English: A North American Free Trade Agreement (NAFTA) Logo. Español: Logotipo del Tratado de Libre Comercio de América del Norte (TLCAN). Français : Logo de Accord de libre-échange nord-américain (ALENA). (Photo credit: Wikipedia)

While China’s exports have grown, many have lost sight of  Canada’s other Neighbor. With the Free Trade agreement Goods can flow from Mexico into the US and into Canada. A lot of new US Production has moved to Mexico.

Now it seems that labour costs in Mexico are lower than in China. In 2010 the average wage in China was under $2.00 per hour. I would suspect that it is now still under $3.00 per hour. Wages in China are rising due to worker shortages.

A new report published by Bank of America Merrill Lynch claims that Mexican wages are now lower than Chinese wages. The disparity should continue to increase. China’s labour shortages are the driver to increasing wages in China. Continue reading →