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TrustM3ImAnEngineer t1_jdhj8xn wrote

I’m assuming Texas may be the crossing point but the final destination of the goods has to be all over the US.

Edit: after a simple google search, the 2022 trade between the US and Mexico was $780 billion. This chart makes more sense to me now.

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TimeSuck5000 t1_jdhonus wrote

And there’s no insight into exports vs imports. Is the trade with Asia cheap goods that Mexico adds value to and sells to the US and Europe? Or is Asia a final destination for exports? Can’t tell.

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6158675309 t1_jdijgc2 wrote

Yup, a lot of firms from China setup shop in Mexico when tariffs were put in place. Intermediate stop, some minor change and now...Made in Mexico vs China.

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MedioBandido t1_jdipgj3 wrote

Yes to an extent. It’s not 1:1. There’s a pretty convoluted formula used to determine country of origin depending on where the components come from. If you shipped 100% of components to Mexico where you glued them together, I don’t think you’d get away with an Hecho en Mexico.

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6158675309 t1_jdjjh9h wrote

Yeah. I’m not sure for country of origin. I will see if I can find it. I was listening to a podcast and it was about Chinese firms buying up massive sites for factories in Mexico to get around US tariffs.

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TheLizzardMan t1_jdi7jx6 wrote

A lot of distribution centers for various companies are located in Texas. This stuff definitely isn't all staying there. lol

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citizenplatypus t1_jdkz3qb wrote

The trade with the US is over 700 billion. It is actually the trade between just Texas and Mexico

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EggCouncilCreeps t1_jdizx6a wrote

Yeah, I don't know shit about texas geography but I imagine there's a hell of a port in houston.

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iwouldhugwonderwoman t1_jdmox4y wrote

This is what my company has.

We have a manufacturing facility across the border in Mexico and a couple warehouses in Texas. We import the parts from Mexico, to the Texas warehouses and then route them to the appropriate manufacturing facility in the USA (not Texas) so they can be used in the higher level assembly.

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TexasTwing t1_jdj4p00 wrote

Nope. Texas exports to Mexico include oil and gas, chemicals, nuclear reactors, iron, steel, plastics, and copper. Mexico’s exports to Texas include nuclear reactors, plastics, oil and gas, furniture, fruit, and nuts. Both are over $100 billion in each direction.

Texas’ GDP is 45% more than Mexico’s, so it’s not unreasonable for two neighbors to have so much trade.

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KenDefender t1_jdks636 wrote

They are both sending nuclear reactors to each other on the regular? What's up with that

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Yglorba t1_jdl47uu wrote

What if we just passed a nuclear reactor back and forth... forever.

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TrustM3ImAnEngineer t1_jdj7x9v wrote

So Mexico doesn’t trade with Iowa, for example?

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TexasTwing t1_jdj8cv8 wrote

About $3 billion total imports and exports between Mexico and Iowa. Makes sense. Iowa is smaller and further. Iowa’s GDP is 1/6th of Mexico’s.

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TrustM3ImAnEngineer t1_jdj8nh0 wrote

I guess it’s $780 billion in 2022 for total US to Mexico trade. Makes more sense now.

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joelaw9 t1_jdi99q4 wrote

A big point is that many factories in Texas will often have a Mexican equivalent that 'sells' the product back to the factory before shipping it wherever.

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LightningCozy t1_jdjlkm6 wrote

I-35 goes from Mexican border at Laredo, TX north to Duluth, MN.

Once free trade was opened up between, the US, Mexico, and Canada the number of 18-Wheelers going north and south on it everyday skyrocketed!

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kingofwale t1_jdho2w6 wrote

I also buy more stuff from my local store I can walk to, than a store I have to take a bus to…

Same logic.

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rtakehara t1_jdhr61m wrote

yeah, I was like, Mexico trades with a neighboring state that shares it's biggest border than the one on the other side of the planet? shocking!

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StanielBlorch t1_jdifmcz wrote

Must be because of that 'NAFTA superhighway' all the regular suspects were shitting their pants about way way back in 2007.

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Pr1ebe t1_jdhwo2c wrote

Yeah, not really getting what the title is supposed to be telling us that we can't clearly see lol. It looks like Mexico trades with Texas more than anything else graphed

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PB4UGAME t1_jdjs1kg wrote

Perhaps the title it trying to highlight that a single state of one country accounts for more trade than an entire continent and a multitude of countries that when combined still only make up Mexico second biggest trade partner?

They could have done the US in its entirety, but then it would be nearly ~$800b and would dwarf every other trade partner; or they could have compared it to all of North America, which isn’t that much different from just using all of the US—but when you look at just Texas, its still the single largest trade partner, ahead of the entire continent of Asia, but its a bit closer and more comparable while still highlighting the extreme difference in trade volume.

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Tofubees t1_jdi6miy wrote

I wonder if Texas trades more with Asia or Mexico?

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Otherwise_Toe_4145 t1_jdjrgk0 wrote

That's not exactly right. Maybe the store on the other side of the world is cheaper / has more goods. Case and point: Brazil biggest trade partners are China and the US and not its neighbors (although to be fair, Argentina comes 3rd)

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SerialPhilanderer t1_jdkyczd wrote

Right - the main take away is how much trade comes from Asia despite the Pacific Ocean being in the way.

Makes you wonder how much more business the US and Mexico could be doing if it weren't for the political barriers.

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tilapios t1_jdhvu00 wrote

It's as if Mexico and the US have a shared border and a free trade agreement.

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Ahab_Ali t1_jdhm0hf wrote

And that is just avocados and Roma tomatoes!

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Thisisntmyaccount24 t1_jdi0c6s wrote

Every now and again I travel to TX for work. The food down there is just fantastic. I’m a big texmex and BBQ guy, and god damn can they make plates down in TX.

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RandoCalrissian11 t1_jdi908l wrote

Their Tex Mex and BBQ is great, but Texas also has my favorite Thai restaurant too.

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EggCouncilCreeps t1_jdj04h7 wrote

Yo review that place to me I make it down to texas every now and then. South Congress Cafe in Austin has these crab enchiladas that made me fall in love with food again. Fuck I'm gonna have to spend my airline points aren't I :/

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RandoCalrissian11 t1_jdj18do wrote

It’s called Lotus Thai in Rocksprings, Tx. About 2.5hr west of San Antonio in the middle of nowhere. Usually served American, you can also get each dish Thai hot (extra spice). Nothing is too hot. It’s not a large menu, it’s one Thai lady as the cook, one helper, and one server make up the entire restaurant, but the food is so fresh and delicious I always eat there 1-3 times a trip. Lunch only also.

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RandoCalrissian11 t1_jdj2cow wrote

Also, Rudy’s BBQ in Leon Springs is always a stop of mine.

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EggCouncilCreeps t1_jdj5jvq wrote

Dude I have four bottles (one of sissy sause for when mom visits) in my pantry. I like the way you think.

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campionesidd t1_jdi30x3 wrote

Why is this surprising?

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cyrus709 t1_jdibq51 wrote

It's not. Nor do I think the data is very beautiful.

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dancingbanana123 t1_jdixpmb wrote

Data doesn't have to be surprising to be interesting. I thought it was neat.

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CountVampaDantes t1_jdi4ovo wrote

And half of this trade is H-E-B.

The other half is 🎼Avocados from 🎵exico 🎶

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[deleted] t1_jdinr5x wrote

The majority of people from the rio grande region (like me) love Texas and americanized culture

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MedioBandido t1_jdiofwc wrote

From the geography northern Mexico, it makes a lot of sense. Places like San Antonio and Laredo are further south than Mexican cities such as Hermosillo and Chihuahua.

Our California biz exports to Mexico and we still ship everything to freight forwarders in TX first. It is more efficient to ship on rail to Laredo, then truck it into Mexico City or wherever than to truck it from California directly.

Laredo is like half as close to CDMX as San Diego is.

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latinometrics OP t1_jdhic1y wrote

From our newsletter:

It may seem unbelievable, but Mexico's leading trading partner is not the US per se, but Texas. In fact, in 2022, Mexico traded more with Texas ($286B) than it did with all of Asia ($262B) and six times as much as it did with all of Latin America ($48B).

It's no longer news to most that nearshoring has taken Mexico by storm following COVID-19. International consumer goods companies and vehicle manufacturers are moving production to the country's northern states. Big news came from the state of Nuevo Leon as Tesla announced a new Gigafactory in its capital city of Monterrey. However, most may not know that even Chinese companies are now choosing to manufacture in Mexico instead of China!

As of 2021, China's GDP per capita was 25% larger than Mexico's ($12.5K vs. $10K). China's official minimum wage ($377/Month) is now larger than Mexico's ($234/Month). The assumption that Chinese labor is cheap by definition has changed in recent years. Also, the disruptions to the global supply chain from the pandemic and the Suez Canal blockage have raised concerns about the risks associated with manufacturing predominantly in Asia to provide for a US consumer market. In addition, the imposition of tariffs on about 66% ($300B) of Chinese goods imported to the US that the Trump administration set are still in effect. Meanwhile, the USMCA trade agreement guarantees little to no tariffs between Mexican and US entities.

The nearshoring craze in Mexico seems to be here to stay. So long as the US remains a large consumer market, the world will adapt to sell to it. Meanwhile, the decay in international relations and the fear of further supply chain complications have turned the dial back to when trading overseas was risky and unattractive.

The "Made in China" days may be behind us, and, as Nuevo Leon's governor, Samuel Garcia, recently stated regarding the new line of Tesla vehicles built in his state, these will hit the market branded as "Made in Nuevo Leon."

Tools: Rawgraphs, Affinity Designer, Sheets
Sources:

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Whiterabbit-- t1_jdlfuom wrote

> the Suez Canal blockage

that one ship screwing up international trade.

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Dks_scrub t1_jdjctbx wrote

It’s very funny Americans and American politicians are sometimes suspicious that Mexico is plotting to ‘retake Texas’ when the reality is that north Mexico is slowly morphing into south Texas, not the other way around.

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Dm1185 t1_jdidquu wrote

It’s like Mexico and Texas border each other.

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LittleButterfly100 t1_jdiqvzs wrote

Texas and Mexico sitting in a tree...

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LupusDeusMagnus t1_jdidzqw wrote

It’s almost as if they are right next to each other.

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Arbiter51x t1_jdiuv45 wrote

Odd that Canada did not appear on this chart.

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series_hybrid t1_jdj7otc wrote

You know those hemi engines in the "made in America" Chargers and Dodge ttrucks?

The hemi is made in Saltillo Mexico

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pedroari t1_jdjk3yh wrote

Well, the cocaine going to Hollywood is offbook

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LightningCozy t1_jdjkhan wrote

Not surprising. I live in Texas. We are right next door to each other! We have been big trade partners for a very long time.

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Thug_shinji t1_jdkjt9y wrote

Fun fact mexican labor is bow cheaper than chinese and more skilled. Mexico is one of the healthiest demographics globally of any country.

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tylorr83 t1_jdisnkw wrote

All the street racers going into Mexico have really helped Texas and Mexico's trading!

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WishGullible5142 t1_jdkv95j wrote

Mexican here, we do not trust Latin American countries, and not even Latin American countries trust each other. Otherwise, we would be a second EU or NATO.

Not only that, but the dollar is a good stable currency for the most part, so it is always in demand

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mfomatratzen t1_jdlr969 wrote

As a Latin American I agree. Our young countries can’t stand each other. We either integrate like the EU, after decades of war, or it will take more than El Chavó and Betty la fea to have a more sense of shared belonging.

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Yvaelle t1_jdl3zn9 wrote

For a more extreme example, BC does more trade with 4 US states (California, Washington, Oregon, New York), than it does with its only neighboring province (Alberta).

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ADIDASects t1_jdleiuc wrote

But Texas told me Mexico bad must build wall???

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cybercuzco t1_jdm4k9o wrote

Makes sense, Texas was a Mexican state until it seceded because white illegal immigrants from America wanted slavery, which the Mexican government had outlawed. These American-Mexican immigrants then called on the United States to invade to protect “American interests” aka slavery which the Americans obliged to do. And that’s why we remember the Alamo.

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ExecTankard t1_jdi14p4 wrote

Of course because established business overland

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nim_opet t1_jdic9bo wrote

Makes sense, though it’s actually the US, no?

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DrPeGe t1_jdim0rm wrote

I've been to El Paso/Juarez a LOT. I wonder if this includes the truckloads of goods bound for the US that go through texas? As an example, electrolux builds appliances (largest appliance maker in the world with multiple brand names, Swedish company) in Juarez that pass into el paso, and then distribute across the U.S... Just a thought.

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MaybeACoder007 t1_jdirnqu wrote

Does trading with a satellite state count as trading?

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ArcaneDanger t1_jdiyprr wrote

Almost as if…they’re right next to eachother

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papi_chulo_LSD t1_jdj9r8c wrote

Where’s the bar for “rest of the USA”

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Sevinki t1_jdjeybd wrote

pssst, dont come here with „facts“ and „reality“.

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nirad t1_jdjp6pn wrote

Does AMLO know this? He doesn't act like it.

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Mas_Madk t1_jdjuanh wrote

In a similar situation with China and Tiwan..

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epanek t1_jdkddiz wrote

Good. Intl globalization served its purpose. Let’s move on from Asia

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Electronic_Permit300 t1_jdks6oi wrote

I mean the Cartels make a ton of their profits with drug smuggling and human trafficking through Texas & Arizona.

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bgd73 t1_jdksphm wrote

my first and last time trying tequila was texas.. got the real deal I guess.

mezcal, lots of fruits...corn..

Texas has a great neighbor.

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phoncible t1_jdkv3u6 wrote

This shouldn't be that surprising. I believe Australia trades more with China than with the West, and that's mainly due to proximity. Never underestimate the value of just being close.

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mfomatratzen t1_jdlr2iz wrote

And then there’s the UK, believing it will trade more with Australia than with Europe.

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Hilife5 t1_jdlxn8u wrote

Those quick trips to Wally World from Juarez add up

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EggCouncilCreeps t1_jdizrju wrote

Length of border vs. something something. Ease of trade and access to port facilities.

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Tallen122 t1_jdj9nrp wrote

It’s almost like they’re directly connected with a superpower or something

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Helper_J_is_Stuck t1_jdjc83q wrote

The word region is doing a lot of heavy lifting here

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llamapanther t1_jdjyg5s wrote

This is not surprising nor beautiful data wtf? Not like Texas and Mexico shares a border with each other🤯I'm actually only a bit surprised about the fact that Asia is that close.

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clapton1970 t1_jdkaloe wrote

Does this include people and drugs?

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TexasAggie98 t1_jdkk0tn wrote

And just think, this doesn’t include the billions and billions in drugs, cash, sex slaves, and guns that cross the border illegally or the millions of illegals.

Legally and illegally, Texas and Mexico are joined at the hip economically. It is in all of interests for Mexico to restore the rule of law and civil society so that these trade values can go even higher.

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OneWorldMouse t1_jdkm31s wrote

Asia is like 48 countries... this is a very strange chart.

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Whiterabbit-- t1_jdlg1w8 wrote

all of them very far and except for China, Japan and India, Asian countries have smaller GDP than Texas. Texas GDP is about 5x Russia.

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yvel-TALL t1_jdkmeo4 wrote

Yah, we should look into increasing the Mexico-Asia border in order to rectify this, Texas has a very unfair advantage of hogging over a third of Mexico's border!

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R0GERTHEALIEN t1_jdkp63s wrote

That's crazy I mean Texas is soo far from Mexico. O wait, it's right fucking there and has a huge economy

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Aggravating_Reading4 t1_jdj9im4 wrote

It will continue to grow as the US becomes more crippled by stupid people

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mrsprinkles565 t1_jdjm3o3 wrote

These metrics are most certainly port of entry based and therefore Texas represents USA.

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headphonz t1_jdi9nbb wrote

yeah... uhh. no they don't. That's because Title of export product is changing hands in Texas from a US or Canadien seller to an exporter who then transfers or does end to end deliveries in Mexico.

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DecisivelyArbitrary t1_jdinl4p wrote

Im just going to scroll through the comments to see if someone posted the tasteless joke I thought off. Cant take that heat, myself.

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Chambawamba1995 t1_jdilab1 wrote

But their president wants to divorce with USA and lay down under China

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Jlchevz t1_jdjamt5 wrote

Absolutely not, he may say crazy shit but it’s not gonna happen

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PwnanyGaming t1_jdinxf5 wrote

It's funny that China is the "big bad" but all the Republicans who wanted that wall to keep the evil Mexicans out are benefitting from those same Mexicans they wanted out - while China isn't benefitting them whatsoever, but does sell cheap products at least.

If anything, data such as this should help reinforce the relationship with Mexico and use it to both country's advantages.

But you know, build more of a wall and buy pencils from China instead.

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Lvl7King t1_jdhvvsg wrote

Thanks in large to the USMCA Trump trade deal.

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capsaicinintheeyes t1_jdi0yp7 wrote

I thought I remembered a bunch of sound and fury followed by the passing of a bill that was 99% pre-Trump NAFTA...but that's not to say there was nothing new in there that may have helped our trade I vaguely remember for the Mexican side something about insisting on minimum wages being higher for manufacturing cars that would be sold in the US, so either Mexican workers get a raise, US workers become more competitive, or both...which all seems win-win-win to me.

How does the data on OP's graph compare to the years before Trump's revisions passed, tho? I wouldn't know where to begin

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TheBatemanFlex t1_jdi7pi6 wrote

Nope. USMCA did not have a significant effect on anything in OPs graph.

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carlosortegap t1_jdj8a44 wrote

The trade percentages haven't changed much since we went from NAFTA to USMCA

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joaomsneto t1_jdhjrb4 wrote

You have to obey your master.

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No-Calendar-1534 t1_jdhuekw wrote

What a weird thing to write in response to this

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Temporary-Alarm-744 t1_jdhzovx wrote

He's not wrong. In 2019 there was a mass shootings targeting Mexicans in El Paso after abbot sent off campaign emails talking about Mexicans are invading. His response was the equivalent of"and? Get back to work you fucking Mexicans". I wouldn't call the relationship partners. More like nation state indentured servitude. Hell if Abbot ever became president I wouldn't be surprised if he coup'd Mexico just for the lulz

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