The Bilateral Relationship: The United States and Mexico in Economic Intertwining

The Bilateral Relationship: The United States and Mexico in Economic Intertwining

Not often does a nation have so many interconnected ties with another as the United States does with Mexico. United by decades of intertwined economies, the two nations share a unique relationship within the framework of global trade. This article delves into the multifaceted nature of this relationship, examining its current state and the factors that contribute to the economic interdependence of the two nations.

Trade in Agriculture: A Closer Look at Avocados

The value of the US-Mexico trade relationship can be seen through the exchange of goods, with a prime example being avocados. According to trade statistics from the U.S. Department of Agriculture, the total value of U.S. avocado imports from Mexico reached 2.35 billion in 2019, a slight decrease from 2.64 billion in 2017. Despite the overall decrease, the volume of avocados imported from Mexico surged, with the U.S. importing 1.04 million metric tons, a 15% increase from 900,200 metric tons in 2017. This trend underscores the significance of Mexico as a critical supplier in the U.S. avocado market.

Beyond the simple import of avocados, the U.S.-Mexico trade relationship includes a wide range of other goods. U.S. exports to Mexico in 2018 accounted for 15.9% of overall U.S. exports. Major export categories included machinery at $46 billion, electrical machinery at $43 billion, mineral fuels at $34 billion, vehicles at $22 billion, and plastics at $18 billion. These figures highlight the extensive nature of the trade relationship between the two countries, with Mexico being a significant player in the global market for multiple products.

The Economic Fabric of the Relationship

The relationship between the United States and Mexico is not just monetary; it is deeply rooted in the culture and daily lives of both nations. One prime example is the presence of the American bakery company Bimbo Bakeries USA, the US arm of the Mexican multinational Grupo Bimbo. Based in Horsham, Pennsylvania, Bimbo Bakeries USA is a leading bakery company in the U.S., owning numerous brands such as Entenmanns, Sara Lee, and Thomas. With its extensive presence in the U.S. market and its role as a top advertising sponsor for global soccer teams, Bimbo Bakeries USA stands as a testament to the economic and cultural interdependence between the two nations.

Much of this economic interdependence can be attributed to the Monroe Doctrine, a historical policy that has led to a complex and multifaceted relationship. This doctrine, while aimed at preventing the expansion of European powers in the Americas, has also influenced the way the U.S. interacts with its southern neighbor. The doctrine's legacy has blunted the U.S.'s influence in spreading its model, leading to a state where the U.S. and Mexico coexist in a relationship that is both contentious and mutually beneficial.

Conclusion

The United States and Mexico share a complex and multifaceted economic relationship that is far more nuanced than it may initially appear. The trade of avocados, the cultural exchange through companies like Bimbo Bakeries USA, and the broader economic interdependence underscore the indispensable nature of this relationship. As both nations continue to evolve, so too will their economic ties, solidifying Mexico as a key partner in the America's dynamic trade network.

This article serves as a foundational piece that explores the economic relationship through specific trade sectors and cultural exchanges. It contributes to ongoing discussions about the future of U.S.-Mexico trade and the importance of maintaining a robust and stable relationship in the face of global economic challenges.