Mexico's Trade Boom: A Closer Look

Mexico is seeing a significant increase in trade with the United States, especially since the United States-Mexico-Canada Agreement (USMCA) came into force. This agreement allows products made in Mexico using foreign materials to be labeled as "Made in Mexico" and avoid certain tariffs. Companies like Zekelman Industries are feeling the heat, with job losses due to what they believe is unfair competition. Experts point out that this isn't necessarily a loophole but rather a legal use of the agreement. Chinese and European companies are setting up shop in Mexico to take advantage of this, leading to a boom in cross-border trucking. The Biden administration has adjusted tariffs to address concerns about Mexico becoming a backdoor for Chinese goods. Despite political threats, trade between Mexico and the U. S. continues to grow at a rapid pace.