That means they sold $5 billion more worth of merchandise here than we did there.
It didn’t always used to be like this. In September of 1994 — the last time we had a trade surplus with Mexico — we exported $4 million more of product than we imported. Not a huge surplus, but still a surplus.
And because it wasn’t huge, a good indicator of fairly even trade back and forth between or two nations.
Between 1985 and 1994, we sometimes had a trade surplus and sometimes a deficit, but it was never more than $10 billion annually in either direction.
The North American Free Trade Agreement went into effect in 1994… and our trade deficit ballooned to the point where it hovers around $60 billion a year.
That’s a lot of billions.
Of course our trade deficit with China is ever worse. It hit a record high last year of $367 billion. If Obama succeeds in pushing through the Trans Pacific Partnership before he leaves office, you can expect that number to balloon much like our deficit with Mexico did.
These kinds of persistent and out-of-control trade deficits will eventually impact the economy, destroying jobs and weakening the dollar. Make sure you’re keeping some of your assets in precious metals!
The numbers are scary. You can see for yourself when you click here.