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Mexico and Taiwan are important trading partners

Mexico and Taiwan are important trading partners

Since Taiwan opened an economic and cultural office in Mexico 1993, the two countries have become close and prolific trading partners. Ties between Mexico and Taiwan have become diverse and deep.

Since Taiwan opened an economic and cultural office in Mexico 1993, the two countries have become close and prolific trading partners. Ties between Mexico and Taiwan have become diverse and deep.

A global economic force

The island nation located off of China’s mainland ranks number sixteen globally, when measured by Gross Domestic Product, or GDP. Its per capita income of US $48,000 surpassed that of other developed nations such as Australia, Sweden, the UK, England, Japan and Korea in 2015, and, according to the International Monetary Fund, its economy is the fifteenth most competitive when compared to that of the world’s other nations. In the Asia-Pacific region, Taiwan is ranked at number four. In terms of its economic dynamism, in 2015 the country was ranked number one on the Global Entrepreneurship Index (GEI). Taiwanese business acumen and energy has resulted in an annual average GDP growth of 8% over the last three decades.

Mexico and Taiwan are important investment and trade partners. Taiwanese businesses have contributed a total of three billion dollars in direct foreign investment towards Mexico’s economic development, and have started up approximately three hundred companies that employ a total of more than sixty thousand Mexican workers. This level of participation in the Mexican economy makes Taiwan the former’s third most important Asian investor and its ninth largest trading partner worldwide. Annual exchange in goods and services between Mexico and Taiwan totals seven billion dollars annually.

Expanded trade ties would benefit both nations

Because of the significant economic relationship that exists between Mexico and Taiwan, Taiwanese officials have expressed their desire to eventually be admitted as the thirteenth signatory nation of the recently concluded Trans Pacific Partnership, or TPP, trade accord. Both Japan and the United States have come out in favor of this possibility. Officials in both Mexico and Taiwan are in agreement that Taiwanese participation in the newly established trading bloc would be of mutual benefit to their countries’ respective economies. Taiwan’s participation in commerce among the Pacific Rim partners would enable it to boost its imports of both Mexican livestock and agricultural products, while further ties engendered between Mexico and Taiwian would result in greater exports of electronic components and sub-assemblies to the latter.

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