The Ministry of Finance of the Republic of China issued a statistical report on the 16th, indicating that Taiwan’s exports to Mexico have accelerated since the beginning of the US-China trade dispute, with a nearly 90% increase in the past 5 years. It is expected to surpass 5 billion US dollars this year and reach a record high.
In recent years, driven by the restructuring of global supply chains, the promotion of nearshore outsourcing models, the tariff-free benefits of the US-Mexico-Canada Agreement (USMCA), and the advantages of Mexico such as relatively low production and labor costs and geographic location, Mexico has become a popular location for foreign investment to expand into the North American market. Taiwanese electronics manufacturers have also set up factories or expanded production lines in Mexico.
According to the Ministry of Finance of Taiwan, except for the impact of the COVID-19 epidemic and international economic conditions in 2020 and 2023, Taiwan’s exports to Mexico have accelerated since the start of the US-China trade dispute, rising from 24.8 billion US dollars in 2018 to 47.5 billion US dollars in 2023, an increase of 91.3% or 22.7 billion US dollars over 5 years. Information and communication technology products contributed the most with an increase of 1.13 billion US dollars (+2.1 times), followed by electronic components with an increase of 560 million US dollars (+1.8 times). These two major categories accounted for an average of 35.6% and 12.8% of Taiwan’s exports to Mexico, mostly used by Taiwanese and foreign-owned factories in Mexico, assembled into finished products and then sold to the United States.
“Basic metals and their products increased by 260 million US dollars (+55.5%), electrical machinery products increased by 130 million US dollars (+84.3%). From January to April, Taiwan’s exports to Mexico reached 1.81 billion US dollars, a record high for the same period in history, with a year-on-year increase of 31.8%. Information and communication technology products surged by 89.0%, benefiting from the emerging technology wave such as artificial intelligence and high-performance computing. The annual export to Mexico is expected to surpass 5 billion US dollars for the first time,” the Ministry of Finance of Taiwan stated.
The Ministry of Finance of Taiwan pointed out that by observing import statistics from Mexico, due to the close economic relationship between the US and Mexico, the United States has a market share of over 40%, followed by mainland China with around 20%. The third to fifth spots have been taken turns by Germany, Japan, and South Korea in recent years, with market shares ranging from 3% to 4%. In the past five years, Taiwan’s exports to Mexico have grown by 73.3%, significantly outperforming the overall growth rate (+28.9%), increasing Taiwan’s market share in Mexican imports. In 2023, Taiwan’s market share was 2.4%, up by 0.6 percentage points from 1.8% in 2018, and its ranking has moved from 8th to 6th place. When observing by usage category, intermediate products account for over 90% of the total imports.