As the U.S.’ neighbors in North America, Canada and Mexico are the logical first stops for Wisconsin companies that are new to exporting. The countries share geographic proximity, cultural ties and a long history of doing business together. Customers in these markets have a high level of trust in U.S.-made products, and the high volume of trading among these countries means potential local partners in these markets are likely to be well-versed in handling logistical and regulatory issues that may arise. The North American Free Trade Agreement means that little to no duties are applied to Wisconsin’s exports into these countries. Any negotiation or modification of NAFTA will hopefully lead to even more trade within the highly integrated North American network. Scroll down for more information about these markets.
No two countries are as closely integrated as the U.S. and Canada. Not only do they share the longest international border in the world, but they also share the largest and most comprehensive trading and investment relationship in the world. Nearly $2 billion in bilateral trade crosses the border every single day. Proximity, ease of doing business, a common business culture and rule of law contribute to the already significant bilateral trade base and will ensure that the market will be receptive to U.S.- and Wisconsin-made goods and services in the coming years. This unique trade and investment relationship is based on an increasingly integrated supply chain; on co-production of new technologies; and on the positive flow of people, talent and ideas.
Mexico was the destination for $230 billion in U.S. exports in 2016. Wisconsin ranks 12th among the 50 states in exports to Mexico, and shipped over $3 billion worth of products there in 2016. Mexico is the state’s #2 export market, following Canada. According to the Mexican publication El Economista, the economies of 26 of the 32 Mexican states have been expanding. The state of Queretaro showed the highest level of growth, followed by Guanajuato. The three largest cities – Mexico City, Monterrey and Guadalajara – are also growing at a pace above the national average. Opportunities exist for Wisconsin exporters in the manufacturing, food and beverage, water technology and aerospace sectors. Mexico is the seventh-largest car maker in the world, and major automotive manufacturers are increasing their investments, creating opportunities in the second- and third-tier supplier markets.
The views or opinions expressed here are solely those of the author(s) and do not reflect those of WEDC. WEDC is not responsible for the contents nor does WEDC guarantee the accuracy, completeness, timeliness or reliability of this information.