Trade partners and international commercial relationships

¶ … trade in Mexico. The writer explores the nation's dependency on the U.S. And presents plans to reduce that dependency and increase other options. There were five sources used to complete this paper.

As the world continues to globalize many of the previous boundaries that were experienced have been removed. This means advancements in technology, communication, manufacturing and other areas. Mexico is frequently accused of being too dependent on the United States. With the globalizing moves forward there have been many new horizons for the country of Mexico to explore regarding trade. Reducing its dependence on the United States and expanding its interdependence with other nations will provide Mexico with bargaining power when it comes to its dealings with the states in the future.

Within the last decade the trade abilities and clout in Mexico has improved significantly. Whereas Mexico used to be almost exclusively dependent on the U.S., the more recent years and worldwide globalization have changed it all for the better (Giant, 2000). Mexico recently enjoyed the honor of being named as a main trade power in the world. "The World Trade Organization officially labeled Mexico as a one of the main trade powers in the world, with international trade growth of 20% over the last two years (Giant, 2000)."

While it was a compliment to the improved methods that the nation uses for trade it was still dependent on the fact that 90% of its export business is aimed at the United States. For Mexico to maintain its momentum and gain ground in the future it will be essential to develop trade relations with nations outside of the U.S.(Giant, 2000).

There are several reasons for Mexico to improve and step up its trade relations with countries besides the United States. One of the strongest reasons has to do with the dependency on one nation. If Mexico does not move to spread its export and import trade equally among several large nations, while also building constant relations with smaller nations as well it will never build its ability to bargain (Free, 1999). As long as the nation is chiefly dependent on the U.S. The U.S. has power over tariffs, import and export fees and other things. Once Mexico begins to establish itself as a power with a diversified base of business it will have a stronger bargaining table to work with.

One of the most promising future endeavors that Mexico has been developing over the last few years has been its trade relationship with Canada (Canada, 1995). "Free trade was broadened considerably by the U.S.-Canada Free Trade Agreement (CFTA), which came into effect in 1989. The CFTA eliminated many trade barriers and provided for consultative management of trade disputes. CFTA gains were broadened by the signing of the North American Free Trade Agreement (NAFTA), which added new areas of economic activity - additional service sectors and investment - and a new country - Mexico (Canada, 1995)."

Mexico's efforts to measure itself by trade association standards are paying off in its building trade power and the respect that it is gaining worldwide for its efforts.

NAFTA has adopted a mandate that will eliminate all tariffs on Mexican, U.S. And Canadian goods by 2008(Canada, 1995). This is a motivator for Mexico to further develop its trade relationship with Canada. In addition to Canada it is going to be important in the future for Mexico to develop its trade business with South America nations. The South American nations are close enough in proximity to easily export and import Mexico's products. In addition the trade relationship will encourage growth for all parties involved, which will take some of the power from the U.S. And reduce the U.S. ability to set policy for others.

The European market is also developing ties with Mexico for many of its products and services. The changes seen in the Mexican government of late are encouraging signs to the process of international trade according to experts (Sees, 2001).

One of the most prominent things that warrants attention regarding the Mexico trade dependence on the U.S. is the continued work with Europe in the implementation of a Europe-Mexico trade agreement. This opens the door for many European countries to trade with Mexico and Mexico can more fairly distribute its products and not be dependent solely on the United States (Pact, 2001).