Improving U.S. -Mexican Economic Relations

Publication Date: August 1989

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Jorge Salaverry

Research Area: Economics

Keywords: Latin American

Type: Report

Coverage: Mexico

Abstract:

Mexico's economy depends enormously on the United States.The U.S. is Mexico's main trading partner, absorbing 60 percent of all Mexican exports while providing 65 percent of all Mexican imports. The U.S.-Mexican economic relationship, however, is not symmetrical. Mexico, though the U.S.'s third largest export market, receives only 6 percent of all U.S. exports and provides only 6 percent of all U.S. imports. Even so, a strong Mexican economy is in the U.S. interest. A robust Mexican economy could be a larger export market for the U.S. and could enable the Mexican government to reduce its huge debt to U.S. banks. More important, economic health could prevent social unrest in Mexico.