Mexico remained the top US trade partner in July, with $65.3 billion in trade, a 0.24% year-over-year increase. It was the seventh time in the past eight months that Mexico ranked No. 1 in monthly international commerce with the US.
According to Mexico News Daily, “This is the first time since Q1 2009 that a country other than China was the US’s top trade partner, other than the pandemic year of 2020 when Mexico took the top spot.”
Trade between the United States and Mexico reached US $263 billion in the first four months of this year, further solidifying Mexico's position as the top trading partner of the United States.
A study by the Federal Reserve Bank of Dallas found that this accounted for 15.4% of the commodities the United States exported and imported during the course of the four-month period, surpassing both China and Canada, each of which had a 15.2% share.
A report by Freight Waves claims that nearshoring of manufacturing to Mexico is helping to boost trade with the US. The manufacturing sector in Mexico has already attracted almost $10 billion in foreign investments in the first eight months of 2023, compared to $13.7 billion in all of 2022.
However, businesses are witnessing some challenges as nearshoring efforts continue to grow in Mexico. The demand for cross-border trucking services continues to climb, but they are affected by rising fuel costs, driver shortages, cargo theft, and the dollar-peso conversion depreciation, says Freight Waves.
In addition, rates for shipments crossing the Texas-Mexico border averaged higher than the US domestic average. Mexican interest rates are also double those in the US, which is discouraging carriers from expanding their fleets.
