Economic integration between Mexico and the United States 2019

1. “Economic Integration between Mexico and
the United States”
Dr. Alejandro Díaz-Bautista
Professor of Economics and Researcher at
Colef
adiazbau@gmail.com
Prepared for the 61st Annual Conference of the Western Social
Science Association, April 24-27, 2019, Manchester Grand
Hyatt , San Diego, California.

2. • North American integration is the process of
economic and political integration in North
America, particularly integration of Canada,
Mexico, and the United States.

3. • The United States and Mexico have
undergone an accelerated process of
economic integration over the past two
decades. Trade has tripled between 1990 and
2008, influenced by the North American Free
Trade Agreement (NAFTA).

4. Economic Integration
• Trade, jobs, and economic growth are only a pretext for
the new agreement. The real purpose of the new
agreement, as Ex President Peña Nieto admitted, is
integration — the merging of the United States,
Mexico, and Canada into what The New American has
long-described as the North American Union.
• Just as the European Union is the culmination of
decades-long European economic integration,
beginning with the Marshal Plan and the European
Coal and Steel Community, so too would a North
American Union be the culmination of the decades-
long North American integration beginning with NAFTA
and now the USMCA.

6. USMCA 2019 - 2020

7. Top Trading Ports USA 2018
RANK PORT YTD
1 Port Laredo $228.77 B
2 El Paso Border Crossing, Texas $77.42 B
3 Otay Mesa Freeway Border Crossing, Calif. $46.8 B
4 Pharr International Bridge in Texas $33.97 B
5
Eagle Pass-Piedras Negras International
Bridge, Border Crossing, Texas
$30.04 B
6 Santa Teresa Border Crossing, N.M. $25.87 B
7 Nogales Border Crossing, Ariz. $24.21 B
8 Brownsville International Bridges $17.59 B
9
Calexico/Mexicali (East) Border Crossing,
Calif.
$16.95 B
10 Port of Houston $16.69 B

8. US Top Exports to Mexico
RAN
K
COMMODITY YTD
1 Gasoline, other fuels $27.53 B
2 Motor vehicle parts $17.03 B
3 Computer parts $11.75 B
4 Low value shipments $7.41 B
5 Computer chips $6.87 B
6 Petroleum gases, other gaseous hydrocarbons $5.37 B
7 Computers $5.06 B
8 Diesel engines $4.53 B
9 Electrical supplies, apparatus, less than 1000V $4.41 B
10 Cell phones, related equipment $4.36 B

9. RAN
K
COMMODITY YTD
1 Motor vehicles for transporting people $35 B
2 Computers $26.35 B
3 Motor vehicle parts $24.67 B
4 Commercial vehicles $22.83 B
5 Oil $14.44 B
6 Insulated wire, cable $11.42 B
7 Cell phones, related equipment $10.54 B
8 TVs, computer monitors $9.03 B
9 Tractors $8.59 B
10 Seats, excluding barber, dental $6.98 B
US Top Imports from Mexico

11. U.S. Largest trading Partners

12. Economic Integration
United States Mexico (Energy)

13. Economic Integration (Steel Imports)

14. Economic Integration (Manufacturing)

15. Resilient Economy

16. NAFTA Economic positive impacts
(1994-2017).
• The North American Free Trade Agreement created the
world’s largest free trade area with more than 450
million people living in the region. It's the most
powerful economic region with $23.72 trillion in gross
domestic product (GDP). It links and integrates the
economies of the United States, Canada, and Mexico.
• GDP per capita in Mexico had a growth of 55% from
1994 to 2017. In 1994 the GDP per capita was 5,745.41
dollars. By 2017 reached US($) 8910.33 using data from
the World Bank national accounts data, and OECD
National Accounts data files.

17. NAFTA Economic positive impacts
(1994-2017).
• GDP (current US$) grew 118% from 1994 to 2017.
In 1994 Mexico’s GDP was 527.813 billion, and it
reached 1.151 trillion dollars in 2017. GDP
(current US$) at purchaser's prices or the sum of
gross value added by all resident producers in the
economy plus any product taxes and minus any
subsidies not included in the value of the
products. It is calculated without making
deductions for depreciation of fabricated assets
or for depletion and degradation of natural
resources.

18. NAFTA Economic positive impacts
(1994-2017).
• NAFTA's trade area produces more than the 28
countries in the European Union.
• Between 1993 and 2017, trade between the three
members quadrupled from $297 billion to $1.17
trillion. That boosted economic growth, profits, and
jobs for all three North American Countries.
• Since NAFTA was enacted, U.S. foreign direct
investment in Canada and Mexico has more than
tripled.
• Data are in current U.S. dollars. Dollar figures for GDP
are converted from domestic currencies using single
year official exchange rates.

19. NAFTA Economic positive impacts
(1994-2017).
• Life expectancy at birth in Mexico increased
from 72.41 years in 1994 to 77.11 years in
2016, a 6.09% increase in Life expectancy in
Mexico during the NAFTA Era. The data used
includes the World Population Prospects:
2017 Revision, the United Nations Statistical
Division. Population and Vital Statistics Report
( various years ) and the U.S. Census Bureau:
International Database.

20. NAFTA Economic positive impacts
(1994-2017).
• The Gini index in Mexico went down from 50.3%
in 1994 to 43.4% in 2016 during the NAFTA era.
The GINI index is based on primary household
survey data obtained from INEGI and the World
Bank country department.The Gini index is a
statistical measure of distribution. It is often used
as a gauge of economic inequality, measuring
income distribution or, less commonly, wealth
distribution among a population. The coefficient
ranges from 0 (or 0%) to 1 (or 100%), with 0
representing perfect equality and 1 representing
perfect inequality.

21. “Economic Integration between Mexico and
the United States”
Dr. Alejandro Díaz-Bautista
Professor of Economics and Researcher at
Colef
adiazbau@gmail.com
Prepared for the 61st Annual Conference of the Western Social
Science Association, April 24-27, 2019, Manchester Grand
Hyatt , San Diego, California.