With the U.S. buying more imports from Mexico than China for the first time in 20 years, many people are now asking if Mexico is the next China.
A semi-trailer loaded with goods to import, drives out of the "Fletes Sotelo" moving company parking lot, in Ciudad Juarez, Mexico , Friday, June 7, 2019.
Mexico's labor costs appear to be cheaper than China's which is of course more incentive to trade with the country.Economists point to rising tensions with China as a key reason why China's imports to the U.S. dropped by 20% last year. Most of the investments we can see in this trade data that are moving out of China are just going to other countries like Mexico, India, or Vietnam. It's not coming back to the United States, despite all the talk that we hear about,” Director of General Economics at the Cato Institute Scott Lincicome told The National Desk’s Jan Jeffcoat earlier this year.
The cartels are responsible for many illegal drugs to the U.S., but they also tax the country's lime and avocado growers., cartels charge growers around $50 per 2.5 acres per month. The cartels offer protection and often take care of the growers' families. It must be noted that major US companies are at risk of purchasing from cartel-linked growers. Household store brands such as Whole Foods, Costco, and Sam’s Club often source their avocados from Michoacán, and are potentially unwitting actors within a drug cartel’s supply chain.
China Imports U.S. Trade Cartels Manufacturing Economists
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