(⊙_⊙)
One article every day Global Humanities and Geography
WeChat public account: Earth Knowledge Bureau
NO.2307-U.S. and Mexico, work is also tiring
Author: Prince of Orange
Proofreading: Chao Qian / Edit: Tuna
Mexico shares a land border of more than 3,000 kilometers with the United States, among which 55 land entry ports are distributed, and 15 million people live near the border. Mexico is undoubtedly one of the most important trading partners of United States .
There are 30,000 trucks, 420,000 cars, and 1 million passengers per day
crosses the border between Mexico and the United States ▼
For a long time, news about the relationship between the two countries is usually compared with negative . The history of the US-Mexico War , the current situation of drug and gun smuggling, the unsolvable problems of gangs, and the imagination of illegal immigration and capital harvesting have all made the relationship between the two countries seem very unhealthy.
However, if you look far and go beyond these gimmick-filled details, we find that economies of are mutually penetrating, frequent population mobility, relationships have become increasingly close, and is becoming more and more complicated. Even to some extent, the United States and Mexico are in the process of integration.
, which is mainly Mexican, Latino (green) has become the main population of
The US-Mexico border states (red is African-American) ▼
In recent years, with the tension of Sino-US relations, trade frictions have continued. The United States is trying to transfer the industrial chain to neighboring countries with stronger sense of identity to replace distant traditional trading partners. That is, the so-called "near-strait outsourcing" instead of "offshore outsourcing", which is more blunt and arbitrary. The United States has the intention to use Mexico to replace China's foreign trade partner status.
In 2021, Mexico's export trade volume with the United States accounts for 45% of GDP
It can be said that the United States has supported nearly half of Mexicans
(Picture: shutterstock) ▼
Replace China's trading partners?
Since 2015, China has been the largest trading partner of the United States. With the arrival of Trump , Sino-US relations continue to be tense. In 2019, when trade frictions are at the forefront, the largest trading partner of the United States became Mexico, which has appeared in the newspapers with gangs, drugs, and slums.
Before that, Mexico was indeed regarded by the United States as a troubled neighbor
is the source of drugs, illegal guns and immigration
(Photo: Flickr) ▼
Mexico is certainly an important source of drugs in the United States, but Mexico exports to the United States not only drugs. Take 2019 as an example. In that year, Mexico ranked the top 5 exports to the United States, namely, Automotive (US$101 billion), Machinery (US$66 billion), Motor (US$64 billion), Optical and Medical Device (US$16 billion) and Fossil Fuel (US$13 billion).
out of coveting the domestic automobile market in the United States
Almost all large car companies in the world set up factories in Mexico
(Picture: Flickr) ▼
(Picture: Flickr) ▼html l0
Yes, Mexico has crude oil, machinery manufacturing industry , and even assembles cars. It is not the poor and backward banana republic as imagined. is an industrial country with relatively complete industrial categories and more developed petrochemical, electricity, mining, metallurgy and manufacturing industries. and its trade complementarity with the United States is extremely high.
Because of this, since 2019, companies from China, Canada and Mexico have been competing fiercely in the US market, and Mexico has the momentum to come from above to gain the position of the United States' largest trading partner.
Mexico's ambition is not only to be the "major corn flake province" of the United States
(Photo: shutterstock) ▼
In the first half of 2019, the trade volume of goods between China and the United States was far lower than the trade volume between the United States and Mexico. Entering the second half of the year, China and Canada have successively surpassed Mexico. By the end of the year, Mexico returned to the position of the United States' largest trading partner, with a total trade in goods reaching US$614.5 billion. China, Canada and Mexico account for about 14% of the total foreign trade volume of the United States, and totaled nearly half of the total foreign trade volume of the United States. The top ranking changed hands several times within a year, and the competition was fierce.
Until 2019, China, Canada and Indian fight back and forth
(Source: US Department of Commerce) ▼
In March 2020, when the new crown epidemic has not yet fully broke out, the US government intends to use this to guide enterprises to accelerate their moves from China. The then-US Secretary of Commerce Ross publicly made remarks that "the outbreak in China will help accelerate the return of manufacturing to North America."
Mexico is also having plans to undertake industrial transfer . Its Minister of Economic Affairs Marquez also expressed this intention, "Mexico has negotiated with many foreign companies, hoping to attract business from Asia to gain benefits from the US-Mexico-Canada Free Trade Agreement."
America's forefront just dealing with Huawei
Mexico's back foot's abacus is already typing Apple
(picture: shutterstock) ▼
(picture: shutterstock) ▼
Compared with politicians' public speeches, the remarks made by think tanks seem unobstructed. For example, the International Strategic Research Center once proposed that " The United States, Canada and Mexico should establish in the North American market to replace China's supply chain and use it as the cornerstone for implementing the nearshore strategy in the Americas."
The government broke up and took the lead in grabbing the orders of Chinese companies
Mexican companies themselves must have the ability to eat
(Photo: shutterstock) ▼
3 In the first half of 2020, Mexico was still the largest trading partner of the United States. As the COVID-19 pandemic led to a global pandemic, important cities in Mexico were once shut down due to the epidemic. China quickly controlled the epidemic and its advantages in having all industrial categories were highlighted. surpassed Mexico in the second half of the year, but the difference between the two was only US$48.7 billion. In the first two months of 2021, Mexico once again became the largest trading partner of the United States.
In the last quarter of 2020, Trump once again sanctioned Chinese companies on the grounds of cooperation with the military, hurting others and themselves just to exchange for decoupling from China
(let Mexico pick up the cheaper, picture: shutterstock) ▼
The key node for the United States to integrate Mexico
between the United States and Mexico is not just the relationship between soybeans and corn for cars. As mentioned above, there are 15 million people living on both sides of the border, and they are not just drug dealers, strippers and their American patrons. Their more common portrait is that they work for ordinary employees of manufacturers across the U.S.-Mexico border.
If there is a job, who is willing to be a street gangster?
(Picture: Yitu.com) ▼
Mexico voluntarily binds to the US economy is not the norm in history. Its source is "North American Free Trade Agreement" (NAFTA), which officially came into effect in 1994.
Historically, the memories of each other between the United States and Mexico are generally not pleasant. The United States regards Mexico, which has completely different ethnic composition, cultural traditions, and political ecology, as a potential threat to the southern border. frequently interferes in Mexico's internal affairs and supports the Mexican right.
The United States' territory today is all taken from Mexicans
Mexicans cannot not remember (Photo: wiki) ▼
Mexicans are also filled with anti-American sentiment, This has led to the problem of Mexico's polarization in the left and right struggles, but its national governance capabilities have been low for a long time. There is a lack of funds and the internal and external environment is not very stable, so it is naturally more difficult for a country to develop its economy.
Some Mexicans hate the United States and accused it of using high walls to isolate themselves and their families
Other Mexicans hate themselves why they are not American
(Picture: shutterstock) ▼
In the 1980s, Japan's economy was at its peak, and it was regarded as an important economic rival in the United States. European integrated process is accelerated and internal resources are integrated.
United StatesIn order to maintain economic advantages, needs to expand its economic territory; Canada has rich resources and a wealthy economy, but has a vast land and a sparse population, and lacks a huge market; Mexico has a large population, extremely low tax rates, and a huge potential market, but lacks capital and technology; , all three, , all intend to deepen cooperation.
on the surface is a three-way victory, and whoever benefits the most is the most, all countries are also as smart as mirrors
(Each takes the needs, each is happy, picture: wiki) ▼
According to the North American Free Trade Agreement, the three countries formed free trade zone , reducing trade barriers, increasing investment opportunities, and establishing dispute resolution procedures. American companies have successively invested in and built factories in Mexico, enjoying tax incentives and lower labor and land costs. Strong Mexican companies also choose to invest in the United States.
The two countries on the border north and south of the north and south have competed to develop industries with comparative advantages, promote cross-border cooperation between manufacturers, and form a supply chain to jointly manufacture products, reducing costs while enhancing the competitiveness of goods.
Canada has resources, Mexico has labor, and the United States has market
Of course, the United States will always make high added value that dollar
(picture: wiki) ▼
(picture: wiki) ▼
In 2020, Mexico attracted companies that " near-shore outsourcing " involves furniture (23%), home appliances and electronics (20%), medical devices (15%), machines and tools (14%) and automotive parts (12%). Representative companies are mainly American companies, including Ford, General Motors, Honeywell , Nike, Hasbro , etc.
Many of them are from the conflict between the United States and China
( Ford Automobile factory in Mexico, picture: Yitu.com) ▼
As early as 2014, the Mexican industrial sector consumed 36 billion US intermediate products, and the US industrial sector consumed
32 billion US intermediate products. Today, 40% of the value of imported products from Mexico actually originates from the United States.
These may be from goods provided by the United States, or from services provided by American companies. This means that 40 cents are returned to the United States for every $1 imported from Mexico; while only 4 cents are returned to the United States for every $1 imported from China. The degree of large-scale joint production between the two countries can be seen.
You, I, let’s get together sooner or later
(Picture: Yitu.com) ▼
So, what is the price?
The integration of the economies of the United States, Mexico and Canada has brought huge economic benefits to the three countries and eased the social contradictions in Mexico, the poor country. However, the integration process will inevitably involve the question of who is dominated by and who will integrate. answer is obvious.
In order to further attack China, we can make good use of the two neighboring countries around us
In 2018, NAFTA was upgraded to the US-Mexico Canada Agreement (USMCA)
(Picture: wiki) ▼
After the signing of the agreement, the amount of investment in Mexico continued to rise, and it doubled between 2015 and 2019. By 2020, Mexico attracted US$29.079 billion in foreign investment, of which 30.1% came from the United States and 40.6% went to the manufacturing industry. A large number of USD influx promotes the development of Mexican industry. When US dollar and US companies penetrate various important industries in Mexico and occupy a high-end positioning, in the future, whether will become an obstacle to the rise of Mexico's local industry is a question worth considering.
Coca-Cola even domesticated Mexico into the world's largest country in Coke consumption
Even water is controlled by others, let alone the development of high-tech
(Photo: shutterstock) ▼
The United States has an absolute advantage in the international division of labor of the United States and Mexico has taken the absolute advantage of design, marketing, and enterprise service links with higher profit margins. Mexico has more low-tech, labor-intensive industries. Although many Mexicans benefit from this, from the perspective of the Latin American left, this is inevitably suspected of harvesting Mexicans.
After all, Mexico doesn't want to do it. Some South American countries want to get a share of the pie
(Picture: shutterstock) ▼
At the same time, it is highly economically bound to the United States, and there are dual economic and political risks for Mexico. Once the United States experiences economic fluctuations, it will inevitably have an impact on Mexico.
The integration between the United States and Mexico is far from the level of EU , and the visible future does not lead to integration. It cannot be integrated into simply becoming a part of the United States, nor can it be alienated from preventing the educated and technical middle class from going to the United States. At the same time, cross-border drugs, cross-border prostitution, and rampant gun smuggling are also the negative products of that strengthen economic ties with the two.
Behind these banned illegal transactions
is actually the huge demand of neighboring countries
(Picture: shutterstock) ▼
For the United States, strengthens ties with Mexico also come at a cost. Middle-class workers in America have experienced a difficult time over the past few decades. The median real household income is still below its peak in 2007 and 1999. Manufacturing workers have had particularly hard time, with jobs falling by 29% since 2000.
Originally the blue-collar worker
This time, the class has fallen, who is willing to do so?
(Picture: shutterstock) ▼
Although studies have shown that between 2000 and 2010, 87% of manufacturing unemployment was caused by productivity improvement, and only 13% were related to trade. Some studies even believe that investment in Mexico can revitalize American industry.
But whether these conclusions are correct or not, cannot convince workers with strong sense of deprivation. When they point their finger at the Chinese outside the ocean and the Mexicans pouring into the border, is enough to shake the American political tradition populist craze happened.
It is precisely because of such a vast supporter.
. The seemingly outrageous Trump talent is hard to distinguish from Biden
(Photo: shutterstock) ▼
Although the cost is terrible, the economic ties between the United States and Mexico will inevitably develop. Because judging from the current situation in Mexico, this may be the least bad situation. After all, there are also South American powers such as Colombia that are eyeing Mexico's "near-shore outsourcing" business.
Colombia is not willing to export only to the United States
(Photo: Flickr) ▼
3 After decades of development, the United States and Mexico have made great progress and benefited both countries. However, Mexico's labor force, especially the number of skilled workers, is limited after all, and it will not shake the status of " offshore outsourcing " in the short term. However, in the context of China's demographic dividend decline, being regarded as a competitor by the West, and actively seeking industrial upgrading, 's "near-strait outsourcing" is indeed promising in the future.
As for whether this kind of worker's future is worth looking forward to, it depends on your opinion.
Reference:
.https://www.wilsoncenter.org/publication/working-together-economic-ties-between-the-united-states-a nd-mexico
.https://ustr.gov/countries-regions/americas/mexico
.https://www.state.gov/u-s-relations-with-mexico/
.https://www.rand.org/pubs/research_briefs/RB9533-1.html
.https://www.ciis.org.cn/yjcg/xslw/202107/t20210727_ 8058.html
*The content of this article is provided by the author and does not represent the position of the Earth Knowledge Bureau
Cover: shutterstock
END