Home > 2024 > Mexico Used a Back Door into the US for China Products

Mexico Used a Back Door into the US for China Products

Mexico Used a Back Door into the US for China Products

China based shippers moved 117,000 TEU to Mexico during January, compared to 73,000 TEU in January 2023 and Xeneta is saying that “this is probably the strongest growing trade in the world right now”.

Xeneta analyst Peter Sand said China could be using Mexico as a way to skirt tariffs because some of the goods could be trucked into the US.

“With a sizable portion of these goods likely being trucked into the US, it gives rise to the possibility that China’s increase in trade with Mexico is being used to circumvent tariffs placed on imports from China to the US as part of the ongoing trade war,” Mr Sand said.

Xeneta’s cargo volume data is backed up by recent reports from Mexico’s naval ministry, which showed that the freight flows into the country’s west coast ports surged in January.

Mexico’s major ports handled 728,116 TEU in January 2023, a 20 per cent year-on-year increase for the country’s 18 ports. The country’s nine Pacific coast ports – which receive containers from China – handled the bulk of container movements in January, totalling 532,534 TEU for the month. Mexico’s two largest Pacific coast ports – Manzanillo and Lazaro Cardenas also reported record container movements for the month of January.

Trade between China and Mexico also expanded in 2023. The annual trade growth rate between the two countries in 2023 was 34.8 per cent, compared to 3.5 per cent in 2022, according to Mr Sand.

“This growth saw Mexico leapfrog China in Q1 2023 to become the No 1 trading partner for imports into the US measured by value,” he said.

Last year, Mexico ranked as the top trade partner of the US, with Canada ranked No 2, followed by China at No 3.

In 2023, Mexico’s trade with the US rose 2.5 per cent to $798 billion, boosted by exports of gasoline and other fuels and imports of passenger vehicles.

Mr Sand noted that while China to the US West Coast trade lane was nine times bigger than China to Mexico in January 2024, it was 11 times bigger compared to the same month in 2023.

You may also like
Trade Update – 12th April 2024: AUSTRALIA-KOREA FTA CELEBRATES BIRTHDAY, SOUTH KOREA REVIEWS CHIP RISK, CHINA LOBBIES AGAINST EU TARIFF RISK and many more…
FMC wants to fine MSC US$63 million for price gouging during COVID
Additional 1.7 million TEU’s needed due to Red Sea Rerouting
Trade Update – 5th April 2024: AUSTRALIA WILLING TO PURSUE EU FTA, THAILAND & SOUTH KOREA TO BEGIN FTA TALKS, TAIWAN TO HIT THE ROAD and many more…
Malcare WordPress Security