The plastics and rubber sector is characterized as an industry that supports other industries. Given that the plastics industry is a relatively new one with a high level of innovation with regard to applications and materials, a large proportion of its manufactured goods are imported into Mexico.
11/02/2008 :: Foreign Trade
Sector exports generally grew between 1993 and 2000 at a rate of 14.7%, which was lower than the growth rate for total exports (18.1%). In the last few years, sector exports have fallen at an annual rate of ?8.2% and ?0.4%, consecutively.
Imports, on the other hand, were more buoyant in the period from 1993 to 2000, registering an average annual growth of 16.6%, which is higher than the corresponding rate for the country's total imports (15.1% in the same period). Like exports, in 2001 imports of plastic and rubber products were down 4.6% compared to the year 2000, but recovery has been predicted for 2002, with imports increasing by 4.7% in terms of annual value up to the month of November (accumulated value last twelve months). Of the total volume traded by this sector, the maquiladora industry accounts for around half in terms of both imports and exports. This high share determines the behavior of exports and imports of plastic and rubber products.
In terms of type of good, 59% of the goods exported correspond to manufactured plastic goods, 23% to plastic resins and the remaining 18% to rubber and manufactured rubber goods. As far as imports are concerned, manufactured goods account for 55%, resins 25% and rubber and manufactured rubber goods 20%. In the case of this sector, the structure of both imports and exports has not been subject to any substantial changes as a result of the signing of the NAFTA agreement, as has been the case in other sectors.
It should be pointed out that three-quarters of the sector exports and imports of the maquila (in-bond) segment are accounted for by manufactured plastic goods, that is to say, products with greater added value. Such products are, for reasons of competitive advantage, transformed in the country and, in the case of imports, incorporated as supplies of final goods so that they may later be re-exported. It should also be mentioned that the US acquires approximately 60% of Mexican exports in this sector.
Recent evolution
In the first eleven months of 2002, sector exports fell 0.4% compared to the same period of the year 2001. The fall in exports of manufactured goods is particularly notable. Exports of rubber and manufactured rubber goods, for their part, were up 4.8%, although, given their relatively small share of total sector exports, this increase was not sufficient to offset the reduced figures in other areas. As far as imports are concerned, there was an increase of 5.1%, with a notable increase in manufactured plastic goods. The foregoing is reflected in the deficit in the balance of trade for plastic and rubber goods, which has systematically been in deficit.
Trend analysis
Exports: After two years in which sector exports have enjoyed greater buoyancy than US imports of plastic and rubber products, their rate of growth has declined considerably since September 2001, plunging into negative figures, which has been the case during 2002. Even though US imports of plastic and rubber products recovered their growth rate again in the second half of 2002, Mexican exports continue to fall, albeit at a lesser rate. This suggests that there may be a reactivation of exports for the year 2003. 
Imports: As can be seen in the graph, since April 2000, the buoyancy of imports of this type of products was less than for the country's total imports. In the year 2001, the rate of growth for imports became negative. As from August 2002, imports were reactivated and growth has since been maintained.
Source: Bancomext