Mexico - Italy Trade 2023 Q3: Deficit & Tech Reliance

Key Market Takeaways: Mexico - Italy Trade

The bilateral trade relationship between Mexico and Italy is marked by a heavy reliance on Italian imports and volatile export performance in Q3 2023.

• Trade Deficit Dominates: Mexico ran a $2.02B deficit, importing $2.20B (mostly machinery/tech) while exporting just $182.91M (79.57% unspecified goods).
• Resource-for-Tech Exchange: Mexico - Italy trade statistics reveal a lopsided structure—Mexico ships low-specificity goods, while Italy supplies high-value machinery (HS 84) and precision instruments (HS 90).
• Asymmetric Dependency: Italy holds the strategic advantage, with Mexico dependent on its advanced industrial inputs, signaling limited export diversification.

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

Mexico-Italy Trade Trend in Q3 2023

Mexico Export Performance: Shipments to Italy

• Total Volume: $182.91M in Q3 2023.
• Growth Trend & Context: YoY performance was mixed, with August showing an 8.2% increase but July and September declining by -10.22% and -3.6%, respectively. No specific news explains these fluctuations.
• Key Volatility: July saw a 9.09% MoM spike, followed by consecutive declines in August (-3.31%) and September (-6.04%).

Mexico Import Performance: Sourcing from Italy

• Total Volume: $2.20B in Q3 2023.
• Growth Trend & Context: YoY growth was modest (0.84% in July, 12.47% in August, 0.77% in September), suggesting stable demand. No news-driven disruptions.
• Key Volatility: August surged 14.0% MoM, but September dropped sharply (-20.6%).

Mexico - Italy Trade Balance & Market Dynamics

• Net Position: Mexico ran a trade deficit of $2.02B (Imports $2.20B vs. Exports $182.91M).
• Relationship Status: Heavy reliance on Italian imports, with exports playing a minor role.

Mexico Import Trend from Italy 2023 Q3 (Source: yTrade)**

Mexico Export Trend to Italy 2023 Q3 (Source: yTrade)**

Get Historical Mexico Italy Trade Records

Mexico-Italy Top Trading Products in Q3 2023

Mexico Export Profile: What Does Mexico Sell to Italy

• Top Commodity: HS Code 99 (Unspecified goods) dominates with 79.57% of exports.
• Demand Driver: Italy likely uses these for industrial processing or re-export, given the high share of unspecified goods.
• Concentration: Extreme—HS Code 99 accounts for nearly 80% of exports, indicating heavy reliance on a single category.

Mexico Import Profile: What Does Mexico Buy from Italy

• Top Commodity: HS Code 84 (Machinery, nuclear reactors, boilers) leads with 27.64% of imports.
• Dependency Nature: Critical technology dependency, as machinery and high-tech goods (HS 84, 85, 90) dominate the top imports.

Mexico - Italy Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Mexico exports unspecified goods (likely raw/intermediate) while importing high-value machinery and tech from Italy.
• Value Chain Position: Italy holds the higher value-add position, supplying advanced machinery (HS 84, 85) and precision instruments (HS 90), while Mexico’s exports are less specialized.

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 relationship is expected to remain volatile in the near term, with Mexico’s export sector facing inconsistent demand while imports of Italian machinery and tech goods stabilize. The persistent trade deficit ($2.02B in Q3) underscores Mexico’s reliance on high-value Italian imports, a trend unlikely to reverse without structural shifts. However, Italy’s steady demand for unspecified goods (HS Code 99) suggests a floor for Mexican exports, provided suppliers can mitigate month-to-month fluctuations. Traders should prepare for uneven growth, with potential upside if Mexico diversifies its export portfolio beyond raw materials.

Strategic Moves

• Secure Long-Term Contracts for Critical Imports: Given Mexico’s heavy dependence on Italian machinery (HS 84) and precision instruments (HS 90), importers should lock in pricing and supply agreements to hedge against volatility.
• Diversify Export Offerings Beyond HS Code 99: Mexican exporters must reduce reliance on unspecified goods by identifying and promoting niche products where Italy lacks domestic supply, such as automotive components or agro-processed goods.
• Monitor Italian Industrial Policy Shifts: Italy’s manufacturing sector drives demand for Mexican inputs—tracking changes in Italian subsidies or trade incentives will help exporters anticipate demand swings.

Frequently Asked Questions

How did Mexico - Italy trade perform in 2023 Q3?

Mexico's exports to Italy totaled $182.91M, with mixed YoY growth, while imports from Italy reached $2.20B, showing modest YoY increases. The trade balance showed a deficit of $2.02B for Mexico.

What are the top exports from Mexico to Italy?

The top export from Mexico to Italy is HS Code 99 (Unspecified goods), accounting for 79.57% of total exports, likely used for industrial processing or re-export.

What does Mexico import from Italy?

Mexico primarily imports machinery, nuclear reactors, and boilers (HS Code 84), making up 27.64% of imports, along with other high-tech goods like electronics and precision instruments.

What is the trade balance between Mexico and Italy?

Mexico recorded a trade deficit of $2.02B with Italy in Q3 2023, driven by significantly higher imports ($2.20B) compared to exports ($182.91M).