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Europe and Asia Slowing, Mexico Buying More Electronic Components

While every state in the union may not be seeing this increase in orders from Mexico, New Mexico state reports it has seen a major increase in buying from their southern neighbor, Mexico, as the pandemic creates issues with orders from Asian and European countries.

 

New Mexico exports to Mexico are headed for another record high this year, growing 11% from January-June, compared with the first half of 2019,” the Albuquerque Journal reported.

 

With the ongoing trade war with China, and disruption of logistical procedures orders from Europe and Asia have declined in 2020, according to the U.S. Commerce Department. 

 

Exports to Mexico have grown dramatically over the past decade, especially last year, when sales south of the border leapt to an all-time record of $2.39 billion, up 58% from the $1.51 billion in state exports logged in 2018”, the Journal noted from trade data from the U.S. Commerce Department.

 

Part of the growth this year has been from the increase in demand of computers and other electronic parts to meet work from home needs. 

 

“There’s been a gigantic surge in demand for computers and related electronics with people forced to work remotely from home,” New Mexico Trade Alliance President Randy Trask told the Journal. “That’s boosted New Mexico exports, particularly computer components from Santa Teresa to the Foxconn plant across the border.”

 

The new U.S, Mexico, Canada Agreement that replaced NAFTA July 1st has brought a renewed sense of stability between the US trade partners. The increase in Mexican exports has helped New Mexico mitigate the drop from Europe and Asia. Sales to China are markedly lower, falling 22% from $506 million in January-June 2019 to $393 million this year.

 
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