The super-capitalists in this group are going to be selling all the old arguements. How free trade is the end-all and be-all of marketing. I have one question they can't answer. After 10 years of NAFTA and GATT what are these nations buying from us that represents true free trade? And, do these other nations impose no tarrifs on goods from America?
Trade with Mexico is actually (as I said above) one of the more healthy agreements we have although its not perfect.
Profitability is the game. Real revenue numbers are a different ball of wax.
For example if we sell goods in China the profit margins are very low. There is hardly anything such as a mark up in their market. So, if you make something that costs $1m to make and end up with only $1m in the end, you haven't made any money. Margins are what is on top of the $1m in the end.
In Mexico margins are MUCH higher and hence contribute much more to profits.
Now on top of that there is higher volume as well as higher margins in Mexico. We sell over $100 billion dollars worth of stuff to Mexico. We sell just around $15 billion to China. Yet, we import almost just as much from China as Mexico. I ask you, which one is a better trade partner?
Overall it results in that with Mexico for every dollar we import for one reason or another we have a 75 cents (plus) real export opportunity. That means goods actually made in the US actually get sold in Mexico and at a profitable margin.
Not all trade is bad at all, some trade relations though are unfair and not very good though. Its a case by case situation.