Mexico - Italy Trade 2023 Q2: Deficit & Tech Imbalance

Key Market Takeaways: Mexico - Italy Trade

The bilateral trade relationship between Mexico and Italy is marked by a significant trade deficit and volatile export performance in Q2 2023.

• Economic Pulse: Mexico posted a $2.01B trade deficit with Italy, driven by $2.20B in imports (steady YoY growth) versus $186.42M in exports (mixed YoY performance).
• Exchange Structure: Mexico - Italy trade statistics reveal a resource-for-tech imbalance—Mexico’s exports are hyper-concentrated in HS Code 99 (78.07% share), while imports are dominated by high-tech machinery (HS 84, 25.72%).
• Strategic Interdependence: Italy holds the higher value-add position, supplying critical manufacturing inputs, while Mexico’s export profile suggests limited diversification.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Mexico-Italy Trade Trend in Q2 2023

Mexico Export Performance: Shipments to Italy

• Total Volume: $186.42M in Q2 2023.
• Growth Trend & Context: YoY growth was mixed, with April down -20.72% but June rebounding to +14.17%. No specific trade news explains the volatility.
• Key Volatility: May saw a sharp MoM surge (+41.93%), followed by a -22.41% drop in June.

Mexico Import Performance: Sourcing from Italy

• Total Volume: $2.20B in Q2 2023.
• Growth Trend & Context: YoY growth remained positive (April +12.62%, June +7.41%), suggesting steady demand. No disruptive news to contextualize.
• Key Volatility: Imports peaked in June ($804.99M), with consistent MoM growth (+9.82% in June after +10.11% in May).

Mexico - Italy Trade Balance & Market Dynamics

• Net Position: Mexico ran a trade deficit of $2.01B (Imports $2.20B vs. Exports $186.42M).
• Relationship Status: Heavy reliance on Italian imports, with exports playing a marginal role.

Mexico Import Trend from Italy 2023 Q2 (Source: yTrade)**

Mexico Export Trend to Italy 2023 Q2 (Source: yTrade)**

Get Historical Mexico Italy Trade Records

Mexico-Italy Top Trading Products in Q2 2023

Mexico Export Profile: What Does Mexico Sell to Italy

• Top Commodity: Rank #1 export is HS Code 99 (78.07% share). This suggests a highly concentrated trade in a single category, likely services or unclassified goods.
• Demand Driver: Italy's reliance on this category indicates either industrial processing needs or a niche consumer market demand.
• Concentration: Extreme dominance of HS Code 99 (78.07%) signals a high-risk dependency on one sector.

Mexico Import Profile: What Does Mexico Buy from Italy

• Top Commodity: Rank #1 import is HS Code 84 (25.72% share), representing machinery or nuclear reactors.
• Dependency Nature: High-tech imports (HS Codes 84, 85, 90) point to critical technology dependency, likely for manufacturing or infrastructure.

Mexico - Italy Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Mexico exports a concentrated, possibly low-value category (HS 99) while importing high-tech machinery (HS 84, 85) from Italy.
• Value Chain Position: Italy holds the higher value-add position, supplying advanced machinery, while Mexico's exports suggest a less diversified or lower-complexity output.

Import Analysis by Product: Italy to Mexico (Source: yTrade)

Export Analysis by Product: Mexico to Italy (Source: yTrade)

Check Detailed Mexico-Italy Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Mexico - Italy trade forecast suggests continued volatility in exports, driven by the extreme concentration in HS Code 99, while imports will likely maintain steady growth due to Italy’s dominance in high-tech machinery (HS 84, 85). Mexico’s trade deficit with Italy is expected to widen further unless export diversification accelerates. Traders should brace for erratic demand shifts in Mexico’s key export category, while Italian machinery suppliers can capitalize on Mexico’s reliance.

Strategic Moves

• Diversify Export Basket: Mexican exporters must reduce dependency on HS Code 99 by identifying secondary commodities with Italian demand, such as automotive parts or agricultural goods, to mitigate risk.
• Lock in Tech Imports: Mexican manufacturers should secure long-term contracts for Italian machinery (HS 84) to hedge against price fluctuations and supply chain disruptions.
• Leverage Trade Incentives: The Mexican government must aggressively promote export-ready sectors (e.g., aerospace, pharmaceuticals) to Italian buyers through targeted trade missions and tariff relief programs.

Frequently Asked Questions

How did Mexico - Italy trade perform in 2023 Q2?

Mexico's exports to Italy totaled $186.42M, with mixed YoY growth, while imports from Italy reached $2.20B, showing steady YoY increases.

What are the top exports from Mexico to Italy?

HS Code 99 (78.07% share) dominates Mexico's exports to Italy, likely representing services or unclassified goods.

What does Mexico import from Italy?

Mexico's top imports from Italy include machinery or nuclear reactors (HS Code 84, 25.72% share) and other high-tech goods (HS Codes 85, 90).

What is the trade balance between Mexico and Italy?

Mexico recorded a trade deficit of $2.01B with Italy in Q2 2023, driven by heavy reliance on Italian imports.