mexico as it brings more revenue and jobs, which may reduce migration. Texas, as the No. 1 exporter to Mexico, stands to benefit significantly. The long-term sustainability of this arrangement remains uncertain.

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Frequently Asked Questions

Q: How did Mexico become the US' biggest trading partner?

A: Mexico became the US' biggest trading partner by surpassing China in terms of trade volume. It achieved this milestone at the beginning of 2023. The total bilateral trade between the US and Mexico was $263 billion. This shift is attributed to factors such as supply chain issues, "nearshoring", and geopolitical tension. Mexico has been increasing its share of US trade over the past few years. For more information, you can refer to the Texas Public Radio article titled "How Mexico became the US' biggest trading partner" (source: TPR) or the Axios article titled "Mexico beats China as U.S. top trading partner" (source: Axios).