The narrative on supply chains needs to be challenged a bit, primarily on technicalities.
Mexico might now be the US’ #1 exporter, but a significant part of the background involves the volume of re-exports of what Mexico imports from other parts of the world. In another case, China is exporting at a net increase to SE Asia, but how much volume is intended for free circulation, and how much volume is transiting (where local ordinance may allow for re-packing), versus being purely re-exported to Mexico?
It is known that Chinese intermediate goods are re-exported from Mexico to the United States after final assembly in Mexico. This may even include some “assembly” in SE Asia to qualify for rules of origin.
The narrative on supply chains needs to be challenged a bit, primarily on technicalities.
Mexico might now be the US’ #1 exporter, but a significant part of the background involves the volume of re-exports of what Mexico imports from other parts of the world. In another case, China is exporting at a net increase to SE Asia, but how much volume is intended for free circulation, and how much volume is transiting (where local ordinance may allow for re-packing), versus being purely re-exported to Mexico?
It is known that Chinese intermediate goods are re-exported from Mexico to the United States after final assembly in Mexico. This may even include some “assembly” in SE Asia to qualify for rules of origin.