
Mexican exports to exceeded Mexico’s imports from Latin America and Caribbean islands by $31.8 billion in 2014. Similarly, Mexico achieved a $3.5 billion trading surplus with African countries.
The fact that Mexico earns these trade surpluses indicates Mexican competitive advantages albeit for a specific set of export products highlighted below.
These major product supply advantages provide a silver lining for Mexico’s comparatively small trade deficit during 2014.
Mexico’s trade deficit in 2014 has shrunk by 9.4% since 2010 when its negative balance stood at -$3.2 billion.
Mexico Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Mexico earned the highest trade surpluses in 2014.
- Vehicles : US$50.2 billion (51.6% of all product surpluses)
- Mineral fuels including oil: $8.6 billion (8.8%)
- Gems, precious metals: $6.5 billion (6.7%)
- Furniture, lighting , signs and prefabricated buildings: $5.9 billion (6.1%)
- Vegetables: $5 billion (5.2%)
- Ores, slag and ash: $3.7 billion (3.8%)
- Fruits and nuts: $3.1 billion (3.2%)
- Beverages, spirits and vinegar:$3 billion (3.1%)
- Railways, streetcars and equipment:$2.6 billion (2.7%)
- Optical, technical and medical apparatus: $1.2 billion (1.3%)
The above top 10 product categories represent 92.3% of Mexico’s overall product-category surplus subtotal which amounted to $97.3 billion. For that subtotal, 31 of Mexico’s 97 general product categories delivered a surplus in 2014.
Growth
Mexico enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Railways, streetcars: Up 1,170% since 2010 (US$2.6 billion)
- Salt, sulphur, stone, cement: Up 271.5% ($261.3 million)
- Sugar and sugar confectionery: Up 238.5% ($1051.7 million)
- Ores, slag and ash: Up 205% ($3.7 billion)
- Aircraft, spacecraft: Up 137.6% ($627.7 million)
- Furniture, lighting , signs: Up 88.4% ($5.9 billion)
- Vehicles : Up 85.8% ($50.2 billion)
- Fruits and nuts: Up 85.6% ($3.1 billion)
- Tobacco: Up 47.6% ($180.9 million)
- Ceramic products: Up 42.8% ($478 million)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Mexico to achieve the highest surpluses in its international trade with other countries.
- Crude oil: US$35.9 billion
- Cars: $23.8 billion
- Trucks: $19.6 billion
- TV receivers/monitors/projectors: $13.6 billion
- Computers, optical readers: $11.8 billion
- Tractors: $7.4 billion
- Insulated wire/cable: $5.6 billion
- Gold (unwrought): $4.6 billion
- Seats (excluding barber/dentist chairs): $4.3 billion
- Refrigerators, freezers: $3.7 billion
- Electro-medical equip (e.g. xrays): $3.4 billion
- Railway/streetcar carrier vans, wagons: $2.7 billion
- Phone system devices: $2.3 billion
- Electrical/optical circuit boards, panels: $2.3 billion
- Malt beer: $2.3 billion
Among these, railway/streetcar carrier vans and wagons that are not self-propelled posted the fastest-growing Mexican surplus with a 720.5% gain since 2010. In second place were Mexican trucks up 133.9% while exported tractors moved ahead in value by 119.1%.
MexicoMajor Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Mexico earned the highest trade surpluses in 2014.
- United States: US$122.8 billion (87.5% of Mexican country-specific surpluses)
- Colombia: $3.8 billion (2.7%)
- Venezuela: $1.5 billion (1.1%)
- Guatemala: $1.3 billion (0.9%)
- Spain: $1.2 billion (0.9%)
- Panama: $1 billion (0.7%)
- Belgium: $758.3 million (0.54%)
- Chile: $750.4 million (0.53%)
- Ecuador: $740 million (0.53%)
- Hong Kong: $738.5 million (0.53%)
The above 10 trade partners represent 95.8% of Mexico’s subtotal surplus of $140.5 billion from the 86 geographic entities with which Mexico demonstrated competitive trade advantages.That subtotal excludes the 137 trade partners with which Mexico incurred trade deficits.
Growth
Mexico enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
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- US Minor Outlying Is: Up 4,787% since 2010 (US$2.7 million)
- Uzbekistan: Up 1,955% ($6.2 million)
- Brunei Darussalam: Up 855.8% ($2.5 million)
- Belgium: Up 721.1% ($758.3 million)
- Turks/Caicos Islands: Up 706.9% ($1.5 million)
- Djibouti: Up 544.4% ($0.2 million)
- Cameroon: Up 535.4% ($19.8 million)
- Hong Kong: Up 517.5% ($738.5 million)
- Lithuania: Up 517% ($29.7 million)
- Benin: Up 497.7% ($0.8 million)
From the above list, Mexico showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts.
US
Below are the products that gave Mexico the highest surpluses in its international trade with the United States.
- Crude oil: US$25 billion (20.4% of Mexico’s surplus versus the US)
- Cars: $19.3 billion (15.7%)
- Trucks: $18.2 billion (14.9%)
- Computers, optical readers: $17.3 billion (14.1%)
- TV receivers/monitors/projectors: $12 billion (9.8%)
- Phone system devices: $10.2 billion (8.3%)
- Insulated wire/cable: $7.5 billion (6.1%)
- Tractors: $6.7 billion (5.4%)
- Automobile parts/accessories: $5.6 billion (4.5%)
- Seats (excluding barber/dentist chairs): $4.7 billion (3.8%)
Among these, Mexican trucks had the fastest-growing Mexican surplus with America posting a 61.6% gain. In second place were tractors up 50.8% and insulated wire or cable ahead by 40.9% from 2010 to 2014.
Colombia
Below are the products that gave Mexico the highest surpluses in its international trade with Colombia.
- TV receivers/monitors/projectors: US$660.5 million (17.4% of Mexico’s surplus vs. Colombia)
- Cars: $630.3 million (16.6%)
- Trucks: $441.3 million (11.6%)
- Polyacetal/ether/carbonates: $181.4 million (4.8%)
- Iron or non-alloy steel bars, rods: $175.1 million (4.6%)
- Processed petroleum oils: $167.5 million (4.4%)
- Tractors: $165.5 million (4.4%)
- Iron or steel tubes, pipes: $98.2 million (2.6%)
- Coiled iron or non-alloy steel bars, rods: $97.4 million (2.6%)
- Phone system devices: $96.1 million (2.5%)
Among these, Mexican cars had the fastest-growing Mexican surplus with Colombia posting a 49.8% gain. In second place were polyacetal, ether and carbonate chemicals up 44.1%. Sales amounts for coiled iron or non-alloy steel bars and rods improved by 25.6% from 2010 to 2014.
Venezuela
Below are the products that gave Mexico the highest surpluses in its international trade with Venezuela.
- Medication mixes in dosage: US$194.2 million (13.1% of Mexico’s surplus vs. Venezuela)
- Corn: $151.6 million (10.2%)
- Hair preparations: $112 million (7.6%)
- Flour/meal/starch/malt extract food preparations: $95.4 million (6.4%)
- Miscellaneous iron and steel structures: $68.9 million (4.7%)
- Polyacetal/ether/carbonates: $67.9 million (4.6%)
- Tractors: $58.8 million (4%)
- Sanitary towels, baby napkins/liners: $42.4 million (2.9%)
- Personal toilet/shaving preparations, deodorants: $38.5 million (2.6%)
- Scents used for beverage or industrial manufacturing: $34 million (2.3%)
Among these, Mexican tractors had the fastest-growing Mexican surplus with Venezuela posting a 304.4% gain. In second place were personal toilet/shaving preparations and deodorants up 202.4% and sanitary towels and baby napkins/liners ahead by 123.3% from 2010 to 2014.
See also Mexico’s Top 10 Exports, Highest Value Mexican Export Products,Mexico’s Top 10 Imports and Mexico’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on November 27, 2015
Trade Map, International Trade Centre. Accessed on November 27, 2015
Investopedia, Net Exports Definition. Accessed on November 27, 2015