Despite some concern over turbulence in U.S.-Mexico relations following Donald Trump's election, America's economic ties with Mexico are continuing to deepen. Last week, Mexico overtook Canada as the number two top exporter to the U.S. for the first time ever. Shipments from Mexico totaled $245 billion in the first 10 months of the year, ahead of Canada’s $230 billion, Bloomberg reports. The two countries tied for second in exports to the U.S. in 2015, behind China.
Car manufacturing is contributing much of the trading partnership's growth. Over the past six years, large auto companies like Toyota, Volkswagen, BMW, and Kia have opened new factories in Mexico — a total of $25.9 billion in new auto investments since 2010. The increased production has fueled $90 billion worth of car shipments from Mexico to the U.S., compared with Canada's $54 billion.
While Canadian labor costs have swelled 64 percent since 2002, Mexico's average salaries rose just 0.5 percent a year in the last decade.