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US-China trade war
EconomyGlobal Economy

China and Canada fall away as Mexico becomes the US’ biggest trading partner

  • Mexico is benefiting from ongoing US-China trade war, after overtaking Canada and China to become the US’ biggest trading partner in January and February
  • This is despite Donald Trump trying to force through a replacement for the North American Free Trade Agreement

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Aerial view of cargo trucks lining up to cross to the United States near the US-Mexico border (top) at Otay Mesa crossing port in Tijuana, Baja California state, Mexico, on April 2, 2019. Photo: Agence France-Presse
Sidney Leng

In the trade war with the United States, China’s loss is Mexico’s gain.

China’s bilateral trade with the US weakened in the first quarter of this year after export order front-loading from both countries started to fade. Mexico has taken advantage of the trade tariffs on Chinese goods to become the US’ top trading partner of the US so far this year, according to new data from the US Census Bureau.

This shows that while US President Donald Trump has stood firm on stopping Mexican immigrants on the US’ southern border, he has not been able to stop the flow of Mexican goods, which are partially filling the gap left by Chinese goods affected by the trade dispute.

The news comes despite the fact that Trump has been trying to force a revised deal through Congress to replace the 1994 North American Free Trade Agreement, covering the trilateral trade bloc of Canada, United States, and Mexico.

The US had US$102.5 billion in goods trade with Mexico in the first two months of the year. Photo: Agence France-Presse
The US had US$102.5 billion in goods trade with Mexico in the first two months of the year. Photo: Agence France-Presse

The US had US$102.5 billion in goods trade with Mexico in the first two months of the year. In second place was Canada at US$97.5 billion and then China at US$96.7 billion, according to seasonally adjusted data from the US Census Bureau. Mexico had been in third place, behind Canada and China.

China’s General Administration of Customs has said that from January to March, overall trade with the US fell 11 per cent year on year, to 815.8 billion yuan (US$121 billion). The US is now behind the European Union and the Association of Southeast Asian Nations in order of China’s biggest trading partners.
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