In a remarkable turnaround, the U.S. deficit with Mexico has been larger than the deficit with China for three of the last five months and four of the last seven.
According to Forbes.com, the annual U.S. deficit with Mexico would be the United States’ largest for the first time were it not for the surge of U.S. imports from China that occurred back in January, the largest monthly deficit in three years.
This comes as Mexico is this year going to surpass Canada as the No. 1 buyer of U.S. exports, the first time the United States’ northern neighbor will not rank first in 34 years. Mexico has been the top U.S. trade partner and the top source of U.S. imports for the last two years.
Given that the U.S. export and deficit figures are new developments, they add heft to the importance of the six-year USMCA joint review, initially scheduled to begin next summer but already underway.
Click here to read the complete, original article by Ken Roberts on Forbes.com
Source: Forbes.com
