As we all know (right?), political narratives (
influenced dictated by political incentives) often stray far from reality.
Amazingly, two countries that combined account for less than 4% of the world’s economy (ex the US) buy an astounding 1/3rd of U.S. exported goods!
And who would these two countries be? Well, they’d be Canada and Mexico, the ones we deal with through the much-maligned North American Free Trade Agreement: click charts to enlarge…
P.s. It’s been my experience that going to places like NAFTA (indeed, a far from perfect arrangement) herein risks rebuke from a few readers. As always, I’m happy to listen and I promise to keep an open mind. I only ask that before you pepper me with stats, you investigate the source. For example, one “think tank” that would have us regret this trade agreement is called the Economic Policy Institute. If you come across their data, you’ll want to see who heads the board, and who provides its funding. Here’s a hint:
And if you’re tempted to admonish me for straying from investment topics (I’m certainly open to that as well), please know that ongoing, and improved, international trade is essential to your portfolio’s long-term success.