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June 26, 2019
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Why Mexican products?
Mexico as supplier to Canada
Importing Mexican products

Tariff Duties and Trade Statistics
Relevance of the Mexico-Canada trade relation

Mexico - Canada trade and investment relations

NAFTA: Engine of trade and investment growth

The NAFTA has been a key factor to propel trade and investment between Mexico and Canada to unprecedented levels. In 2010, total trade reached the historical level of US$30.1 billions (bdd), almost six times the 1993 value of US$3.6 bdd, with an annual average rate of growth of 12.5% for this period.

As a result of this bilateral trade boom, currently Mexico is Canada’s fourth largest trading partner worldwide and its first in Latin America, behind the U.S., China and Japan. In terms of the trade balance, Mexico maintains a positive balance, with Mexican exports accounting for almost seven of every ten dollars in the total bilateral trade.

Canada: third largest destination for Mexican exports

Mexico is Canada’s third largest source of imports after the United States and China, and surpassing traditional countries like Japan. In 2010, Mexican exports to Canada grew 1.0 %, compared with the previous year, to reach US$21.4 bdd, an amount equivalent to 5.5% of Canada’s total imports.

Diversification of Mexican exports in the Canadian Market

Mexico has significantly diversified its export supply since 1993, when it exported just 1,000 types of products to Canada. In 2010, by contrast, Mexican exports to Canada comprised almost 4,000 product types, most significantly from the electronics and automotive sectors.

In 2010, the top five Mexican exports to Canada were television sets (7.7% of total Canadian imports from Mexico), automobiles with an engine capacity between 1500 and 3000 cm3 (6.5%), gas-powered trucks weighing less than 5 tons (6.2%), telephones for cellular network or for other wireless networks (5.7%) and process units for storage/input/output units (3.1%).

Furthermore, Mexican products compete successfully in the Canadian market by offering the consumers competitive products in price and quality. As result, México is currently the most important supplier of items such as television sets, autoparts, cigarettes, beer, lamps, and agricultural goods such as tomatoes, peppers, avocados, onions and cucumber.

Mexico: fifth largest destination for Canadian exports

Mexico has become one of the most important markets for Canadian products. In 2010, Mexico was Canada’s fifth largest export market after the United States, United Kingdom, China and Japan, with a value of US$8.6 billion, a 17.9% growth compared with the previous year and 623% when compared with 1993 figures.

Canada’s top exports to Mexico last year were, rape or colza seeds (7.5%), Telephones for cellular networks or for other wireless network engine (4.0%), automobiles with an capacity over 3000 cm3 (3.6%), motor vehicle parts (3.2%), automobiles with an engine capacity over 1500 cm3 (2.9%).

Export patterns show that the two countries are building a strong and balanced trading relationship. In 2010, Canada was Mexico’s leading supplier of rape seeds, bars of alloy steel, smoking tobacco, vehicles, paper, nickel, and birdseeds.

Mexico–Canada trade by province

With respect to the regional distribution of trade, just three of the ten Canadian provinces accounted for the vast majority (88.4%) of bilateral trade in 2010. Ontario was Mexico’s primary provincial trading partner, capturing almost three quarters (73.8%) of total bilateral trade, followed by Quebec (8.2%), Alberta (6.4%), British Columbia (5.7%) and Manitoba (2.7%). This trade pattern also reflects the geographical distribution of people and revenue in Canada, since approximately 90% of Canada's total population and GDP are concentrated in these provinces.

In 2010, 95% of Canada’s total goods shipments to Mexico originated in Ontario (46.9%), Quebec (15.8%), Alberta (15.2%), Saskatchewan (10.2%) and Manitoba (6.9%). On the side of Mexican exports to Canada, Ontario accounted for 79.9% of the country’s Mexico-bound exports, followed by Quebec at 6.5% and British Columbia at 6.1%.

Canadian FDI in Mexico

The Canadian investment in Mexico has been an important factor in the interaction and integration of our productive sectors. Canada’s cumulated investment in Mexico between 2000 and 2010 totalled $9.6 billion, making it the forth largest foreign investor in Mexico after the US, Spain and the Netherlands. By contrast, in 1993, Canada was Mexico’s ninth largest foreign investor behind several European nations.