MEXICO'S TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00364R000400510009-6
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: November 22, 2010
• Sequence Number: 9
• Publication Date: August 1, 1983
• Content Type: REPORT

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Approved For Release 2011/01/24 :CIA-RDP85M00364R000400510009-6 ~
rff,XICO' S TitF~L1F
Mexico has the potential of becoming a major trading
nation. Tts growing population and oil revenues would indicate
a long-k:er~z gr.c?~?jth in import demand. OrY the export side,
Mexico's comparative advantage seems to lie in production of
manufactured goods based on local primary materials, and in
those products for the U.S. market which require substantial
labor inputs, and moderate transport costs to remain
competitive. Examples are assembly products made from imported
components, r~ietal products, motor vehicle parts, electronic
components anc~ wearing apparel. Mexico encourages exports
through a number of incentive programs.
However, Mexic:o's success as an exporter will continue to
be hampered by trat1sPortation and raw mclterlal bottlenecks, as
well as by shortages of skilled labor. Protecti.or~ist pzessu.r.e~-.
in the U.S. will not help. At the same time, the financial
constraints imposed by declining oil revenues coupled with
Mexi.co's f,rot~,c~ct?,