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Because Mexico is not a small, unpopulated, backward country. It is regarded as an Emerging Market, with an ongoing industrialization process. Many items consumed in the United States are manufactured in Mexico, such as plasma TVs, refrigerators or motor vehicles. Also a large part of US oil imports come from Mexico.

On the other hand, Mexico needs capital goods to build all these manufacturing plants and increase its industrial base: machinery, parts and equipment are some of the items in largest demand.

See related questions on specifics of what are the items most traded between the US and Mexico.

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13y ago

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