Economic analysts are vigorously arguing that both the United States and Mexico are reaping the dividends of their bilateral trade and neither is growing at the expense of the other.
Trade with Mexico, particularly the North American trade agreement, NAFTA, has become a moot point of discussion, after Donald Trump vowed to scrap the agreement, accusing it of stealing American jobs. But many analysts warn that scrapping the trade deal would hurt the economies of both countries and put millions of people out of jobs.
Central to their argument is the fact that Mexico is also investing in the US and generating thousands of jobs. According to the Bureau of Economic Analysis data analyzed by the Wilson Center, annual direct Mexican investment in the U.S. more than tripled from 2006 to 2015, from $5.3 billion to $16.6 billion.
“Both countries tend to experience economic ups and downs together, not one at the expense of the other,” says Wilson Center. According to its report appeared in March this year, daily trade volume between the two countries reached a staggering $1.2 billion in 2015.
Bloomberg reports that Mexican investment has created thousands of jobs in the US. The number of workers assembling motor vehicles and making parts in the US increased 50% since the recession, says Bloomberg citing data from the Labor Department.
The Wall Street Journal says Mexican food businesses have created thousands of jobs in Pennsylvania. To explain how the businesses are benefiting both the countries, WSJ gives the example of Petrochemical giant Mexichem SAB, which has invested more than $2 billion in the US over the past five years.
“Mexichem exports fluorspar and other raw materials from Mexico to its U.S. plant in Louisiana, which produces products such as refrigerants used by the car industry. The company, in turn, ships ethylene gas from the U.S. to feed its Mexico plants.”
The absence of NAFTA could hurt economies of border states. Arizona, where thousands of jobs are interconnected to trade with Mexico, is hoping to double its export to the neighboring country.