America’s trade deficit with Mexico shrank by US$17 billion to $47.5 billion in 2009, according to U.S. Census Bureau statistics.
That figure represents a 26.2% improvement over America’s $64.4 billion trade deficit with Mexico during 2008. American imports of Mexican goods fell to $176.5 billion in 2009 – an 18.2% drop from the $215.9 billion worth of Mexican exports sold to the U.S. one year earlier.
Mexico’s imports from America were down 14.9% to $129 billion from $151.5 billion during the prior year.
U.S. Export Trading Advantages by Product
U.S. exports to Mexico outpaced comparable Mexican imports sold to America in 3,600 of the total 4,822 product categories that the 2 nations traded during 2009. These categories are at the 6-digit harmonized tariff code level.
When a country’s exports exceed imports exchanged with another nation, that country has established a competitive trade advantage over its partner. The U.S. posted competitive advantages in 73.7% of the product categories traded with Mexico.
Competitive advantages are often symptoms of even more underlying business opportunities. Products where the U.S. has already proven to be profitable in Mexico trading lend themselves to further cash generating ventures.
Below are the top 12 American export goods with their corresponding trade surpluses over comparable Mexican imports during 2009.
Top 12 U.S. Export Goods to Mexico Generating Surpluses
Computer technology products are prominent among America’s most profitable exports to Mexico in 2009. Shown within brackets are the first 6 digits from the harmonized tariff system code for each product category.
- Computer parts and accessories (code 847330) … US$3.4 billion trade surplus (up 20.4% from 2008)
- Light petroleum oils (271011) … $3.1 billion (22.6%)
- Computer processors and controllers (854231) … $1.7 billion (up 11.6%)
- Aircraft and spacecraft including parts (880000) … $1.4 billion (down 21%)
- Corn (100590) … $1.37 billion (down 40%)
- Soybeans (120100) … $1.35 billion (down 24.4%)
- Electronic integrated circuits (854239) … $1.3 billion (up 1.4%)
- Printed circuit assemblies (852990) … $1 billion (up 20.9%)
- TV video games (950410) … $972.8 million (down 23.6%)
- Vehicle parts and accessories (870899) … $936.6 million (up 1,529%)
- Para-xylene organic chemicals (290243) … $903.5 million (up 22.5%)
- Parts for electricity control or distribution (853890) … $752.3 million (down 25%).
Profitable U.S. Export Trade Opportunities
According to the CIA World Factbook, 92.7% of Mexicans speak Spanish only. Rather than a communication barrier, that fact may well be a powerful Mexico trade opportunity for American firms that develop voice-translation products from Spanish to English, and from English to Spanish.
America has strong competitive advantages over Mexico in computer hardware and software. Can U.S. computer companies bundle computer packages to address the specific needs of Mexican importers? American technological products could provide strategic opportunities to cross-sell a wide range of other U.S. exports as America becomes the preferred provider for export technology solutions.
These opportunities range from online computer training, specialized software applications like those required for Mexican tax reporting, and customized programming for Mexican government policies and procedures.
Even food products like corn and soybeans lend themselves to specialized American export innovations. Can corn and soybean products be bundled for import into Mexico? An American entrepreneur could also develop corn and soybean recipe books that specifically target Mexican consumers.
Communication materials could explain how to maximize the value of corn and soybean purchases. One approach is to limit purchases to family-sized portions. This would prevent unnecessary waste of corn or soybean products not eaten by published spoilage dates.
See also Top US Trade Opportunities by Country and by Product.
Sources: U.S. Census Bureau Foreign Trade Statistics, United States International Trade Commission’s Interactive Tariff and Trade DataWeb and United States International Trade Commission Harmonized Tariff Schedule.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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