Texas and It’s Trade with Mexico

Trade between US and Mexico

Over US$248 billion dollars worth of trade between the U.S. and Mexico were reported for 2000, as expected.

Mexico is the second largest trading partner for the United States as an importer and exporter.  This impending jump in trade rank for Mexico is the latest example of NAFTA’s remarkable contribution to Mexico-U.S. trade.

Texas Exports to Mexico

Texas total exports to Mexico in 2000 were estimated at  US$57.1 billion, accounting for 47% of the state’s total exports.  Mexican exports to Texas for the same period were estimated at US$45 billion, one third of Mexican total exports to the U.S.  Mexico continues to be the state’s most important customer. Texas is the largest U.S. state in exports to Mexico.                Export estimates from Texas to Mexico for 2001 were expected to reach US$57 billion, and Mexican exports to Texas for the same period were expected to be US$49 billion, again representing one third of Mexican total exports to the U.S..

MAQUILADORA AND PITEX PROGRAMS

These programs have evolved from the original in-bond concept to encompass a broad package of export promotion incentives and to comply with international agreements.  PITEX allows temporary production of goods for export by companies that comply with all of the Mexican taxation laws.   PITEX supports export-oriented industry through duty exemptions for imports used to create exported products.  Goods can also be shifted to the local market by paying duties and taxes as in the maquiladora program.  Mexico extends similar benefits under related export promotion programs known as ALTEX and ECEX.  As a footnote, it is important to remember that all raw materials originating from any of the three NAFTA countries pay no duties.  But all raw materials originating from any other country, will pay a differential from the country that comes in, to the country that goes out.

Related sites in both English and Spanish

  1. http://www.gob.mx/promexico
  2. http://www.bancomext.com/en/