Yes,you heard right. The news hit with the shock of a lightening bolt at the recent Canadian-American Business Council Summit. New Hampshire,a state that borders Canada,now does more business with the country located South of the (other) Border,Mexico.
Canadians say they have been worried about this growing trend for years and in 2009,for the first time in history,Mexico actually overtook Canada as New Hampshire’s largest market for exports. Exports to Mexico actually rose 40% this year,which to some may seem puzzling but not so much to those financial analysts who are familiar with the economic story rapidly unfolding South of the Border.
All indications from the financial community is that Mexico is surging out of the global recession with a 4.3% growth rate in the first quarter of 2010 and a 10% increase from just a year ago,much faster than the U.S.,Canada or any other first world country. Moody’s expects similar growth for the entire year. Yes,Mexico is doing quite well.
In fact,Carlos Slim,the Mexican,has now surpassed Bill Gates as “the Richest Man in the World”. Amazingly,New Hampshire saw more than a 330% increase in exports last year,the bulk of which went to the telecommunications industry in Mexico,90% of which is controlled by Slim himself.
Of course,companies from New Hampshire are not the only ones doing business with Mexico. There are now over 18,000 American companies (Starbucks,Walmart,Costco,Lowes,Blockbuster,Office Depot,General Motors,Ford Motors,GE,Xerox,etc.) importing and exporting billions of dollars in goods annually with no end in sight. American businesses are not alone when it comes to investing,buying,building and trading with the burgeoning land South of the Border. Over 6 million Americans spend money south of the border every year and over 1 million American families have now purchased a home in Mexico.
For many financial gurus it comes at no surprise that Mexico is now the #1 trading partner with New Hampshire. For a border state like New Hampshire that has historically had very close ties with Canada,it may indeed seem a little stunning to some. Yet,New Hampshire has made reputation of surprising the world and being the State that has predicted half of the last American Presidents,months prior to their respective elections. Now perhaps,these fiercely independent people may be predicting something else altogether. One thing’s for sure,Mexico is on the rise and may be a much bigger U.S. trading partner than anyone could have predicted,anyone,that is,except New Hampshire.