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As Ties With China Unravel, US Companies Head to Mexico
New York Times ^ | MAY 31, 2014 | Damien Cave

Posted on 06/12/2014 2:19:05 PM PDT by JerseyanExile

With labor costs rising rapidly in China, American manufacturers of all sizes are looking south to Mexico with what economists describe as an eagerness not seen since the early years of the North American Free Trade Agreement in the 1990s. From border cities like Tijuana to the central plains where new factories are filling farmland, Mexican workers are increasingly in demand.

American trade with Mexico has grown by nearly 30 percent since 2010, to $507 billion annually, and foreign direct investment in Mexico last year hit a record $35 billion. Over the past few years, manufactured goods from Mexico have claimed a larger share of the American import market, reaching a high of about 14 percent, according to the International Monetary Fund, while China’s share has declined.

Many American companies are expanding in Mexico — including well-known brands like Caterpillar, Chrysler, Stanley Black & Decker and Callaway Golf — adding billions of dollars in investment and helping to drive the economic integration that President Obama and President Enrique Peña Nieto have both described as vital to growth.

As that happens, some companies are cutting back in China and heading to Mexico to manufacture an array of products, like headsets (Plantronics); hula hoops (Hoopnotica); toilet brushes (Casabella); grills and outdoor furniture (Meco Corporation); medical supplies (DJO Global); and industrial cabinets (Viasystems Group).

And while in some cases a move to Mexico is tied to job cuts in the United States, economists say that the American economy benefits more from outsourcing manufacturing to Mexico than to China because neighbors tend to share more of the production. Roughly 40 percent of the parts found in Mexican imports originally came from the United States, compared with only 4 percent for Chinese imports, according to the National Bureau of Economic Research, a private research group.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Foreign Affairs; Mexico
KEYWORDS: asia; china; nafta; outsourcing

1 posted on 06/12/2014 2:19:05 PM PDT by JerseyanExile
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To: JerseyanExile

So from the communist party to the drug cartels.


2 posted on 06/12/2014 2:19:47 PM PDT by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: JerseyanExile

Whatever you do, don’t bring jobs back to America.


3 posted on 06/12/2014 2:22:00 PM PDT by 2ndDivisionVet (I will raise $2Million USD for Cruz and/or Palin's next run, what will you do?)
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To: JerseyanExile
"As Ties With China Unravel, US Companies Head to Mexico"

...to stomp on the local competition with their socialist government connections and regulations, just as they did in the U.S.A. over the past 40 years. They already did that in Mexico decades ago--even put Mexican farmers out of business. That's part of the reason for the flood you're seeing now.


4 posted on 06/12/2014 3:10:40 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: JerseyanExile
Related:

How Iceland defeated the Anglo-American Bankster Mafia
https://www.youtube.com/watch?v=7zlzC_XMQzI

Icelanders are doing more productive kinds of work these days--better than government/services-heavy debt slavery and handing national natural resources to foreign global interests. Even commercial fishing in northern seas is better than slavery.

Rough Seas Iceland
https://www.youtube.com/watch?v=QH6OOfh7sFs

As for us, it appears that our bipartisan leadership has chosen the recirculating debt decline and letting foreign global interests take our agricultural, energy and human resources (slavery).


5 posted on 06/12/2014 3:16:29 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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