The Value of US Trade With Mexico and Chile
Developing countries are paramount to healthy capitalism and add value to existing markets, as well as open up new opportunities for business. Both Mexico and Chile have more potential as current trading partners. NAFTA and the Chile free trade agreement outline the exact details of the relationship between both respective countries and the U.S.
The bilateral relations between Mexico and the U.S. impact the livelihoods of millions of Americans. More than half of the states in the U.S. have Mexico as their first or second-largest export market. Mexico imported $236 billion worth of U.S. products in 2015.
Forty percent of individual parts in Mexican products come from the U.S., and both the U.S. and Mexico benefit from trade by supplying and receiving necessities. Mexico’s purchase of corn amounts to a quarter of total corn that the U.S. exports. Continuing this trade is necessary for both economies, and American farmers say that it is a “beneficial relationship.”
Exports, such as computer and electronic products and fabricated metals, have tripled since free trade was established through NAFTA. Mexico and the U.S. depend on each other’s economies.
Chile is a promising emerging market and has become a major mining country. Recently Barrick and Goldcorp, two major Canadian mining companies, have teamed up to develop one of the largest gold deposits in Chile.
Deals such as this have maintained the growing potential of minerals in the country. Chile has emerged as a viable option for U.S. exports operating in several different industries. Various market reforms give Chile appeal to American markets. Continuous trade will only benefit the U.S., as Chile has a large natural supply of various mining minerals.
Both Mexico and Chile are lucrative developing countries, that with continuous effort, can continue to grow. Aid to both countries will help combat elements of poverty and allow for future business deals with U.S. companies.
Support for both countries enriches U.S. potential internationally. Mexico is currently one of the strongest trading partners for the U.S. and Chile has the potential to become a major market for business, as all exports will enter the country duty-free.
– Nick Katsos