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US Should Engage with Mexico

Editorial, The Economist | December 3, 2012

Despite the worldwide discussion on economic growth in the BRICs, the US might be well-advised to look more south. ++ In the coming years, the US will acknowledge an increasing Mexican influence in imports with "Made in Mexico" having replaced "Made in China". ++ Mexico in US perception still has a bad image due to high violence and drug trafficking, yet the country welcomes foreign investment and features a stable GDP development. ++ Instead of indifference, engagement would be the better diplomatic tool in US policy towards Mexico.

 

 
 
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Zoila  Victoria  Acevedo

Thu, Dec 6th 2012, 10:58

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Reducing the number of imports we receive from China and replacing them with imports from Mexico instead could be a better tool for the United States. According to the CIA World Fact book, China is our largest import partner at 18.4%, while Mexico is currently third at 11.7%. As U.S-China relations become hypersensitive, it is possibly in our best interests to become less dependent on Chinese imports and instead increase them with our neighbor Mexico.
Under the North American Free Trade Agreement trade between Canada, Mexico, and the United States soared. Our partners, Canada and Mexico were the second and third largest import partners to the United States; nonethelesss China who is not a member of NAFTA remains first. Receiving Mexican imports in place of Chinese imports would result in less friction by traveling an extremely shorter distance.
However, Mexico’s high violence due to their drug trafficking raises much concern. On the other hand, by increasing the imports in Mexico the United States could potentially help dismantle the drug problem. By responding to the demand by the United States for an increase in imports there supply would increase, thus potentially creating more jobs and expanding their industry.
Rearranging the United State’s import partner could be a great diplomatic tool against China. By increasing Mexico’s imports to the United States we could help improve their economic stability with an increase in trade, while reducing our imports with the second largest economy in the world China.
 

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