Foreign trade in products between Mexico, the United States and Canada fell 0.3% in 2019, to 1 trillion 251,091 million dollars, according to data from the Census Bureau and Banco de México (Banxico).
Intra-trade is trade between economies that belong to the same group. Extra trade is the trade of economies in the same group with all economies outside the group.
On the one hand, exports from the United States with its two neighbors totaled $ 549.067 million in 2019, a decrease of 2.9% year-on-year.
Conversely, US purchases from Mexico and Canada totaled 677,862 million dollars, an increase of 1.9%, at the annual rate.
USA: Exports, Imports, and Trade Balance of Goods by Country and Area, Not Seasonally Adjusted: 2019
At the same time, Mexico’s exports to Canada rose 1.7% to $ 14,319 million; while Mexican imports from Canada decreased 8.6% to 9,843 million dollars, at interannual rates.
Foreign trade and new agreement
The Mexico-United States-Canada Treaty (T-MEC), consisting of 34 chapters and 12 parallel letters, retains most of the market opening measures of the North American Free Trade Agreement (NAFTA) and other measures, while making notable changes to automotive rules of origin, dispute settlement provisions, public procurement, investment, and protection of intellectual property rights.
It also modernizes provisions in services, labor, and the environment, and addresses new business issues, such as digital commerce, state-owned companies, anti-corruption, and monetary misalignment.
Intra-trade represents the difference between the total trade of a group and internal trade. In theory, exports from economy A to economy B should be equal to imports from economy B from economy A registered FOB.
In practice, however, the values of the two flows are often different.
The reasons for these business asymmetries include: different registration times, different treatment of transit trade, under-registration, measurement errors, and erroneous pricing or invoicing.
Exports to (imports from) all world economies do not always exactly add up to total exports (imports). The difference is caused by ship shops, bunkers, and other minor exports.
In general, foreign trade is the movement that goods and services have through the different countries and their markets. It is done using currencies and is subject to additional regulations established by the exchange participants and the governments of their countries of origin.
Foreign trade economies are called open economies. This process of external opening began fundamentally in the second half of the XX century, and spectacularly in the 1990s, when the Latin American, Eastern European and East Asian economies joined.