Photo: Pexels.
The flow of goods from China to Mexico continues its steady growth, positioning itself as one of the fastest-expanding trade routes worldwide, according to a report from the European data analysis company Xeneta.
According to Xeneta’s data, container demand for trade along this route saw an increase of 59.7% in January compared to the same month the previous year. The company’s chief analyst, Peter Sand, emphasized that this growth reflects a sustained upward trend, with an annual increase of 34.8% in 2023, compared to just 3.5% recorded in 2022.
Xeneta’s analysis also unveiled a dynamic shift in the global trade landscape. While in recent years the United States has imposed tariffs and restrictions on Chinese products to encourage the relocation of companies out of China, Mexico has emerged as an attractive alternative. In addition to offering comparable wages to those in China, Mexico benefits from its proximity to the United States, and its participation in the USMCA – the trade partnership between Mexico, Canada and the U.S.
However, this growth is not without challenges. U.S. officials have expressed concern about Mexico being used as a “backdoor” by China to evade tariffs. Mexico’s Confederation of Industrial Chambers (Concamin) warned of a significant trade deficit between Mexico and China, with an increase in the gap between exports from Mexico and imports from China. The national textile and footwear sectors are among the most affected by this imbalance.
Nonetheless, China Southern Airlines has announced its first direct flight to Mexico City, indicating increasing commercial activity between the two countries.
Xeneta’s analysis also suggested that part of the increase in trade between China and Mexico could be related to evading tariffs imposed by the United States as part of the ongoing trade disputes. In response, Mexico has amended its import tax law, imposing tariffs on products from countries with which it does not have free trade agreements, including China, aiming to protect its domestic industry.
The surge in trade between China and Mexico reflects a significant change in the global economic landscape, with implications for both bilateral trade relations and overall global trade dynamics.
Main source:
Xinhua (18 de marzo, 2024). https://spanish.news.cn/20240319/3687c30972fe4e5386dc750e8e32a256/c.html
Other related sources:
Massive increase in container shipping imports from China into Mexico amid ongoing US trade war | Xeneta (2024, Marzo 15). https://www.xeneta.com/news/massive-increase-in-container-shipping-imports-from-china-into-mexico-amid-ongoing-us-trade-war