Mexico's Trade Deficit with Canada Widens

Mexico's trade deficit with Canada grew to $664 million between January and April 2004, due to a significant drop in exports to Canada. The decline in exports led to a 19.84% year-on-year decrease, while imports from Canada increased by 11.55% over the same period. Despite the trade deficit, Mexico remains an important market for Canadian products, with Canada being Mexico's fifth most important trade partner under the North American Free Trade Agreement (Nafta). The impact of the trade deficit highlights the ongoing challenges facing Mexico's trade relationships with its North American partners.

Key Takeaways:

• Mexico's trade deficit with Canada reached $664 million between January and April 2004, due to a 19.84% year-on-year drop in exports to Canada.
• Exports to Canada fell to $786 million during the first four months of 2004, compared to $980 million in the same period of 2003.
• Imports from Canada increased by 11.55% during the same period, rising from $1.29 billion to $1.44 billion.
• In 2003, total sales to Canada reached $2.82 billion, while total imports from Canada exceeded $4.12 billion.
• The North American Free Trade Agreement (Nafta) went into effect on January 1, 1994, and has since become a crucial trade agreement for Mexico.
• Canada is Mexico's fifth most important trade partner, and Mexico is Canada's third most important trade partner under Nafta.

Statistics:

• Trade deficit between Mexico and Canada: $664 million (Jan-Apr 2004)
• Year-on-year drop in exports to Canada: 19.84%
• Increase in imports from Canada: 11.55% (Jan-Apr 2004)
• Exports to Canada (Jan-Apr 2004): $786 million
• Exports to Canada (Same period 2003): $980 million
• Imports from Canada (Jan-Apr 2004): $1.44 billion
• Imports from Canada (Same period 2003): $1.29 billion
• Total sales to Canada (2003): $2.82 billion
• Total imports from Canada (2003): $4.12 billion

Sources:

• Cronica/Corporate Mexico by Internet Securities, Inc.
• COMTEX (http://www.comtexnews.com)