Mexico gains ground in high-tech exports to the US

Mexico registered a 23.7% year-on-year increase in its exports of advanced technology products to the United States from January to September 2022, to 60.902 million dollars, according to data from the Department of Commerce.

The basket of this type of product includes advanced materials, electronics, aerospace, biotechnology, flexible manufacturing, information and communication, life sciences, nuclear technology, weapons, and optoelectronics.

Total US imports of these goods were 465.478 million dollars in the first nine months of the current year, which represents an annual growth of 17.8%.

Consequently, Mexico gained a share in total US imports of the products in question, going from 12.5% ​​from January to September 2021 to 13.1% in the same period of 2022.

In fact, if this proportion is maintained for the whole year, this would be the first time that Mexico exceeds a market share greater than 13 percent.

In the last decade, Mexico’s coverage has fluctuated between 10.8 and 12.5%, ranking as the second external provider to the United States of this classification of goods.

Above Mexico is China, which, however, reduced its market share, from 26.1% from January to September 2021 to 24.3% in the same period of 2022.

Mexico is in a favorable situation to attract investment due to the relocation of industrial plants from Asia to the North American subcontinent, due to changes in global supply chains derived from the trade war between the United States and China, the Covid-19 pandemic and the war between Russia and Ukraine.

From 2012 to 2021, China’s share of total imports of high-tech products to the United States has ranged for full years from 27.0 to 37.8 percent.

According to a World Bank report, some manufacturing subsectors of Mexico’s private sector showed rapid growth rates thanks to trade liberalization.

Transportation equipment production grew at an average rate of 5.6% in the last 20 years, as Mexico joined regional and global value chains in the automotive and aerospace subsectors.

Other technology manufacturing subsectors, such as electronics and information technology, have also become central elements of global value chains and growth drivers for the industry in Mexico.

However, other manufacturing industries, especially the most labor-intensive ones such as wood, textiles, and clothing, have declined in importance.

Mexico has accepted the Protocol Amending the Agreement on Trade Related Aspects of Intellectual Property Rights.

But the country is not a party to the Agreement on Government Procurement or the Agreement on Trade in Civil Aircraft, nor does it have observer status before the Committee on Government Procurement and the Committee on Trade in Civil Aircraft. It is also not a party to the Information Technology Agreement.

roberto.morales@eleconomista.mx