[thephyber]

> The competitive advantage for clothing, toys, and furniture factories there eventually diminishes.

Perhaps, but Mexico has a ton of advantages that lots of other countries don't. They have cheap labor and can source parts quickly and cheaply from the USA.

Mexico has low-friction trade agreements with something like 40 other countries. In an age where America's government is demanding to renegotiate trade deals and do them all outside the WTO and rejecting all 3+ lateral deals, Mexico's trade policy stability is still an advantage over the current US policies, even if they lose some wage benefits.