Trade
Trade Deficit
Also known as: Negative trade balance, Commercial deficit
An economic situation where a country's goods imports exceed its exports during a determined period, resulting in a negative trade balance.
Also known as: Negative trade balance, Commercial deficit
An economic situation where a country's goods imports exceed its exports during a determined period, resulting in a negative trade balance.
A trade deficit occurs when a country imports more goods than it exports, resulting in a negative trade balance. It is not necessarily negative: it can reflect a growing economy with high demand for productive inputs, investment in capital goods, or strong domestic consumption. However, a persistent and growing deficit may indicate competitiveness issues.
Not always. A trade deficit caused by importing capital goods (machinery, equipment) can be positive if it generates future productive capacity. A deficit from excess consumption of finished goods may be more concerning long-term.
Mexico has maintained an overall trade deficit in several recent years, although it has a bilateral surplus with the United States. The deficit is concentrated mainly in trade with Asia (China, South Korea, Japan) and in products such as electronics, machinery, and petrochemicals.
Trade Balance
An economic indicator recording the difference between the value of a country's exports and imports of goods during a determined period.
TradeTrade Surplus
An economic situation where a country's goods exports exceed its imports during a determined period, resulting in a positive trade balance.
TradeDumping
An unfair trade practice of exporting goods at a price lower than their normal value in the domestic market of the country of origin, causing or threatening to cause injury to the domestic industry of the importing country.
TradeNon-Tariff Barriers
Restrictions on international trade other than tariffs, including quotas, permits, technical standards, sanitary requirements, and other obstacles that hinder or increase the cost of importing goods.