Mexico - Japan Trade 2023 Q3: Tech Imports Dominate

Key Market Takeaways: Mexico - Japan Trade

The bilateral trade relationship between Mexico and Japan reflects a heavy reliance on Japanese imports amid volatile export performance in Q3 2023.

• Economic Pulse: Mexico ran a $4.23B trade deficit with Japan, with exports ($918M) dwarfed by imports ($5.15B). Growth was erratic—exports saw mixed YoY swings, while imports cooled after a strong July surge.
• Exchange Structure: Mexico - Japan trade statistics reveal a resource-for-tech dynamic: Mexico’s top export (48% unspecified goods) suggests raw materials, while Japan dominates with machinery (22% of imports) and high-value tech.
• Strategic Interdependence: Japan holds the higher value-add position, supplying critical inputs for Mexico’s industrial sectors, but export diversification remains a gap.

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

Mexico-Japan Trade Trend in Q3 2023

Mexico Export Performance: Shipments to Japan

• Total Volume: $918.18M in Q3 2023.
• Growth Trend & Context:
  • YoY growth was mixed, with July up 4.1% but August and September down 19.75% and 5.2%, respectively.
  • No specific trade news to explain the volatility.
• Key Volatility: August saw a sharp MoM drop (-17.03%), followed by a partial recovery in September (+6.1%).

Mexico Import Performance: Sourcing from Japan

• Total Volume: $5.15B in Q3 2023.
• Growth Trend & Context:
  • YoY growth was strong in July (+38.88%) but slowed significantly in August (+4.56%) and September (+11.17%).
  • No news to contextualize the shifts.
• Key Volatility: September recorded the steepest MoM decline (-9.89%) after a -5.45% drop in August.

Mexico - Japan Trade Balance & Market Dynamics

• Net Position: Mexico ran a trade deficit of -$4.23B (Exports $918.18M vs. Imports $5.15B).
• Relationship Status: Heavy reliance on Japanese imports, with exports failing to offset the imbalance.

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

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

Get Historical Mexico Japan Trade Records

Mexico-Japan Top Trading Products in Q3 2023

Mexico Export Profile: What Does Mexico Sell to Japan

• Top Commodity: Rank #1 export is HS Code 99 (Unspecified goods) at 48.36% of total exports to Japan.
• Demand Driver: Japan likely imports these goods for industrial processing or niche market needs, given the high share of unspecified items.
• Concentration: Trade is highly concentrated, with the top commodity (HS 99) accounting for nearly half of all exports.

Mexico Import Profile: What Does Mexico Buy from Japan

• Top Commodity: Rank #1 import is HS Code 85 (Electrical machinery) at 22.47% of total imports from Japan.
• Dependency Nature: Mexico relies on Japan for high-tech machinery, indicating a critical technology dependency in sectors like electronics or automotive manufacturing.

Mexico - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Mexico exports unspecified goods (likely raw materials or intermediates) while importing high-value machinery and electronics from Japan.
• Value Chain Position: Japan holds the higher value-add position, supplying advanced machinery (HS 85, 84) and vehicles (HS 87), while Mexico’s exports are less defined, suggesting a lower complexity profile.

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

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

Check Detailed Mexico-Japan Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Mexico’s trade deficit with Japan is expected to persist in Q4 2023, driven by continued reliance on high-value Japanese machinery (HS 85) and limited export diversification. The volatility in Mexico’s exports—particularly the sharp August decline—suggests underlying demand instability, likely tied to Japan’s industrial cycle. However, the partial recovery in September indicates potential resilience in niche sectors. Without structural shifts, Mexico’s trade balance will remain skewed, reinforcing Japan’s dominance in high-tech supply chains.

Strategic Moves

• Diversify Export Basket: Mexican exporters must reduce dependence on unspecified goods (HS 99) by targeting Japan’s demand for agricultural products or automotive components, where Mexico holds competitive advantages.
• Secure Long-Term Tech Contracts: Importers should lock in pricing and supply terms for critical Japanese machinery (HS 85) to mitigate volatility and ensure production stability.
• Leverage Nearshoring Momentum: Mexico should position itself as a gateway for Japanese firms relocating supply chains from China, offering incentives for joint ventures in electronics and automotive manufacturing.

Frequently Asked Questions

How did Mexico - Japan trade perform in 2023 Q3?

Mexico's exports to Japan totaled $918.18M, with mixed YoY growth, while imports from Japan reached $5.15B, showing strong but slowing growth.

What are the top exports from Mexico to Japan?

The top export from Mexico to Japan is HS Code 99 (Unspecified goods), accounting for 48.36% of total exports.

What does Mexico import from Japan?

Mexico primarily imports HS Code 85 (Electrical machinery) from Japan, making up 22.47% of total imports.

What is the trade balance between Mexico and Japan?

Mexico recorded a trade deficit of -$4.23B with Japan in Q3 2023, driven by heavy reliance on Japanese imports.