Consul General Julian Adem was instrumental in opening a new consulate in Milwaukee, which brings legal and related services to Mexicans residing in Wisconsin. Consul Adem documented how strong the U.S. – Mexico relationship has become under the current NAFTA agreement. He warned that threats to this treaty could seriously damage the economies of both countries. Mexico has built a solid framework for macroeconomic stability in the past two decades and now has a $1.2 trillion economy, making it the 15th largest world economy. The country represents a $125 million consumer market, with 60% representing the middle class. Mexico is the 10th largest world exporter and 1st in Latin America. Its total exports are $374 billion, and its total imports are $387 billion.
Regarding the U.S. – Mexico trade relationship, Mexico is the U.S.’s third-largest trading partner. Since 1994, trade between the two countries has multiplied six-fold. $1.5 billion dollars in products are bilaterally traded each day. Mexico is the U.S.’s second-largest export market with exports reaching $231 billion in 2016. U.S. imports from Mexico were $294 billion in 2016. A large industry in Mexico is auto parts, primarily for light vehicles. Most of these are American-owned companies. Mexico also manufactures electronic and electrical equipment, home appliances and flat-screen TVs. Many of the goods made in Mexico have components made in the U.S. regarding energy, Mexico exports crude oil to the U.S. and imports gasoline.
Trade between Mexico and Wisconsin has also increased dramatically since 1994. Today, exports from Wisconsin exceed imports. Dairy products are a major import from Wisconsin, as are hogs and poultry. It is estimated that 96,000 Wisconsin jobs result from products sold to Mexico. In April, negotiations will intensify to develop NAFTA 2.0. It would be beneficial if an agreement could be reached by July before a new Mexican President is installed. NAFTA 2.0 should be designed to encourage competition, provide new opportunities and strengthen the energy sector. Challenges to NAFTA are expanding benefits to all states, streamlining regional integration and opening the energy sector to more opportunities.
If you missed our meeting this week, you can watch the video here.