| | |  Business News 
Mexico’s Share of American Market Up
 Thomas Black & Jens Erik Gould - Bloomberg News
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June 01, 2010
Monterrey, Mexico – Mexico’s exports to the U.S. are taking market share from China as demand rises for Mexican-made refrigerators from Whirlpool and Dodge Ram pickups from Chrysler.
Mexico’s share of the $427.7 billion in goods and services the U.S. imported in the first three months of the year rose to a record 12.3 percent from 11 percent a year ago, helped by a weaker peso and U.S. companies moving manufacturing south of the border. China’s share fell to 17 percent from 18.4 percent.
To combat China’s low-cost manufacturing industry, Mexican factories have shifted to goods that are expensive to ship overseas and those that require more complex manufacturing, such as automobiles and appliances, said Luis de la Calle, a former Mexican negotiator for the North American Free Trade Agreement.
Mexico adopted the strategy after China’s entry into the World Trade Organization in 2001 caused the closure of hundreds of textile, toy and electronics plants.
The increase in Mexico’s share of the U.S. market will continue because of its proximity and supply of workers willing to be paid less than their counterparts in Canada, said de la Calle, a partner at Mexico City-based business adviser De la Calle Madrazo Mancera. Mexico might have as much as 15 percent of the U.S. market within three years and displace Canada as the country’s second-biggest source of foreign goods, he said.
Mexico’s exports reached $291.3 billion in 2008 before falling 21 percent last year as its northern neighbor struggled with the worst recession since the Great Depression.
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