Exports up 10.6% to Central America
Cepal stresses that Mexico only buys 831 million dollars annually in products; individual trade agreements, the key to evolve trade, argues the study
Trade between Mexico and Latin America continues to grow, since exports from Central America to the country increased at an average annual rate of 8.4 percent during the period 1994-2017. Meanwhile, exports from Mexico increased at an average annual rate of 10.6 percent during the same period.
According to the study of Trade Relations between Central America and Mexico, the largest increase in purchases from Mexico has even generated an increase in the trade deficit of Central America with our country, since in 2017 Central American exports to the country reached 831.7 million dollars ; almost seven times less than the amount imported from Mexico, which was 5 billion 521.7 million dollars in that same year. The trade deficit was of the order of four thousand 690 million dollars.
For the Economic Commission for Latin America and the Caribbean (ECLAC), trade between the Central American countries and Mexico evolved as of the signing of the North American Free Trade Agreement (NAFTA) trade agreement.
In addition, in 1995, the date of the signing of Mexico's first FTA with Costa Rica, Central American exports to our country totaled 87.6 million dollars; while for 2017 the amount increased more than nine times, and even in 2011 it was 11 times higher than in 1995 (990.1 million dollars).
Although 2011 marks the beginning of the new Central America-Mexico FTA, the recovery of Central American exports to the country has registered a lower average annual growth rate of 2.9 percent, between 2011 and 2017. On the contrary, the amount of Central American imports from Mexico have increased only six times between 1995 and 2017, going from 829.9 million dollars to 5 billion 521.7 million dollars.
However, its annual average growth rate between 2011 and 2017 has been 2.3 percent, which shows a greater use of Mexico's new trade agreement.
Trade between the Central American countries and the country increased not only in terms of value, but also in the quantity of products traded. In 1994, Central America exported 122 products to Mexico (six digits of the Harmonized System); for 2017, this number increased to 439 products, which means an increase of 261 percent in 23 years.
Honduras and Costa Rica are the countries that have recorded the largest increase in their number of products exported to Mexico, from 33 to 234 products in 20 years.