Fed: Threat to Mexico's U.S. exports is not from China
By UNITED PRESS INTERNATIONAL
Published December 23, 2004
DALLAS -- The biggest threat to Mexico exporting to U.S. markets is a downturn in the U.S. economy, the Federal Reserve Bank of Dallas said Thursday.
In a report on Mexican exporters, the regional Fed said the fall in demand for Mexican goods in the United States since 2001 was more a result of the U.S. economic slump. It did, however, acknowledge many analysts were concerned Mexico was losing ground to China, as demand for Chinese goods continues to grow.
The regional Fed concluded: "Mexico's recent downturn has very little to do with China. China, in fact, should be the least of Mexico's concern," especially as the countries most threatened by China's surge are other Asian countries, and not Mexico.
Moreover, Mexico has had a firm foothold in the United States that was somewhat shaken during the U.S. economic downturn over the past few years, while China is still building up its outreach , the Dallas Fed said.
"The downturn in Mexican exports results primarily from the recent manufacturing recession in the United States. And given Mexico's litany of truly pressing problems, China should be the least of the country's concerns," the regional Fed concluded.
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