Country Profile- Mexico
Mexico is a country located between the USA and Central America. It is the 10th most populated country in the world and is home to over 130 mn people. Mexico has an Economic Freedom score of 64.8, putting the country in the ‘moderately free’ category with a rank of 63rd for 2018. World Bank has also given the country a Doing Business rank of 49th, with a Distance to Frontier of 72.27. Moreover, they have high scores for Getting Credit, Resolving Insolvency, and Enforcing Contracts. In 2017, Mexico reported a GDP of $1,149bn, and a growth of 1.1% from 2016-17.
These statistics make it an emerging market for countries like India to enter and exploit. The added strained relationship with the USA is a major benefit for other countries since it opens up the door to establish stronger trade relationships.
Mexico imported over $420bn in value last year, making it one of the bigger importers. This was approximately 2.4% of the world’s imports, which were estimated at about $17.8tn. NAFTA countries (mainly USA) is the main source of imports for Mexico and in 2017, 49% of their imports came from NAFTA countries (46% from USA). China is the second biggest supplier and provided 17% of their imports.
Mexico also exported over $409mn in value. Exports primarily go to NAFTA as well, and 83% of all exports went to Canada and USA. Germany is the third biggest export destination after the USA and Canada.
Mexico’s Merchandise Trade with the World
Mexico’s imports and exports with the world have been increasing at a steady rate since 2009. The sharp decrease in 2009 was primarily due to the global financial crisis. Ever since 2008, imports have exceeded exports, with the largest Trade Deficit of $17.3bn coming in 2008. In more recent times, the biggest deficit came in 2015 ($14.5bn). The biggest deficit with a country was China ($67bn) in 2017. Since 2015, their deficits have been somewhat constant at around $10bn-$14bn mark.
Mexico’s Merchandise Trade with India
Merchandise Trade between India and Mexico has been very irregular and inconsistent over the past 10 years. India only experienced a Trade Deficit with Mexico in 2008, and 2012-13. The biggest deficit for India ($1.1bn) came in 2013. Meanwhile, the biggest Surplus of over $2.2bn came in 2015.
Mexico’s Exports to the World
Mexico’s exports to world were valued at $409bn last year. Exports mainly went to USA. Their biggest imports at HS-6 digit level were Motor Cars. They made up almost 9% of exports. Other big exports include Petroleum Oils (5%), Processing Units (3%), Motor Vehicles (4%), and Reception Machines (4%).
Mexico’s Imports from the World
Mexico spent over $420bn on imports last year. Their imports mainly came from the USA and China. Main exports were Light Oil and Medium Oil, contributing 4% each. Electronically Integrated Circuits and Motor Cars made up 2% each. Imports have consistently exceeded exports since 2008.
India’s Exports to Mexico
India’s overall exports to Mexico in 2017 were US$ 3.7 Billion. Its top three exports at HS-6 Digit level were Motor Cars and Vehicles (US$ 1.7 Billion) and Part of Motor Vehicles (US$ 124 Million). The growth rate in export of Indian Motorcycles and Parts of Motor Vehicles grew at a seemingly steady rate. The top Agri item exported by India in 2017 to Mexico was Fruits of the Genus Capsicum (US$ 20 Million).
India’s Imports from Mexico
India’s total imports from Mexico in 2017 were US $3.5Billion. India’s import basket vis-à-vis Mexico was dominated by Crude Petroleum Oils (US$2.4 Billion), followed by Machines for the reception, conversion and transmission or regeneration of voice & images (US$325.6 Million). India mainly imported Non- Agri or Non-Food items from Mexico. Among the top imports of India, the import of Gold registered a steady growth on a yearly basis.