Mexican Exports to Canada in 2008
Mexico’s Exported Cell Phones and Gold Up by Triple Digits
Oct 16, 2009
During 2008, Mexico exported US$16.8 billion worth of goods to Canada. Also known as a holiday paradise, Mexico is Canada’s third-largest supplier of imported products behind and China. Mexico, Canada and the U.S. are parties to the North America Free Trade Agreement (NAFTA) – a strategic regional trade alliance that encourages trade relations among the 3 countries.
Mexico’s $16.8 billion in exports represents a 5.1% increase over the $15.98 billion in shipments to Canada during 2007.
This analysis lists Mexico’s highest dollar-value, fastest-growing and most rapidly declining export products to Canada from US. While export product descriptions are based on the official Canada Border Services Agency's online customs tariff manual, terms have been translated into plain language to make the text more readable.
Top 15 Exports from Mexico
The following 15 product categories represent the leading Mexican exports to Canada by dollar value in 2008. The international tariff classification code is shown within brackets for each export.
Of the top 15 Mexican exports to Canada, 11 products are from the automotive industry. Seven of the vehicle-related Mexican exports were up in 2008 from 7.1% to 90%, while 4 declined from 50.6% for transmissions to 14.8% for wiring sets.
- TV receivers including Internet set-top boxes (852872) ... US$1.9 billion, up 17.1% from 2007 (25.9% of Mexican exports)
- Small passenger cars (code 870323) … US$1.4 billion, up 11.4% from 2007 (16.9%)
- Crude oil (270900) … $901.7 million, up 36.1% (12.3%)
- Wiring sets including ignition for automobiles, aircraft or ships (854430) … $567.3 million, down 14.8% (7.7%)
- Parts for seats excluding medical furniture (940190) … $457.1 million, down 15.5% (6.2%)
- Trucks (870431) … $443.9 million, up 21.9% (6%)
- Computer processing units (847150) … $424 million, up 6.8% (5.8%)
- Cell phones (851712) ... $367.8 million, up 201.1% (5%)
- Medium and large-size cars (870324) … $318 million, up 90% (4.3%)
- Other diesel or semi-diesel trucks up to 5 tons (870421) … $294.4 million, down 47.6% (4%)
- Non-monetary gold (710812) … $291 million, up 112.6% (4%)
- Printed circuit assemblies (851770) ... $225.6 million, down 46.8% (3.1%)
- Modems, routers and switches (851762) ... $212 million, up 18.4% (2.9%)
- Motor vehicle engine parts (840991) … $208.8 million, down 35.4% (2.8%)
- TV receivers independent of video display screen (852871) … $187.7 million, up 29.1% (2.6%).
Fastest-Growing Mexican Exports
High-tech products such as cell phones, DVDs and modems account for 5 of Mexico’s top 10 growth exports to Canada in 2008. Other expanding Mexican exports include gold, automotive parts and almost $1 billion worth of crude oil.
- Cell phones (851712) ... US$367.8 million, up 201.1% from 2007
- Non-monetary gold (710812) … $291 million, up 112.6%
- Medium and large-size cars (870324) … $318 million, up 90%
- Optical media including blank and recorded DVD discs (852340) … $122.5 million, up 36.8%
- Crude oil (270900) … $901.7 million, up 36.1%
- TV receivers independent of video display screen (852871) … $187.7 million, up 29.1%
- Motor vehicle engines (840734) … $154 million, up 26.4%
- Motor vehicle brakes (870830) … $113.7 million, up 20.5%
- Modems, routers and switches (851762) ... $212 million, up 18.4%
- TV receivers including Internet set-top boxes (852872) ... $1.9 billion, up 17.1%.
Fastest-Declining Exports from Mexico
Three automotive product classifications top Mexico’s list of major declining exports in 2008. Mexican beer showed the mildest percentage drop.
- Motor vehicle transmissions (870840) … US$108.3 million, down 50.6% from 2007
- Other diesel or semi-diesel trucks up to 5 tons (870421) … $294.4 million, down 47.6%
- Motor vehicle engine parts (840991) … $208.8 million, down 35.4%
- Parts for seats excluding medical furniture (940190) … $457.1 million, down 15.5%
- Automatic regulators excluding thermostats (903289) … $142.7 million, down 5.8%
- Malt beer (220300) … $112.9 million, down 2.9%
While Mexico felt the effects of the severe global slowdown that started in 2008, low labor costs may have insulated Mexico’s developing economy from a paralyzing meltdown. For example, parts of the Mexican automotive industry recorded drastic slowdowns yet Mexico’s leading automotive export of small cars actually posted an 11.4% gain.
In addition, Mexico’s major exports to Canada are diversified. With products ranging from high-tech cell phones and automobile airbags to tomatoes and malt beer, Mexico is positioned to adapt its output to changes in economic global demand during the global recession.
Sources: Industry Canada's Trade Data Online, based on Statistics Canada reports as of September 1, 2009 and Canada Border Services Agency's online customs tariff manual.
 |
 |
 |
 |
 |
