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Trade Profile: Mexico Focuses on the United States

Jun 19, 2017 | 09:15 GMT
International trade is a tenet of Mexico's economic policy today. For much of its modern history, however, the country took a defensive stance toward free trade.
International trade is a tenet of Mexico's economic policy today. For much of its modern history, however, the country took a defensive stance toward free trade.
(Marcelo Rodriguez/Shutterstock)

The United States defines Mexico's trade strategy. Its proximity to and free trade agreement with the world's largest market -- and the generator of 25 percent of global gross domestic product -- is Mexico's main advantage over its peers in the developing world. And its abundant, comparatively cheap labor pool gives the country a distinct advantage over developed nations such as Canada, too. Mexico has spent the past two decades building a substantial manufacturing base intended to supply the U.S. market. Today, its main strategic interest lies in preserving its trade access across its northern border, and its trade policy focuses largely on defending its share of the U.S. export market against foreign competitors....

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