Transcript MBDA International Day Mexican presentation

Business Between Mexico and the U.S.
U.S. Department of Commerce
Minority Business Development Agency
March 10, 2010
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A Snapshot of Mexico
Population:
107 million (11th )
Surface:
1,958,000 km2 (13th)
GDP:
$1.1 trillion (13th )
Exports:
$300 billion USD(15th ), # 1 in Latin America,
Mexico exports more than Brazil, Argentina, Paraguay,
Costa Rica and Uruguay combined!
Foreign Investment:
Annual flows of over $20 billion*
International Reserves:
$75-80 billion dollars
Income p/capita:
$10,747 dollars
Universities:
2,363 institutions, 2.7 million enrolled students w/ 539,640
Undergraduates (28.4% in Engineering & Technology)
Life expectancy:
75 years (85 once 65 birthday).
* 2009 not considered
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Size of the Economy GDP
(Mexico: $250 billion in 1995)
2008 billion dollars
1. U.S.A.
2. Japan
3. China
4. Germany
5. France
6. U. Kingdom
7. Italy
8. Russia
9. Spain
10. Brazil
14,441
4,910
4,327
3,673
2,866
2,680
2,313
1,676
1,601
1,572
11. Canada
12. India
1,499
1,206
13. México
1,088
14. Australia
15. Korea
16. Netherlands
17. Turkey
18. Poland
19. Indonesia
20. Belgium
1, 013
929
876
729
527
511
506
Source: International Monetary Fund
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GDP (PPP) Per Capita 2008
Selected Countries (Dollars)
Source: International Monetary Fund
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Free Trade Agreements Network with 44 countries
European Association of Free Trade Iceland, Liechtenstein, Norway and Switzerland
European Union (EU)
NAFTA
Japan
Honduras, El Salvador
and Guatemala
MEXICO HAS PROMOTION AND
RECIPROCAL PROTECTION
AGREEMENTS FOR INVESTMENT
WITH 24 COUNTRIES ****
•Austria, Belgium, Cyprus, Denmark, Slovakia, Slovenia, Estonia, Finland, France, Greece, Germany, Hungary, Ireland, Italy, Latvia,
Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Republic of Bulgaria, Romania, Slovakia, Sweden.
* On January 1st, 2007 Bulgaria Republic y Rumania.
** On November 19th, 2006 Venezuela is no longer part of G3 Free Trade Agreement.
*** Economic Agreements (ACEs)
**** Germany, Iceland, Argentina, Italy, Australia, Netherlands, Austria, Panama, Korea, Portugal, Cuba, United Kingdom, Denmark,
Czech Republic, Spain, Sweden, Finland, Swiss, France, Trinity and Tobago, Greece, Union Belgo-Lux, India, Uruguay
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Leading Exporters
2008 ($ Billion)
1. Germany
2. China
3. U.S.A.
4. Japan
5. Netherland
6. France
7. Italy
8. Belgium
9. Russia
10. U. Kingdom
1,465
1,428
1,301
782
634
609
540
477
472
458
11. Canada
12. Korea
13. Hong Kong
14. Singapore
15. Saudi Arabia
16. México
17. Spain
18. Taiwan
19. U. Arab Emir.
20. Switzerland
456
422
370
338
329
292
268
256
232
200
Source: World Trade Report. WTO, July 2009
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Mexico’s Main Exports
1982
Manufacturing 19%
2008
Oil 77%
Manufacturing 80%
Agriculture 2%
Agriculture 4%
Oil 18%
Source: SE, Banxico
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Bilateral Trade Mexico-U.S.
Exports
$40 billion (1993)
$176 billion (2009)
Imports
$42 billion (1993)
$129 billion (2009)
Bilateral Trade of 850 million dollars a day!
Source: SE, US Census
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U.S. Exports to Mexico
(Billion dollars)
NAFTA
Source: SE, USDOC
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U.S. Trade with México, Latin America and the E.U
U.S. Trade with México, LA and U.E.
350
300
250
200
150
100
50
0
Latin America
Mexico
Latin America
European Union
European Union
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Latin America Market: U.S. X’s $238.8 billion (22.6%)
U.S. X’s to E.U.: $220 billion (20.8%)
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Mexico
Brazil
Chile
Venezuela
Colombia
Argentina
Dominican Republic
Peru
Costa Rica
Panamá
128,997
26,175
9,365
9,359
9,457
5,559
5,270
4,925
4,704
4,358
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Ecuador
Guatemala
Honduras
Bahamas
Netherlands Antilles
El Salvador
Trinidad & Tobago
Jamaica
Paraguay
Nicaragua
3,927
3,900
3,384
2,455
2,130
2,019
1,989
1,448
1,352
1,094
Source: U.S. Census
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NAFTA & Mexico
• All tariffs and quantitative restrictions between the U.S.,
Canada & Mexico were eliminated on January 1, 2008
• Nafta links 444 million people, producing $17 trillion of
goods & services
• Trade between the U.S., Canada & Mexico exceeds U.S.
trade with the E.U. and Japan, combined!
• U.S. exports to Mexico & Canada rose from $142 billion,
in 1993, to $334 billion in 2009
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NAFTA Impact on U.S. States exports
• Mexico is a market for over 13% of U.S. exports of agricultural &
food products, 24% of auto parts, 13% of fabricated metal products,
20% of audio & video equipment, 16% of computer equipment, and
21% of electrical equipment & components.
• The 50 U.S. States have significantly increased their exports to
Mexico: 48 of them at least doubling their sales, since NAFTA
implementation.
• Mexico is Illinois’ 2th largest market with $4.3 billion dollars in X’s.
• Illinois X’s to Mexico have grown at an annual average rate of 8.9%
since NAFTA was implemented, growing by 260% in 15 years.
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Mexico accounts for 8% of Illinois X’s world wide.
• In 2008, close to 10,000 jobs were directly related to Illinois X’s of
manufactured goods to Mexico
Source: Ministry of the Economy with data from WISER & USDOC 13
U.S.-Mexico Bilateral Trade
•Mexico is the U.S. third largest trading partner;
•In 15 years, bilateral trade has quadrupled, reaching $367 billion dollars in 2008
•U.S. exports to Mexico grew by 264% in this period
•In 2008, U.S. exports to Mexico reached $152 billion dollars, same amount of
U.S. exports to the U.K. France, Netherlands & Belgium together
•In 2008, Mexico’s accounted for 11.7% of total U.S. exports to the World, three
percentage points more than 1993;
•Bilateral trade is registered from agricultural and food products all the way to
metal goods, machinery, computer & electronics, electrical equipment,
transportation and aerospace products.
Source: Nafta Works, Ministry of the Economy
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Selected products for which Mexico & the U.S.
are each others main suppliers:
MEXICO IS MAIN SUPPLIER
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T.V. Sets
Ignition wiring
Digital processing units
Seats for vehicles
Trucks
Refrigerators
Denim
Beer
Tomatoes
Leaf springs
MEXICO IS LARGEST MARKET
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Gasoline
Components of computers
Engines of vehicles
Cellular phones
Video games
Electrical couplings
Polypropylene
Beef
Printed circuits
Sorghum
Source: NAFTA Works, Ministry of the Economy
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Illinois X’s (2009)
Plastic & Rubber Crop Production
5%
Products
5%
Primary Metal
Manufactures
4%
Fabricated Metal
Products
7%
Elec. Eq.,
Appliances & Parts
8%
Computers &
Electronic Prod.
10%
Processed Foods
11%
Illinois Main X’s to Mexico
Machinery
Manufactures
22%
Chemical
Manufactures
16%
Illinois X’s by Country
Transportation
Equipment
12%
Japan
6%
Australia
6%
Brazil
5%
France
4%
Canada
43%
United
Kingdom
7%
Germany
7%
China
9%
Mexico
13%
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Illinois X’s to Mexico (1993 - 2009)
4,260
3,629
3,555
3,402
2,891
2,393
1,677
1,862
1998
1999
2,105
2,137
2002
2003
1,560
1,290
1,182
1993
1,898
2,461
2,260
1,055
1994
1995
1996
1997
2000
2001
2004
2005
2006
2007
2008
2009
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Main Productive Sectors
Priority Sectors
Promotion
AAA
New
Technology
Aftercare - promotion
Nanotecnology
Biomedicine
AA
Agro
Professional
Services
Tourism
Health
Construction
ElectricElectronic
Automobile
Energy
Aerospace
Autoparts
Agro business
IT
Biotecnology
Medical
Equipment
A
Innovation
Growth
Aftercare
Pharma
Leader
Leather, Footware
Process Foods
Logistics & Infrastructure
Gifts/Toys M.
Metal Manufacturing
Furniture
Mining
Chemical
Traditional
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Blooming Industries in Mexico
Automotive
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Mexico is the World’s 11th largest producer;
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80% of auto parts production is exports to the U.S.;
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Mexico is the US # 1 auto parts supplier.
Aerospace
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214 companies are operating in México;
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20,000 employees and $3.4 billion exports;
Electronics
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Generates 35,000 direct & 110,000 indirect jobs;
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Production of appliances is over $129 million;
Software & IT Services
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Mexico has evolved its IT services considerably, and the government has invested in industry associations and fostered a joint
approach to IT initiatives between the federal and state governments.
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Mexico offers the advantages of proximity, cultural affinity, time-zone alignment, relatively lower costs, limited (if any) visa
restrictions, ease of software and hardware procurement, and preferences available in local trading blocks.
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Mexico has 2,134 IT companies.
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In 2008 Mexico’s software market grew 6% and the IT in 14%.
Medical and Residential Tourism
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Based on the demographic trends, estimates indicate that there is the potential that 10% of American retirees will consider
relocating to Mexico to establish residence and/or to benefit from lower cost of health care services.
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México is the main medical tourism destiny for U.S. citizens, in particular for cosmetic surgery and dental procedures.
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In 2008, Mexico’s medical tourism industry generated an estimated income of 880 MDD.
Renewable Energies
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Mexico developed 2 wind farms in Oaxaca (La Venta I & II) & a hybrid facility in Guerrero Negro w/total capacity of 85.48 MW.
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CFE has five wind power projects in its pipeline (La Venta III and Oaxaca I-IV) that will add 500 MW to the grid before 2011
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There are twelve private projects under development in Oaxaca, with a total capacity of 1,900 MW & four projects B.C. with
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Mexico is Investing in Infrastructure
• Railroads $4 Billion: 1,418 Kms. of railroads, 10 multimodal corridors w/12 intermodal
cargo terminals.
• Ports $6 Billion: Build 5 new ports, modernize 22. Increase container management from 4
to 7 million TEUS & build 13 cruise ship docks.
• Airports $5 Billion: Build 3 new airports, expand 31. There are more than 1,000 airports,
50% offer world class service.
• Telecom $25 Billion: Achieve 24 million users of fixed line, 75 million users of mobile line
coverage and 70 million internet users.
• Water Supply & Sanitation $14 Billion: Increase drinking water to cover 92% of the
population.
• Electricity $34 Billion: Increase generation capacity by 9,000 megawatts, covering 97.5%
of the population.
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Leading Development Sectors for Mexico
• Automotive;
• Aerospace;
• Electronics & Appliances;
• Metal Manufacturing;
• IT, BPO and Software Services;
• Pharmaceutical & Medical
Devices;
• Renewable Energies;
• Medical & Residential Tourism.
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More Good News from Mexico’s Economy
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Motorola just recently opened its first Engineering Design Centre in Monterrey
Sony Corp. established an alliance w/ Taiwan’s Hon Hai Precision for the production of LCD TV’s in Tijuana
Genomma Lab & Televisa agreed to work together in the distribution of personal care products in the U.S.
Cummins Filtration is starting operations in San Luis Potosi
Boehringer Inghelheim has invested more than $100 million in Mexico
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Vitro Cristalglass & Dream Glass are working together in the Spanish market
Minefinders Corp., a Canadian company, is extracting gold and silver in Chihuahua
Mexico has doubled gold extraction since 1998 to reach a total of more than 45,100 kgs.
Bronco Drilling & Carso entered into a JV to provide oil & gas drilling in México and Latin America
Zodiac Aerospace and Manoir Industries will expand their operations in Chihuahua
Mexico and Colombia are going to be producing bio diesel from Jatropha in Chiapas
Nissan will start the production of a new model in Aguascalientes with an investment of $200 million
IBM will invest $20 million to increase its manufacturing capacity at its Technology Campus in Guadalajara
Fraunhofer Solar Energy Institute will assist in the development of solar energy plants in Durango
Baskem and Idesa will develop an integrated petrochemical project with Pemex Gas in Coatzacoalcos
Nestlé will invest $175 million in several projects, including the construction of the world’s largest coffee plant
Golden Dragon is opening a facility in Coahuila to produce high-tech copper tubes for AC
Samsung Engineering has been awarded public contracts for $944 million tghrough 10 years of operation
Takeda Pharmaceuticals recently started operating in Mexico
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ProMexico: Mexico’s Trade and
Investment Agency
• ProMexico is the entity responsible of strengthening
Mexico’s participation in the international economy.
• ProMexico supports the export activities of Mexican
companies and coordinates actions to attract foreign direct
investment.
• ProMexico operates through a network of 52 offices
throughout Mexico and 34 venues in 18 countries.
• ProMexico focus on facilitating communicaction between
economy agents, Ministries of Foreign Affairs, Economy,
Agriculture and Tourism, State governments, Chambers and
Associations, Private Sector, Market Opportunities.
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ProMexico: Mexico’s Trade and Investment Agency
How can we help?
One Stop Shop
Ombudsman
Soft Landing
Government Procedures Advisory
Investor After Care
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Aftercare
Execution
Softlanding
Confirmed
Closing
Negociation
Candidate
Prospect
Opportunities
Follow up strategy for Investment opportunities
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In 15 years Mexico has:
• Increased Per Capita Income (PPP): $10,747 dollars;
• Increased the Size of its Economy: $ 1.1 trillion dollars;
• Strengthened ties w/the World: FTA’s with 44 countries;
• Increased its Exports to the World: $300 billion dollars;
• Increased its Exports to the U.S.: $216 billion dollars;
• Became the U.S. 3rd trading partner and Minnesota’s 5th;
• Increased annual inflows of FDI: $25 billion dollars;
• Reduced Infant Mortality to 15 per 1,000 live births;
• Increased Life Expectancy to 75 years;
• Become a full-fledged democracy.
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ProMexico can be a valuable resource for you!
.gob.mx
225 N. Michigan Ave., Suite 1800
Chicago, Illinois 60601
Tel (312) 856-0316
[email protected]
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