Trade with Mexico is Bringing Wi Unprecedented Economic Growth

posted by Jay Weber - 

via maciverinstitute.com by Matt Tragesser

Despite being known as the dairy state, Wisconsin's top exports to Mexico last year were motor parts and battery waste, followed by centrifuge parts and soybeans.

Increased free trade with Mexico has certainly sparked enormous economic growth for Wisconsin. Apart from the revenue generated from exports, 96,000 jobs in the state have been created or rely heavily on trade with Mexico. Nearly 5,000 of these jobs have been brought to Wisconsin by Mexican companies.

"Mexico is a vital partner to grow businesses and add jobs here in our state. As we've recently seen, Wisconsin is a top target for foreign direct investment that can create jobs and factories in our communities," Lt. Governor Kleefisch told the MacIver Institute.

Free trade between Wisconsin and Mexico has also brought a larger variety of lower-cost products to Wisconsin. Since free trade creates an environment where companies specialize in products that they can cheaply produce in high volumes, goods become less expensive for consumers.

For example, motor vehicles in Wisconsin have become more affordable thanks to trade with Mexico. With a large labor force whose average wage is much lower than other countries, thanks to a very low cost of living, Mexico has become a hot market for vehicle assembly. In Mexico, a worker for a standard car manufacturer will make about $8 an hour, while a worker in the United States can make close to $60 an hour. Mexico's lower average wage leads to lower prices for Wisconsinites and expains why motor vehicles remain one of Wisconsin's top imports for 2016.

Complete story here > Trade between Mexico and Wisconsin up 926% thanks to free trade policies

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