Chinese Cheap Labor Threatens Mexican Economy

The Arizona Republic reports that growth of Chinese exports are threatening the Mexican economy. While Chinese exports to the United States grew at 29 percent last year, Mexico's increased by a paltry 1.9 percent. And its not just competition for the lucrative American market that is affecting Mexican manufacturers; the Chinese are gaining market share within domestic market sectors as well. China's entry into the World Trade Organization in 2001 means that Mexico has until 2006 to comply with international law by eliminating protectionist tariffs on a range of goods. Dynamic importing firms should be able to take advantage of this rare opportunity. Unfortunately for Mexico's economy, its beleagured manufacturing sector may suffer yet another blow.