Mexico’s growing middle class, which is quickly becoming the nation’s majority, is buying more U.S. goods than ever. Trade between the U.S. and Mexico is booming, up 17 percent in 2011 to a record $461 billion as Mexico vies with China to become America’s second-largest trading partner after Canada.
According to the Washington Post, Governor John Hickenlooper marveled at a Costco while on a recent trade mission to Mexico, describing the store as “as big, clean, and modern as any in America.” Hickenlooper added that shoppers held “nothing but positive feelings toward the United States,” as they stocked up on products imported from their northern neighbor. Mexico imports $755 million in goods from Colorado alone each year, including steak, pinto beans, and russet potatoes.
The roaring trade relationship between the U.S. and Mexico is due largely to Mexico’s economic success. Richard Fisher, president of the Federal Reserve of Dallas, applauds Mexico for controlling inflation, balancing budgets, and managing debt. “Not only is Mexico doing better macroeconomically speaking, than the false stereotypes would have us think, Mexico is actually doing better than the United States,” said Fisher.
Mexico still has much to do, as illustrated by the World Bank’s 2012 annual report “Doing Business,” which measures benchmarks such as enforcing contracts, paying taxes, and protecting investors. Mexico finished 53rd among 183 countries. However, trend lines are up, especially with the plethora of stores emerging for the growing middle class.