As an export orientated country, Mexico is the 15th largest exporter in the world. They are also the United States' second largest export market, making about 12.21 percent of U.S. total exports in 2009. With the signing of the North American Free Trade Agreement (NAFTA) in 1994 with the United States, Mexico's trade economy is heavily linked to the United States', with as high as 80.5 percent for Mexico's exports going to the U.S.
As a result, Mexico's economy suffered greatly during the 2008 global financial crisis and U.S. economic downturn, due to a drop in U.S demand of exports. Mexico's exports to U.S fell from US$234.6 billion in 2008 to $184.9 billion in 2009. GDP (PPP) of Mexico also posted a negative 5.25 percent growth in 2009, a drop from US$1.553 trillion in 2008 to US$1.471 trillion in 2009.
Mexico has also built an extensive network of free trade agreements with over 40 countries, such as the European Union, Japan Israel, and countries in South and Central America. This agreements liberalize the trade tariffs between countries and regions, and have made Mexico one of the most open country to trade. The United States and Canada are the two biggest importer of Mexico's goods.
List of Mexico's FTAs
North American Free Trade Agreement
Costa Rica - Mexico FTA
Nicaragua - Mexico FTA
Chile - Mexico FTA
European Union - Mexico FTA
Israel - Mexico FTA
El Salvador - Mexico FTA
Guatemala - Mexico FTA
Honduras - Mexico
Japan - Mexico FTA
EFTA - Mexico
(EFTA includes Iceland, Liechtenstein, Norway and Switzerland.)
Mexico's Import and Export Indicators and Statistics at a Glance (2010)
Total value of exports: US$303 billion
Primary exports - commodities: manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton
Primary export partners: US (80.5 percent of total exports), Canada (3.6 percent), Germany (1.4 percent)
Total value of imports: US$306 billion
Primary imports - commodities: metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft and aircraft parts
Primary import partners: US (48 percent of total imports), China (13.5 percent), Japan (4.8 percent), South Korea (4.6 percent), Germany (4.1 percent).