While the US ran a trade deficit of $22 billion with Mexico in 1999, the majority of states (27 in fact) showed trade surpluses, according to a recently completed study by Taimerica Management Company.

 The study is based on 1999 trade flows reported in the US Department of Transportation’s Transborder Surface Freight Data.  Ninety-five percent of all US exports to Mexico move by truck or rail while 85-90 percent of imports are via these transportation modes.  Here are some  findings from the study:

• Texas and California, the two largest states bordering Mexico, account for 45 percent of US exports and a third of US imports respectively. 

•   About a third of US states exported in excess of $1 billion of farm or manufactured goods to Mexico in 1999.  The US Dept of Commerce estimates that $1 billion of exports creates 22,000 jobs.

• The Top-10 states ran surpluses exceeding $100 million per year while the Bottom-10 ran deficits between $500 million and $5 billion (See Table). 

• When adjusted for size, the largest surpluses occur in Delaware, Colorado and Kansas while the largest deficits occur in Arizona, Michigan and North Carolina. (See Map)

• States running large deficits are involved in agricultural or maquiladora commerce with Mexico(See Map). 

• Arizona is the principal import center for winter vegetables from Mexico, which are distributed by Nogales companies throughout the USA.  These imports from Mexico are generating lots of jobs and income in Arizona in distribution and transportation. 

•  The deficits for Michigan and North Carolina are related to shipments of components to maquiladora operations in Mexico, factories that assemble US made components into final products and returned to the US. 
• Production sharing  arrangements,however,  improve the competitiveness of US companies in global markets.

Taimerica Management Company has partnered with Mexico Siting Consultants in Mexico City to provide site selection for retail, factory and office facilities throughout Mexico.   The company’s mission also includes assisting US states and communities to enhance their trade with Mexico.  Our capabilities include GIS mapping, unique demographic databases, as well as a massive network of business contacts in Mexico.  Our partners include a former cabinet minister, a prominent attorney & notary and a professional economic developer trained in the United States.  Think of us when planning your next trade mission or visit to Mexico.   You can contact us to discuss your trade development needs or to obtain our brochure.