Measuring the final goods trade between Mexico and the United States is vital but not sufficient. The author turns to recent databases on intra-industry and intra-firm trade, routes of intermediate goods and trade in value added to show how deep commercial integration is in North America.
The effect of the transfer of operations from the United States to Mexico by transnational companies has been widely documented. Various studies show that the benefit to employment, sales and investment has been mutual. The results of one of those studies are set out here.
It suits certain politicians to present Mexico as a failed State and a threat. Nothing could be further from the truth. Originally published in the Wall Street Journal,1 this article dismantles a series of myths about Mexico in areas such as lack of safety, the effects of commercial integration and migration.