Mexico - Germany Trade 2024 Q1: Widening Deficit
Key Market Takeaways: Mexico - Germany Trade
The bilateral trade relationship between Mexico and Germany shows volatility with a widening deficit in Q1 2024.
- $3.54B deficit for Mexico as imports ($5.30B) far outpace exports ($1.76B), with exports declining YoY (-30.3% in Jan).
- Resource-for-Tech exchange: Mexico ships vehicles (47.22% of exports) while relying on German machinery (25.09% of imports) for industrial needs.
- Asymmetric interdependence: Germany holds the high-value position in advanced manufacturing, while Mexico’s export concentration risks exposure to demand shocks.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Mexico-Germany Trade Trend in Q1 2024
Mexico Export Performance: Shipments to Germany
- Total Volume: $1.76B in Q1 2024.
- Growth Trend & Context:
- YoY decline (-30.3% in Jan, -15.86% in Mar) signals sustained contraction.
- Volatility: January saw a 53.09% MoM surge, but March dropped -11.88% MoM.
Mexico Import Performance: Sourcing from Germany
- Total Volume: $5.30B in Q1 2024.
- Growth Trend & Context:
- Mixed YoY performance (+18.17% in Jan, -6.32% in Mar).
- Volatility: February dipped -4.3% MoM, but March rebounded +4.94%.
Mexico - Germany Trade Balance & Market Dynamics
- Net Position: $3.54B trade deficit (Imports exceed exports).
- Relationship Status: Heavy reliance on German imports, with export recovery lagging.
Mexico Import Trend from Germany 2024 Q1 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jan | 1.79B | 8.07% | 18.17% |
| Feb | 1.71B | -4.3% | 13.73% |
| Mar | 1.80B | 4.94% | -6.32% |
| Total | 5.30B | - | - |
Mexico Export Trend to Germany 2024 Q1 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jan | 567.58M | 53.09% | -30.3% |
| Feb | 634.63M | 11.81% | 1.22% |
| Mar | 559.24M | -11.88% | -15.86% |
| Total | 1.76B | - | - |
Get Historical Mexico Germany Trade Records
Mexico-Germany Top Trading Products in Q1 2024
Mexico Export Profile: What Does Mexico Sell to Germany
- Top Commodity: Vehicles (HS 87) dominate exports, accounting for 47.22% of total shipments to Germany.
- Demand Driver: Germany imports Mexican vehicles to serve its consumer market, likely due to cost competitiveness or specific model preferences.
- Concentration: Trade is highly concentrated, with HS 87 and HS 99 (34.22%) together making up over 80% of exports.
Mexico Import Profile: What Does Mexico Buy from Germany
- Top Commodity: Machinery (HS 84) leads imports, representing 25.09% of total purchases from Germany.
- Dependency Nature: Mexico relies on German machinery and high-tech goods (HS 84, 85, 90) for industrial and technological capacity.
Mexico - Germany Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity. Mexico exports vehicles and other goods (HS 87, 99) while importing machinery and tech (HS 84, 85) from Germany.
- Value Chain Position: Germany holds the higher value-add position, supplying advanced machinery and electronics, while Mexico focuses on vehicle assembly and intermediate goods.
Import Analysis by Product: Germany to Mexico (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 1.33B | 25.09% |
| 87 | 829.33M | 15.64% |
| 85 | 694.01M | 13.09% |
| 99 | 672.14M | 12.67% |
| 30 | 285.92M | 5.39% |
| 39 | 274.92M | 5.18% |
| 90 | 236.73M | 4.46% |
| 73 | 161.28M | 3.04% |
| 72 | 107.28M | 2.02% |
| 38 | 92.79M | 1.75% |
Export Analysis by Product: Mexico to Germany (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 87 | 831.70M | 47.22% |
| 99 | 602.75M | 34.22% |
| 85 | 137.38M | 7.80% |
| 84 | 96.40M | 5.47% |
| 90 | 36.80M | 2.09% |
| 22 | 7.37M | 0.42% |
| 17 | 7.13M | 0.40% |
| 09 | 6.68M | 0.38% |
| 69 | 5.08M | 0.29% |
| 08 | 4.14M | 0.23% |
Check Detailed Mexico-Germany Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast for Mexico-Germany Trade
The Mexico-Germany trade relationship faces near-term headwinds, with Mexico’s exports to Germany likely to remain under pressure due to sustained YoY declines and volatility. However, Germany’s machinery and tech exports to Mexico may stabilize, supported by Mexico’s industrial demand. The $3.54B trade deficit is expected to persist unless Mexico diversifies its export basket or secures higher-value manufacturing roles. Over the next year, rebalancing will depend on Mexico’s ability to move beyond vehicle exports (HS 87) and tap into Germany’s demand for intermediate goods.
Strategic Moves for Traders & Policymakers
- Diversify Export Offerings: Mexican exporters must reduce reliance on vehicles (HS 87) by targeting German demand for aerospace components (HS 88) or medical equipment (HS 90), where Germany has high import needs.
- Lock in Tech Supply Chains: Mexican manufacturers should secure long-term contracts with German machinery (HS 84) and electronics (HS 85) suppliers to mitigate price volatility and ensure stable industrial inputs.
- Leverage Nearshoring Momentum: German firms investing in Mexican manufacturing hubs should prioritize local sourcing to reduce import dependency and narrow the trade deficit.
Frequently Asked Questions
How did Mexico - Germany trade perform in 2024 Q1?
Mexico's exports to Germany declined YoY (-30.3% in Jan, -15.86% in Mar), totaling $1.76B, while imports from Germany rose to $5.30B, creating a $3.54B trade deficit.
What are the top exports from Mexico to Germany?
Vehicles (HS 87) dominate Mexico's exports to Germany, accounting for 47.22% of shipments, followed by other goods (HS 99) at 34.22%.
What does Mexico import from Germany?
Machinery (HS 84) leads Mexico's imports from Germany at 25.09%, alongside high-tech goods like electronics (HS 85) and precision instruments (HS 90).
What is the trade balance between Mexico and Germany?
Mexico faces a $3.54B trade deficit with Germany in Q1 2024, driven by heavy reliance on German machinery and tech imports.
Mexico - Germany Trade 2024 Whole Year: Deficit & Tech Reliance
Mexico's $14.23B trade deficit with Germany highlights a resource-for-tech dynamic, with industrial machinery imports dominating. Explore Mexico-Germany trade trends and top products via yTrade data.
Mexico - Germany Trade 2024 Q2: Widening Deficit
Mexico's trade deficit with Germany hit $4.13B in Q2 2024 as exports declined. Explore Mexico-Germany trade trends and top trading products like vehicles on yTrade.
