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What are the benefits of trade between Texas and Mexico?

Updated: 8/17/2019
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Texas is a state that belongs to an industrialized nation - the United States - that specializes among other things, in exports of capital goods and high-tech equipment such as industrial machinery, motor vehicles and parts, telecommunications equipment and semiconductors.

On the other hand, Mexico is a developing country that is growing and needs such capital goods to develop its infrastructure and to manufacture the consumer goods that it then exports to other countries such as the United States itself, Canada and Japan.

Texas and Mexico are bordering each other. Both countries have a common "end market" - each other - that allows for natural business associations. For example, Texas produces semiconductors that are exported into Mexico. Then Mexico assembles full computer servers with such components and then exports them into other markets, such as Canada and Brazil.

Texas has vast regions of semi-arid terrain, while Mexico has a subtropical climate. Mexico cultivates Oranges, apples, table grapes, tangerines, grapefruit, pears and raisins; followed by bananas, mangoes, lemons, limes, watermelons, peaches, nectarines, plums, avocados, pineapples, and strawberries. Much of this fruit is exported to the United States - including Texas - during the winter season.

The European Union is a block of 27 states that combined, have more population and a bigger economy than that of the United States. To prevent Mexico and Canada falling into the European Union's "sphere of influence", the United States pushed for closer economic integration through the North American Free Trade Agreement (NAFTA) which increases trade among its member states.

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Q: What are the benefits of trade between Texas and Mexico?
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