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Transcript of MEXICO - FLORIDA September 2006 .
MEXICO - FLORIDA
September 2006
www.naftamx.org/fl.htmlwww.naftamexico.org/fl.html
Mexico today
Mexico is a middle-income country with the world's eleventh-largest population.
Mexico's income per capita is larger than all other major economies in the region (7,100 dollars in 2005).
After Brazil, Mexico is the second-largest market in Latin America by population (106.385 millions in 2005)
The average age of the population is 24.7 (2005) and 30% is aged 14 years or under.
This large proportion of young people will represent a pool of effective consumers in the long term.
Mexico is classed by the World Health Organization (WHO) as a "low mortality developing country".
The rate of population growth has slowed from more than 3% (per year) in the 70s to a 1.26% in 2005.
Mexico is the 10th economy in the world.
In terms of territory is the 14th (equals to France, Spain, Germany, Italy and UK all together)
Mexico’s evolution is evident
Gdp
Gdp per capita
Inflation
Interest Rate
Exports
Imports
Trade balance
Public deficit
1987
200
1900
159
120
28
19
7.2
16.1
2005
769
7229
3.3
9.2
214
221
-7.6
0.2
Billions of US dollars
% of Gdp
US dollars
Annual %
Annual %
Billions of US dollars
Billions of US dollars
Billions of US dollars
Nominal wages are growing and real wages are stable. This supports the strengthening of the domestic market
Source: INEGI
Avarage daily base salary of Workers insured at IMSS
(2002-2006, US Dollars)
J uly, 2006
18.39
14.00
15.00
16.00
17.00
18.00
19.00
20.00
20
02
/01
20
02
/06
20
02
/11
20
03
/04
20
03
/09
20
04
/02
20
04
/07
20
04
/12
20
05
/05
20
05
/10
20
06
/03
Real wages in the manufacturing sector
(Annual growth, three-month moving average) May, 2006
0.82%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
20
00
/01
20
00
/06
20
00
/11
20
01
/04
20
01
/09
20
02
/02
20
02
/07
20
02
/12
20
03
/05
20
03
/10
20
04
/03
20
04
/08
20
05
/01
p/
20
05
/06
20
05
/11
20
06
/04
Economic growth and positive expectations translated into a stronger labor market
Source: INEGI
Workers insured at I MSS (Millon workers)
J une, 2006
13.70
12.1
12.3
12.5
12.7
12.9
13.1
13.3
13.5
13.7
13.9
2003/0
1
2003/0
5
2003/0
9
2004/0
1
2004/0
5
2004/0
9
2005/0
1
2005/0
5
2005/0
9
2006/0
1
2006/0
5
J obs Creation(Monthly, Thousand of jobs)
J une, 2006 855
790
747772
657645
590574
531
488447
413
316305
283
176
276249
20
05
/01
20
05
/02
20
05
/03
20
05
/04
20
05
/05
20
05
/06
20
05
/07
20
05
/08
20
05
/09
20
05
/10
20
05
/11
20
05
/12
20
06
/01
20
06
/02
20
06
/03
20
06
/04
20
06
/05
20
06
/06
For the first time in 35 years inflation in Mexico was less than in the U.S.
3.33
3.123
5
7
9
11
13
15
Jan-00M
ar-00M
ay-00Jul-00S
ep-00N
ov-00Jan-01M
ar-01M
ay-01Jul-01S
ep-01N
ov-01Jan-02M
ar-02M
ay-02Jul-02S
ep-02N
ov-02Jan-03M
ar-03M
ay-03Jul-03S
ep-03N
ov-03Jan-04M
ar-04M
ay-04Jul-04S
ep-04N
ov-04Jan-05M
ar-05M
ay-05Jul-05S
ep-05N
ov-05
Consumer Price Index (CPI) and Core Inflation(annual % change)
Core Inflation
CPI Inflation
Upper limit of theInflation target (4%)
December
2005
The stock market recovered strongly due to good expectations of the economic performance in Mexico and the United States
Returns in the Mexican stock market
(nominal and in USD)
Period%
MXP
%
USD
Cumulative January-December 2004 return
46.5 45.6
Cumulative January-December 2005 return
36.7 42.3
Cumulative July 2006 return
12.1 10.2
Source: Banco de Mexico
Source: Nafta with data from BMV
Mexicos's stock market leading index - I PyC
August 23, 2006
20,742.44
5,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000
21,000
23,000
17
/09
/20
01
8/2
/20
02
3/7
/20
02
21
/11
/20
02
16
/04
/20
03
5/9
/20
03
29
/01
/20
04
21
/06
/20
04
8/1
1/2
00
4
30
/03
/20
05
16
/08
/20
05
4/1
/20
06
30
/05
/20
06
As a result of sound economic policies, the economy is strong and stable
Better economic fundamentals, a promising international environment, and more ambitious government programs have contributed to stronger growth and employment
Source: INEGI
Mexico‘s GDP grew 4.7% in the second quarter of 2006, reaching twelve consecutive quarters of growth
1.9
0.2
-1.3-1.4
-2.3
1.91.7
22.4
-0.1
1.0
2.1
3.6 3.7
4.54.8
2.4
3.3 3.4
2.7
5.5
4.7
2001/0
1
2001/0
2
2001/0
3
2001/0
4
2002/0
1
2002/0
2
2002/0
3
2002/0
4
2003/0
1 p
/
2003/0
2
2003/0
3
2003/0
4
2004/0
1
2004/0
2
2004/0
3
2004/0
4
2005/0
1
2005/0
2
2005/0
3
2005/0
4
2006/0
1
2006/0
2
2006 GDP growth by economic sector
(2nd Quarter % change)
SectorSector %%
Total 4.7
Agriculture 7.6
Industry 3.9
Services 4.8
Quarterly Gross Domestic Product(Real annual growth)
Mexico’s country risk is low and stable due to its differentiation from other emerging markets
Source: JP Morgan
Risk indicators for emerging markets(EMBI+ JP Morgan, base points )
Levels at August 18, 2005
150
406
426
0 100 200 300 400 500
Mexico
Brasil
Argentina
Levels at August 18, 2006
111
216
314
0 100 200 300 400
Mexico
Brasil
Argentina
COAHUILA
D.F.
QRO.
HERMOSILLOFORD(PC)
SALTILLOCHRYSLER(ENGINES & UV)
AGS.
NISSAN(PC & ENGINES)
GTO.
G.M.(UV)
SANTIAGOM.BENZ (PC & UV)
SILAO
AGS.
V.W.(PC & ENGINES)
PUEBLA
HONDA (PC) GUADALAJARA
SONORA CHIHUAHUA
G. PALACIO LINAMAR(ENGINES)
MOR.
NISSAN(PC & UV)
CIVAC
BAJA CALIFORNIA NORTE
BAJA CALIFORNIA SUR
SINALOA DURANGO
NAYARIT
ZACATECAS
S.L.P.
TAMPS.
VERACRUZ
COLIMA MICHOACAN
GUERRERO
OAXACACHIAPAS
TABASCO
CAMPECHE
YUCATAN
QUINT
ANA
ROO
HIDALGO
TLAX.MEX.
PUEBLA
NUEVOLEON
RAMOSARIZPE
G.M.(PC & UV)
TOLUCAG.M. (ENGINES)
TOLUCACHRYSLER (PC & UV)
TOLUCABMW (PC)
CUAUTITLANFORD
(PC & UV)
CHIHUAHUA
GARCIA
TULTITLANMASA (TRUCKS)
TOLUCAVOLVO (TRUCKS)
KENWORTH (TRUCKS)
MEXICALI
S.L.P.SCANIA
(TRUCKS)
NAVISTAR (TRUCKS)
JALISCO
TIJUANA TOYOTA
(PICK-UP BOXES
OF TRUCKS)
Clearly distinguish
3 clusters in Mexico
Automotive Industry: Geographic Location
Querétaro VISTAR VITROMATIC (2)
CuernavacaCuernavaca
NEC
Torreón THOMSON
Monterrey PIONNER DANFOSS COMPRESSORS VITROMATIC (3) MABE (2) KODAK NIPPON DENSO (Automotriz) AXA YAZAKI (Automotriz)
Mexicali
SONY DAEWOO(SLRC) MITSUBISHI GOLDSTAR
Aguascalientes WHITE WESTINGHOUSE MEX* TEXAS INTS. XEROX SIEMENS
Querétaro CLARION DAEWOO BLACK & DECKER MABE (2) SINGER SIEMENS
Estado de M Meexicoxico MABE BRAUN ELECTROLUX SUNBEAM KOBLENZ ERICSSON ALCATEL/INDETEL AMP
Puebla GESTAR SINGER VITROMATIC
SaltilloSaltillo MABE HAMILTON
BEACH*
Reynosa
VITROMATIC NOKIA
DELCO (Automotriz) PHILIPS SONY MATSUSHITA (Automotriz)
LUCENT TECHNOLOGIES FUJITSU (Automotriz) CONDURA (Automotriz) DELNOSA (Automotriz)
SanSan Luis PotosíLuis Potosí
MABE GEMABE SANYO
Chihuahua MOTOROLA ALTEL KIOCERA JABIL
Juárez
KENWOOD ELECTROLUX ACER
TOSHIBA PHILIPS THOMSON
ELAMEX PLEXUS
Tijuana SANYO SONY HITACHI MATSUSHITA JVC SAMSUNG PIONNER
SANYO ELECTRODOMÉSTICOS PHILIPS CASIO KODAK CANON KIOCERA INTERNACIONAL RECTIFIER
MITSUBISHI SHARP
Guadalajara
I.B.M H.P. NEC
LUCENT TECHNOLOGIES MOTOROLA KODAK CUMEX SIEMENS SOLECTRON DE MEXICO FLEXTRONICS JABIL CIRCUIT MTI ELECTRONICS SCI SANMINA
Estado de MEstado de Mééxicoxico
ELECTROLUX FILTER QUEEN HOOVER IMAN KOBLENZ MABE PHILIPS SUNBEAM OLIVETTI
PANASONIC
OLIMPIA
Electronic Industry location ……(700 + companies)
AUDIO & VIDEO
ELECTRODOMESTICS
COMPUTERS
TELECOMUNICATIONS
OTHERS
Baja CaliforniaChihuahuaCoahuilaNuevo LeónTamaulipasSan Luis PotosíGuanajuatoQuerétaroJaliscoEdo. de MéxicoDistrito FederalTlaxcalaPuebla
Home Appliances IndustryLocation ...(32 + Companies)
Ventiladores Copacabana
Merrytech
G.S.E.B
TIMCO
Mexico’s network of FTAs is one of the largest in the world
Transformation responds to a strategy
El Salvador
Costa Rica
Nicaragua
Honduras
Guatemala
Israel
Canada
United States
South Korea
Chile
Argentina
Bolivia
VenezuelaColombia
Portugal
Netherlands
Switzerland
Austria
Spain FranceItaly
Greece
Germany
Belgium
Luxembourg
Finland
Denmark
Ireland
United Kingdom
Sweden
Norway
Iceland
Liechtenstein
Brazil
Cuba
Czech Rep.
Australia
Peru
Mercosur
Uruguay
Japan
Mexico is among world's most open economies
20 BITs
12 FTAs
6 CEAs
0.80.8
0.60.7
0.9
1.1 1.1
1.7 1.7
1.5
1.8 1.8
2.0
1.1
0
1
1
2
2
3
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 '05 2006**
Florida’s Exports to Mexico1993-2006*(Billions of US Dollars)
Source: US Census, WISER and SE-NAFTA Series.* 2000-2006, NAICS series. ** 2006 Jan-Jun
Chemicals11%
Transportation Equipment
10%
Others29%
Machinery, Except Electr
9%
Electrical Equipment, Ap
9%
Computer And Electronic
32%
Florida’s Exports to Mexico by Sector (NAICS)2005
Source: US Census, WISER and SE-NAFTA Series.
104.2
144.9
90.6
89.5
71.2
63.6
53.147.2
45.4
43.4
32.7
28.2
0 20 40 60 80 100 120 140 160
Video Games Used W Tv Rceivr & Pts And Accessories
Digital Monolithic Integrated Circuits
Ferrous Waste & Scrap Nesoi
Automatic Data Processing Units, N.E.S.O.I.
Pts,Ex Antenna,For Trnsmssn,Rdr,Radio,Tv,Etc Nesoi
Gas Turbine Parts Nesoi
Automatic Data Processing Storage Units, N.E.S.O.I
Motorboats, Other Than Outboard Motorboats
Parts & Accessories For Adp Machines & Units
Elect Appr F Prtct To Elect Circt Nov 1000 V Nesoi
Fertilizers, Exports Only Incl Other Crude Matls
Transmission Appr Incorporating Reception Apparats
Florida’s Exports to Mexico – 2005(Millions of US Dollars)
Source: US Census, WISER and SE-NAFTA Series.
Florida’s Opportunities in Mexico
Source: Ministry of Economy with data from WISER and USDOC
Sector
Total
Computer And Electronic Prod.
Transportation Equipment
Machinery, Except Electrical
Chemicals
Miscellaneous Manufactured
Electrical Equipment, Appliances
Food And Kindred Prod.
Fabricated Metal Prod.
Paper
Agricultural Products
Plastics And Rubber Prod.
Textiles and Fabrics
Florida’s Total Exports
33,377
9,729
5,652
3,588
3,489
1,736
1,205
1,100
845
806
633
520
509
Florida’s Exports to Mexico
2,025
662
194
186
215
106
188
29
52
74
2
33
27
Mexico Imports from U.S.
120,049
23,298
14,455
11,494
12,899
2,727
8,071
5,641
5,059
3,206
3,590
5,817
3,067
Millions of US DollarsMexico Total
Imports
221,249
50,065
16,073
33,082
21,924
4,096
9,360
8,873
10,073
5,181
4,869
7,477
5,141
Share .
54%
47%
90%
35%
59%
67%
86%
64%
50%
62%
74%
78%
60%
Incentives to promote the competitiveness
SME Financing Consulting Training, R&D
ProsecClusters
ITA +
Business Acelerator Program
Fiscal Incentives
OPIC Eximbank Nafin Bancomext
Design Centers
Prosoft
Fiscal Incentives
Automotive*
Electronics* Software*
Aerospace
Textile
Agriculture
Tourism
Commerce
Construction Maquiladora* Chemical
Shoe & Leather*
Elements to ease key imports for the industry: ITA PLUSPROSECRULE 8th
Elements of Government support30% TAX Credit on Engineering design, R&D Reduced Income tax on Maquiladoras Immediate Deduction of AssetsGrants to help location on designated areas Training incentives Federal-StateFederal-State mixed funds on technology based projects (grants)
University and Research Centers InvolvementWorking closer to understand industry needsFederal Funds for Research Centers
Many Companies are Taking Advantage of the Mexican Strategy to Attract Businesses…
We offer:
Mexico: a World of Economic Opportunity
TijuanaTijuanaPopulation:Population: 750,000 750,000Key Industries:Key Industries: beverages, processed beverages, processed foods, metalworking, radio and television foods, metalworking, radio and television manufacture, electrical machinerymanufacture, electrical machinery
HermosilloHermosilloPopulation: Population: 600,000600,000Key Industries: Key Industries: automotive, meat, automotive, meat, cement and derivatives, electrical cement and derivatives, electrical machinerymachinery
CuliacánCuliacánPopulation: Population: 600,000600,000Key Industries: Key Industries: food processing, cereal food processing, cereal milling, sugar, beverages, edible oils milling, sugar, beverages, edible oils and fatsand fats
AguascalientesAguascalientesPopulation:Population: 500,000 500,000Key Industries: Key Industries: electronics, automotive, electronics, automotive, dairy, textiles, carpetsdairy, textiles, carpets
LeónLeónPopulation: Population: 1 million1 millionKey Industries: refining, footwear, leather and Key Industries: refining, footwear, leather and tanning, bakery goods, beveragestanning, bakery goods, beverages
GuadalajaraGuadalajaraPopulation: Population: 4 million4 millionKey Industries: Key Industries: high-technology, edible high-technology, edible oils and fats, plastic products, oils and fats, plastic products, chemicals, dairy products, processed chemicals, dairy products, processed foods, textiles, footwearfoods, textiles, footwear
Mexico CityMexico CityPopulation: Population: 20 million20 millionKey Industries: Key Industries: retail, financial retail, financial services, food, automotive, plastic services, food, automotive, plastic products, paper and cellulose, products, paper and cellulose, chemical derivatives, basic chemical derivatives, basic chemicalschemicals
PueblaPueblaPopulation: 1.5 millionPopulation: 1.5 millionKey Industries: automotive, Key Industries: automotive, textiles, iron and steel, bottled textiles, iron and steel, bottled water, chemicals, meat processingwater, chemicals, meat processing
VeracruzVeracruzPopulation: Population: 450,000450,000Key Industries:Key Industries: petrochemicals, refining, basic petrochemicals, refining, basic chemicals, iron and steel, chemicals, iron and steel, sugar, beef, processed foods, sugar, beef, processed foods, tourism, transportation tourism, transportation services (maritime)services (maritime)
Ciudad JuárezCiudad JuárezPopulation: Population: 800,000800,000Key Industries: Key Industries: electrical machinery, transport equipment, meat, electrical machinery, transport equipment, meat, electronics, dairy productselectronics, dairy products
MéridaMéridaPopulation: Population: 600,000600,000Key Industries: Key Industries: beverages, edible oils and beverages, edible oils and fats, processed foods, cement and fats, processed foods, cement and derivatives, plastic productsderivatives, plastic products
ChihuahuaChihuahuaPopulation: 650,000Population: 650,000Key Industries: Key Industries: electrical machinery, electrical machinery, automotive, meat, electronics, dairy products, automotive, meat, electronics, dairy products, timbertimber
TorreónTorreónPopulation: Population: 880,000880,000Key Industries: Key Industries: automotive, bricks, clay, automotive, bricks, clay, refractory, general machinery, cement and refractory, general machinery, cement and derivativesderivatives
TolucaTolucaPopulation: Population: 850,000850,000Key Industries:Key Industries: automotive, plastics, automotive, plastics, paper and cellulose, chemical paper and cellulose, chemical derivatives, basic chemicalsderivatives, basic chemicals
MonterreyMonterreyPopulation:Population: 3 million 3 millionKey Industries: Key Industries: oil refining, iron and steel, oil refining, iron and steel, electrical machinery, glass and derivatives, electrical machinery, glass and derivatives, breweries, meat products, cement, bankingbreweries, meat products, cement, banking
San Luis PotosíSan Luis PotosíPopulation: Population: 670,000670,000Key Industries: Key Industries: iron and steel, iron and steel, non-ferrous metallurgy, tobacco non-ferrous metallurgy, tobacco products, electrical machinery, products, electrical machinery, automotive, livestockautomotive, livestock
QuerétaroQuerétaroPopulation: Population: 460,000460,000Key Industries:Key Industries: automotive, paper automotive, paper and cellulose, synthetic fibers, and cellulose, synthetic fibers, general machinery, electrical general machinery, electrical machinery, processed foods, dairy machinery, processed foods, dairy products products
Tampico-Madero-AltamiraTampico-Madero-AltamiraPopulation: Population: 340,000340,000Key Industries:Key Industries: chemical, industrial chemical, industrial machinery, electronic & electrical machinery, electronic & electrical equipment, oil and refinery, equipment, oil and refinery, agriculture, cattle, fishing agriculture, cattle, fishing
Source: SE-NAFTA.
DR. HÉCTOR MÁRQUEZ
1911 PENSYLVANIA AVE. 8TH FLOOR
WASHINGTON, DC, 20006.
TEL. (202)728-1776
FAX (202)728-1712
E-MAIL [email protected]
Web page: http://www.economia.gob.mx
CONTACT POINT