México and NAFTA. CSG WEST Annual Meeting (AFBF) Vail, Colorado July 31th 2015

Transcription

1 México and NAFTA CSG WEST Annual Meeting (AFBF) Vail, Colorado July 31th 2015

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6 Nearly 475 million people trade freely in this region. It produces goods and services for 23.4 trillion usd per year.

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11 Aerospace 6.1 bn USD

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14 México and the US traded: 534 billion USD in 2014.

15 Mexico is the leader IMPORTER and EXPORTER in Latin America: 48% of Latam Imports. 52% of Latam Exports.

16 Mexico is: A stable democracy with peaceful elections since 1934 with power changes in all levels and recognition of different parties An economy with global significance GDP over 1.3 trillion USD, 4 th economy in America, but increasing to be the 2 nd. in a short time. Mexico s exports of manufacturing goods already have a 40% US integration, much higher than any other country. Macroeconomic stability with low inflation of 4% annually low levels of debt 33% of GDP and lowest unemployment in OECDs countries with rates of less than 5% Free trade, together with Germany and United Kingdom is one of the most open economies in the world. Mexico is in high technology industries, 126,000 engineers graduated last year, more than 74,000 that graduated in Germany and 59,000 in Brazil.

17 Mexico is: Since 2013 Mexico made 10 structural reforms: labor reform, Educational reform, telecommunications reform, economic competitiveness reform, financial reform, fiscal reform, social security reform, political reform, anticorruption reform, and the energy reform. In possibilities of doing business, I would like to tell you that We are in the same time zone with USA. We can do immediate adaptation of products, 4-5 hours from any place in USA and 4 days of shipment of products from any place from Mexico to USA and Canada. Over 65% of Mexico s FDI comes from USA. Mexico has received the largest amount of FDI in the Aerospace Industry in the last 5 years worldwide. Mexico is among the 7 biggest countries in automotive industry in assembly plants and auto parts.

18 Mexico is: President Peña Nieto launched the infrastructure program for Mexico , amounting 590 billion USD, composed of 473 subprograms: Telecommunications and Transportation Energy Hydraulic Health Tourism Housing and Urban Development All of them to be bided to local and foreign corporations. Actually, Mexico has done important biddings in the energy sector, specially in the fossil energy, where 4 types of drilling oil and gas are to be done; offshore drilling, land drilling, shell gas drilling and deep ocean drilling, plus all other activities and industries involved in these processes.

19 Mexico is: You tell me what you want to do with Mexico and I will be glad to inform you of any sector, opportunities in that sector, introduction to possible partners to joint venture or establish strategic alliances. Yes, we can do many things for you. We can also tell you how to do business and how to prepare yourselves to do the business. How to organize: To have your own lawyer.. To have your accountant and to put him in the same cassette as your lawyer in order for them to work in the best interest of your business in or with Mexico. How to approach the people in Mexico, etc. Differences in business culture sometimes do not help the communication immediately, for example..

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24 Mexico holds 10 Free Trade Agreements with 45 countries 30 Agreements for the Protection and Promotion of International Direct Investment and 9 Comercial Complementation Agreements. Mexico is part of the TPP since 2012: Trans Pacific Partnership 40% World GDP 27% of World Imports 24% of World s Exports Mexico s inclusion in the TPP would be of real value to Washington not only because it could provide an immediate boost to U.S. exports but also because increased Mexican sales to TPP markets would translate into more U.S. exports, a virtuous cycle. Former Secretary of Economy of Mexico. For the TPP: Mexico already holds trade and investment agreements with: Japan; Singapore; Australia and S. Korea, as well as Peru, Chile, the US and Canada.

25 We have to increase the economic, trade and industrial tides of this region with Mexico, there is so much we can do in trade, FDI, strategic alliances, joint ventures, partnerships, Mexico is looking for high technology industries that are competitive and with innovation, in R&D and design and Engineering and Colorado is the place to be for these industries. We are taking measures to integrate North America between our 3 countries. North America must be the number one area in the world to do business and to recover the number 1 industrial area of the world. With the leadership of USA and the complementation of Mexico and Canada, it can be done. Colorado Spring NGA, CONAGO and Canada Premiers, on October 30 and 31, will get together and they will invite Federal authorities, private sector corporations to listen what they want to do for North America for the next years of NAFTA.

26 Remember we are neighbors and there is nothing we can do about it, we will be together for rest of our lives, so let us not regret such a situation but take advantage of it and make the best of it.

27 This presentation has been made with data provided by: Secretaría de Economía (SE). Banco de México. SHCP. INEGI. And slides provided by: Proméxico. THANK YOU!