40% of Mexican Exports into US originate in America

Mexican products have plenty of red, white and blue in them.

President Donald Trump tweeted Thursday that America is losing to Mexico on trade.

“It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost,” Trump tweeted, referring to the free trade deal between the U.S., Canada and Mexico.

But trade is more of a two-way street.

Experts like to point out a key fact: 40% of the parts in a typical Mexican product originate in the United States, according to the Commerce Department.

It strikes to the core of how free trade works in North America and flows through supply chains. Certain products are made in the United States, others in Canada and others in Mexico. Assembling the product also happens across borders.
For instance, before a car arrives at a local dealership, its parts already crossed both southern and northern borders multiple times.

All that criss-crossing is a key reason why 6 million U.S. jobs depend on trade just with Mexico, according to the U.S. Chamber of Commerce.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza