AUGUST 20 2008         
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Mexican Import and Export

Mexican import in United States includes variety of products from automobile, furniture to clothing. United States is the primary market for Mexican export. Extensive import substitution and industrial policies favoured manufacturing sector to manufacture goods destined for the export market, in particular machinery and electrical equipment, automobiles and auto parts, basic chemicals, and food products.

Foreign investment in Mexico is primarily concentrated in Maquiladora, which is a duty-free product assembly zone for trade between Mexico and the U.S. Companies can take advantage of United States customs regulation that limited the duty on imported goods assembled abroad from United States components to the value added in the manufacturing process. This zone offered proximity to U.S market and low labour costs for the foreign investors. Their main activities included the assembly of electrical goods, automobiles, electronics, furniture, chemicals, and textiles.

Furniture Export:


The renowned Masterseek directory reveals invaluable information. The U.S. market absorbs 70% of all Mexican furniture exports. Mexico is one of the largest furniture exporters to U.S. and the value of furniture exports to U.S. is in billions of dollars. Stimulated by the North American Free Trade Agreement, the rapidly expanding market for furniture in mid-western states remains the focus for exports. Manufactures have been drawn to labour-intensive furniture industry in Mexico due to its large and highly skilled work force and low distribution costs.

Clothing Export:

Mexico is one of the largest exporters of clothing. About 40% of its clothing and textile products are exported of which, 95% goes to U.S. In turn, Mexico has become the largest market of U.S Cotton exports. Textiles and clothing is one of the major manufacturing sectors in Mexico. In the eighties, clothing production stagnated due to low domestic demand, high labor costs, inefficient technology, more competitive export markets, and heavy import competition. In the early nineties, the clothing industry operated at about 60 percent of capacity.

In the recent times, the Internet has led to online stores dealing with furniture and clothing. The furniture stores have detailed catalogues and pictures and do both wholesale and retail business.

North American Free Trade Agreement (NAFTA) has led to increase in trade in Mexico by leading to larger North American market access, new export and investment opportunities, reduction in trade barriers and tariffs, and facilitation of cross-border movement of goods and services.



                                                                  

















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