China's loss, Mexico's gain

Interesting article about how manufacturers and importers are contemplating switching from China to Mexico. Great news for Mexico.

http://www.theprovince.com/business/China%2Bloss%2BMexico%2Bgain/4175617/story.html

The Province
BY JASON LANGE, REUTERS JANUARY 27, 201

China's loss, Mexico's gain
Mexico ended 2010 with an estimated 12 per cent of the U.S. import market, its largest share ever. Factory wages are now about 14 per cent higher than those in China, the Mexican finance ministry estimates. In 2002, officials calculate they were 240 per cent higher, cancelling out Mexico's natural advantage of proximity.

Setting up shop in Mexico can be good for U.S. business because Mexican factories tend to buy more U.S.-made components than Chinese ones. Mexico buys nearly twice as many U.S. exports as does China, and anything that creates more demand for U.S. goods eases global imbalances.

Read more: http://www.theprovince.com/business/China%2Bloss%2BMexico%2Bgain/4175617/story.html#ixzz1CL5nrzXy




So why the beef about NAFTA? Appears to to be a win-win for both Mexico and the US.

I wonder if Calzado Canada (Mexico's "largest'") can regain some market share and add workers? Chinese shoes all but killed the Guadalajara company. At one time their fame was so great and their following so great that there were Canada shoe shops in Los Angeles and Chicago, to name a few places.
It is one thing if Mexico gains on China as a provider to the USA, but also I hope they regain share on their home turf.
gm

Chinese shoes are fairly bad quality - at least the ones I've tried. While Mexican shoes - especially Flexi, my favorite, are wonderful. But I guess people go for cheap as opposed to quality.