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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)
- 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.