A Busy Intersection
Thus far, 2001 has proven to be a difficult year for manufacturers on both sides of the U.S.-Mexico border. Margins remain thin, energy costs remain high in some areas, orders are down for many manufacturers and the competition from imported goods is stiff.
Despite the slowdown, raw materials and finished goods continue to be bought, sold and shipped. While the overall volume is down in both the U.S. and Mexico, trade between the two nations shows no sign of slowing down.
As Carlos Rovelo documents in his story for this year’s Latin-American Markets Supplement, the commercial border crossings between the two nations remain hubs of activity. Just as the architects of the North American Free Trade Agreement (NAFTA) envisioned, trade between Mexico and the U.S. has flourished.
The downside is that the economic slump has also brought about deals that crashed on the rocks of non-payment and bad credit. A company on one side of the border that is burned by a company on the other may walk away from the experience with a bitter "they can’t be trusted" attitude that will color that company’s actions into the foreseeable future.
Trust, like confidence, is gained slowly. But the numbers seem to be showing that business owners on both sides of the border are gaining trust and confidence in the future of trade between the U.S. and Mexico.
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Explore the September 2001 Issue
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