Transcript 3. WHAT WE WILL OFFER IN THE FUTURE?

AUSTIN, SEPTEMBER 2, 2005
A PATH TOWARDS A MORE SECURE
MANUFACTURING AREA IN NORTH AMERICA
A deliberate and carefully considered invitation
to a win-win proposition
Presented by: Alejandro Dieck
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CONTENTS
I
INTRODUCTION
II
MEXICAN BUSINESS CONDITIONS:
OPPORTUNITIES WE PROPOSE AT PRESENT
III
WHAT’S NEXT? WHAT CAN BE DONE ?
IV
PROSPECTS WE PUT FORWARD
V
FINAL COMMENTS
2
I. INTRODUCTION
HAS NAFTA WORKED ?
3
I. INTRODUCTION
Trilateral trade reached $727 billion dollars last year, 140.8 % higher than
pre-NAFTA levels…
NAFTA: TRILATERAL TRADE
(BILLION DOLLARS)
+ 140.8
688
593
498
302
1993
Source: Ministry of Economy
353
1994
395
1995
727
642
628
653
2001
2002
2003
529
441
1996
1997
1998
1999
2000
2004
4
I. INTRODUCTION
Mexican exports to the U.S. have almost tripled…
MEXICO: EXPORTS TO UNITED STATES
(BILLION DOLLARS)
+ 285.3 %
165
148
140
143
147
2001
2002
2003
120
94
103
81
66
43
1993
Source: Ministry of Economy
52
1994
1995
1996
1997
1998
1999
2000
2004
5
I. INTRODUCTION
Specially, there has been a dramatic growth in bilateral trade, between U.S.
and Mexico…
UNITED STATES: EXPORTS TO MEXICO
(BILLION DOLLARS)
+ 166.7%
111.6
111.4
101.5
97.3
97.5
2002
2003
86.9
71.4
50.8
41.6
1993
Source: Ministry of Economy
1994
78.8
56.8
46.3
1995
1996
1997
1998
1999
2000
2001
2004
6
I. INTRODUCTION
NAFTA has also helped both of our countries to cope storms arising from
financial crisis throughout the last decade
NAFTA
HAS HELPED
ECONOMIES TO DEAL
WITH FINANCIAL CRISIS
7
I. INTRODUCTION
UNITED STATES:
EXPORTS PERFORMANCE DURING ASIAN CRISIS (1996-1999)
US. BILLION DOLLARS
Growth
96-99
1996
1999
US EXPORTS TO MEXICO
56
87
55.3%
US EXPORTS TO ASIA
204
186
- 8.8%
Source: Ministry of Economy
8
I. INTRODUCTION
MEXICO: FOREIGN DIRECT INVESTMENT
(Billions of Dollars; Cumulative 1994-2004=158 bd)
27.7
17.1
11.0
2.6
4.8
4.4
12.8
9.5
12.4
13.4
17.4
15.5
12.3
9.2
4.4
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Ministry of Economy
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CONTENTS
I
II
III
INTRODUCTION
MEXICAN BUSINESS CONDITIONS:
OPPORTUNITIES WE PROPOSE AT PRESENT
WHAT’S NEXT? WHAT CAN BE DONE ?
IV
PROSPECTS WE PUT FORWARD
V
FINAL COMMENTS
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II. MEXICAN BUSINESS CONDITION:
OPPORTUNITIES WE PROPOSE AT PRESENT
COMPLY WITH MOST DEVELOPMENT
COUNTRIES (MDC) ON CRITICAL ISSUES
1
Rule of Law
2
Intellectual Property
3
Anti-Trust Agencies
4
Human Rights
5
Labor Rights
6
Environmental Issues
7
Consumer Protection
11
II. MEXICAN BUSINESS CONDITION:
OPPORTUNITIES WE PROPOSE AT PRESENT
THE TRANSITION TOWARD
A MODERN DEMOCRACY
THE 6 AUTONOMIES
1
The Central Bank
2
The Congress
3
The Judicial Power
4
The Political Party in Power
5
The Electoral Institutions
6
IFAI
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II. MEXICAN BUSINESS CONDITION:
OPPORTUNITIES WE PROPOSE AT PRESENT
IMPROVEMENT BUSINESS CONDITIONS FOR
SUSTAINABLE ECONOMIC GROWTH
1
Investment Grade
2
Labor Force Growth
3
Labor Productivity
4
Industrial Policy Implementation
5
Policy Making to Improve Domestic Economy
6
Sound Financial and Banking Sector
7
Modern Democracy: Transition Towards
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II. MEXICAN BUSINESS CONDITION:
OPPORTUNITIES WE PROPOSE AT PRESENT
DEEPER AND TRUER COOPERATION…
NORTH AMERICAN DEVELOPMENT BANK (NADBANK)
It is an International financial institution created with the
purpose of financing environmental infrastructure
projects.
The NADBANK is one of the best ways our two governments
can contribute to enhance the benefits of NAFTA and to
make sure we have an efficient physical infrastructure,
especially at the border.
We need to increase investments in border infrastructure
like transportation, housing, environmental protection,
water and wastewater treatment, along with the
strengthening of local institutions.
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II. MEXICAN BUSINESS CONDITION:
OPPORTUNITIES WE PROPOSE AT PRESENT
BORDER ENVIRONMENT COOPERATION
COMMISSION (BECC)
Their primary roll is to provide technical assistance to
border communities and to certify environmental
infrastructure projects in the border region for financing
consideration by the NADBANK and other sources
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II. MEXICAN BUSINESS CONDITION:
OPPORTUNITIES WE PROPOSE AT PRESENT
We need to enhance security and facilitating trade…
FREE AND SECURE TRADE (FAST)
Program designed to ensure security and safety while
enhancing the economic prosperity of both countries.
FAST is already working in Texas, specifically in the US
cities of El Paso, Laredo, Hidalgo and Brownsville.
CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT)
Initiative between government and business designed to
protect the security
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CONTENTS
I
INTRODUCTION
II
MEXICAN BUSINESS CONDITIONS:
OPPORTUNITIES WE PROPOSE AT PRESENT
III
WHAT’S NEXT? WHAT CAN BE DONE ?
IV
PROSPECTS WE PUT FORWARD
V
FINAL COMMENTS
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III. WHAT’S NEXT? WHAT CAN BE DONE?
Construct real and effective avenues of integration,
cooperation and alliances
Involve universities, enterprises, associations, research
centers, to profit from the growing market of the region
Coordinate efforts to foster the regional automobile
sector
Coordinate efforts to foster every other regional
opportunity, particularly in the manufacturing sector
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III. WHAT’S NEXT? WHAT CAN BE DONE?
Create the Pro-America Financial Intermediaries
Association that will facilitate the (financial) resources
allocation to areas where they are scarce and hence
expensive
Design mechanisms by which Mexican companies or
individuals could be considered eligible for applying to
programs where minorities have some preferences
Design mechanisms to promote consumption of goods and
services of the region
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CONTENTS
I
INTRODUCTION
II
MEXICAN BUSINESS CONDITIONS:
OPPORTUNITIES WE PROPOSE AT PRESENT
III
WHAT’S NEXT? WHAT CAN BE DONE ?
IV
V
PROSPECTS WE PUT FORWARD
FINAL COMMENTS
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IV. PROSPECTS WE PUT FORWARD
POSITIVE OUTLOOK WHEN
STRUCTURAL REFORMS OCURR
FISCAL
1
• Sound Policy
• Growth Oriented
ENERGY
3
LABOR
2
• More Flexible Labor
Market
• A World Class Competitive
Energy Sector
TELECOMMUNICATIONS
4
• Improved Level of
Competition in the Sector
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IV. PROSPECTS WE PUT FORWARD
SECTOR WIDE INVESTMENT OPPORTUNITIES
MANUFACTURING
1. AGROBUSINESS
2. FOOD AND BEVERAGES
3. AUTOMOTIVE AND AUTOPARTS
4. PAPER
5. STEEL
6. SHOES
SERVICES
1. CONSTRUCTION (HOUSING)
2. FINANCING
3. ENVIRONMENTAL CARE
4. REAL ESTATE
5. FISHING
6. TOURISM
7. GOVERNMENT PROCUREMENT
8. ENERGY
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CONTENTS
I
INTRODUCTION
II
MEXICAN BUSINESS CONDITIONS:
OPPORTUNITIES WE PROPOSE AT PRESENT
III
WHAT’S NEXT? WHAT CAN BE DONE ?
IV
PROSPECTS WE PUT FORWARD
V
FINAL COMMENTS
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FINAL STATEMENTS
Globalization itself is changing; so does the way we
need to adjust to it
Other economic areas have shown more aggressiveness
on the matter
Limited progress could be explained by the priority
security has gained since 9-11
We have before us an opportunity to set an example
that can be emulated by other states in the Union
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2005
ALEJANDRO DIECK
Chief of Staff of the Minister of Economy in Mexico
+52(55)5729-9149 & 50
e-mail: [email protected]
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