Mexico - United Kingdom Trade 2023 Q3: Deficit Widens
Key Market Takeaways: Mexico - United Kingdom Trade
The bilateral trade relationship between Mexico and United Kingdom contracted in Q3 2023, with Mexico running a trade deficit amid volatile demand.
- Economic Pulse: Mexico posted a $124.65M trade deficit with the UK, driven by $726.54M in imports (mixed YoY growth) and $601.89M in exports (consistent YoY declines).
- Exchange Structure: Mexico - United Kingdom trade statistics reveal intra-industry dominance, with HS Code 99 (unspecified goods) accounting for 76.72% of exports and 31.94% of imports, alongside UK machinery (HS 84) and vehicles (HS 87) flowing into Mexico.
- Strategic Interdependence: The UK holds a higher value-add position, supplying industrial equipment, while Mexico’s export profile remains narrowly concentrated.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Mexico-United Kingdom Trade Trend in Q3 2023
Mexico Export Performance: Shipments to United Kingdom
- Total Volume: $601.89M in Q3 2023.
- Growth Trend & Context:
- YoY declines persisted across all months, with July (-40.07%) and September (-1.92%) showing contraction. August (-0.27%) nearly stabilized.
- No trade news to explain the downturn.
- Key Volatility: July saw a sharp MoM drop (-41.62%), followed by a partial recovery in August (+47.38%).
Mexico Import Performance: Sourcing from United Kingdom
- Total Volume: $726.54M in Q3 2023.
- Growth Trend & Context:
- Mixed YoY performance: August (+26.93%) surged, while July (-6.69%) and September (-6.65%) contracted.
- Key Volatility: August imports spiked 27.62% MoM, then plummeted -21.13% in September.
Mexico - United Kingdom Trade Balance & Market Dynamics
- Net Position: Trade deficit of $124.65M (Imports exceeded exports).
- Relationship Status: Mexico remains a net importer from the UK, though the deficit narrowed slightly from Q3 2022 (YoY trends suggest weaker UK export demand).
Mexico Import Trend from United Kingdom 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 221.32M | -14.09% | -6.69% |
| Aug | 282.46M | 27.62% | 26.93% |
| Sep | 222.77M | -21.13% | -6.65% |
| Total | 726.54M | - | - |
Mexico Export Trend to United Kingdom 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 153.82M | -41.62% | -40.07% |
| Aug | 226.70M | 47.38% | -0.27% |
| Sep | 221.38M | -2.35% | -1.92% |
| Total | 601.89M | - | - |
Get Historical Mexico United Kingdom Trade Records
Mexico-United Kingdom Top Trading Products in Q3 2023
Mexico Export Profile: What Does Mexico Sell to United Kingdom
- Top Commodity: HS Code 99 (76.72% share) dominates exports. This likely represents a broad category of unspecified goods, possibly including services or non-classified items.
- Demand Driver: The high concentration in HS Code 99 suggests United Kingdom may rely on Mexico for niche or aggregated trade flows, potentially linked to re-exports or special trade arrangements.
- Concentration: Extreme reliance on one category (76.72%), indicating a lopsided export structure.
Mexico Import Profile: What Does Mexico Buy from United Kingdom
- Top Commodity: HS Code 99 (31.94% share) leads imports, mirroring the export pattern. This could imply bilateral trade in similar or complementary unspecified goods.
- Dependency Nature: The presence of machinery (HS 84, 14%) and vehicles (HS 87, 10.62%) suggests Mexico sources industrial equipment and transport gear from the UK, indicating a technology dependency.
Mexico - United Kingdom Trade Relationship Dynamics
- The Exchange Model: Intra-Industry Trade dominates, with HS Code 99 appearing as the top category on both sides. This hints at complex supply chain linkages or re-export activities.
- Value Chain Position: The UK supplies higher-value machinery (HS 84) and pharmaceuticals (HS 30), while Mexico’s exports are less diversified. The UK likely holds the higher value-add position.
Import Analysis by Product: United Kingdom to Mexico (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 99 | 232.07M | 31.94% |
| 84 | 101.72M | 14.00% |
| 87 | 77.15M | 10.62% |
| 22 | 71.45M | 9.83% |
| 90 | 57.33M | 7.89% |
| 85 | 37.64M | 5.18% |
| 30 | 32.18M | 4.43% |
| 39 | 21.79M | 3.00% |
| 38 | 18.87M | 2.60% |
| 73 | 11.74M | 1.62% |
Export Analysis by Product: Mexico to United Kingdom (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 99 | 461.80M | 76.72% |
| 87 | 45.75M | 7.60% |
| 85 | 32.97M | 5.48% |
| 84 | 17.29M | 2.87% |
| 90 | 16.11M | 2.68% |
| 22 | 13.14M | 2.18% |
| 70 | 6.09M | 1.01% |
| 04 | 1.70M | 0.28% |
| 20 | 1.65M | 0.27% |
| 95 | 962.88K | 0.16% |
Check Detailed Mexico-United Kingdom Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Mexico’s trade with the United Kingdom is likely to remain volatile in Q4 2023, with exports under pressure due to persistent YoY declines and import demand fluctuating unpredictably. The dominance of HS Code 99 in both directions suggests a fragile, highly concentrated trade structure vulnerable to external shocks. However, the UK’s stronger position in high-value machinery and pharmaceuticals indicates Mexico may need to deepen industrial collaboration to stabilize the deficit. Traders should prepare for continued asymmetry, with the UK retaining leverage in value-added sectors.
Strategic Moves
- Diversify Export Categories: Mexican exporters must reduce reliance on HS Code 99 by identifying and promoting secondary commodities, such as automotive parts or agro-industrial goods, to mitigate concentration risk.
- Secure Long-Term Tech Partnerships: Given the UK’s strength in machinery (HS 84) and pharmaceuticals (HS 30), Mexican importers should negotiate strategic alliances to stabilize supply chains and reduce price volatility.
- Optimize Trade Finance Tools: With erratic MoM swings in both exports and imports, businesses should adopt hedging instruments and flexible payment terms to manage cash flow disruptions.
Frequently Asked Questions
How did Mexico - United Kingdom trade perform in 2023 Q3?
Mexico exported $601.89M to the UK in Q3 2023, with YoY declines across all months. Imports from the UK totaled $726.54M, showing mixed YoY growth.
What are the top exports from Mexico to United Kingdom?
HS Code 99 (unspecified goods) dominated Mexico’s exports to the UK, accounting for 76.72% of total shipments.
What does Mexico import from United Kingdom?
HS Code 99 (31.94%) led imports, followed by machinery (HS 84, 14%) and vehicles (HS 87, 10.62%), indicating a focus on industrial and transport equipment.
What is the trade balance between Mexico and United Kingdom?
Mexico recorded a trade deficit of $124.65M with the UK in Q3 2023, though the gap narrowed slightly compared to Q3 2022.
Mexico - United Kingdom Trade 2023 Q2: Balanced Surge
Mexico's $38.56M trade surplus with the UK highlights robust import expansion. Discover Mexico United Kingdom trade trends and top trading product insights via yTrade data.
Mexico - United Kingdom Trade 2023 Q4: $54.82M Surplus
Mexico's United Kingdom trade trend shows a $54.82M surplus in Q4 2023, with HS 99 dominating exports. Explore UK's machinery imports via yTrade data.
