NAFTA at Twenty: Trade, Transformation and the China Factor Dev-Aust… · · 2017-03-29NAFTA at...
Transcript of NAFTA at Twenty: Trade, Transformation and the China Factor Dev-Aust… · · 2017-03-29NAFTA at...
NAFTA at Twenty: Trade,
Transformation and the China Factor
By
Flavio Olivieri, CEcD
CEO, Tijuana EDC
Nafta 20 year anniversary
• US Exports to Mexico have
increased 400%
• Over $200 Billion
• NAFTA Trade: Represents
14 Million Jobs.
• Supply Chain Integration,
US Content of Imports:
• 40% from Mexico
• 25% from Canada
• 4% from China
• < 4% from Europe
Mexico´s NAFTA sectors
3 million units.
8th producer and 4th
largest exporter of
lightweight vehicles
6th manufacturer of heavy
vehicles
80,000 employees
270 companies, 32,000 employees
6th exporter to U.S.
Exports of $5 billion and
$12 billion by 2021.
Baja California represents
28% of country exports 2,349 companies, 115,000 employees
Exports of $8 billion and $5
billion by 2020.
Baja California represents
50% of country exports
Mexico´s Free Trade
Agreements Network
1994 Mexico’s pro-international trade policies have created a world-wide network of
free trade treaties with 44 countries, including:
Alianza del
Pacifico
TPP
Where is the Cali Baja Mega-Region?
Cali Baja Mega-Region: Where is it?
• Combines bi-national region of San Diego County, Imperial County, and Baja California…
By the Numbers: Mega-Region Overview – the People
Population of the Mega-Region
• 6.6 million population (2013 est.)
• 3.2 million labor force (2013)
• High educational levels in each of respective countries:
• Over 34% of San Diego County residents 25+ y/o have Bachelor’s degree or higher
• Baja California ranked 4th in Mexico for average years of education
• Over 60,000 combined Mega-Region High School graduates in 2011-2012
• Over 400,000 Mega-Region students enrolled in university and post-grad studies
Five Strategic Industries
• Advanced Manufacturing: aerospace, automotive, biotechnology, electronics, defense, medical devices, shipbuilding and telecom
• Agribusiness: agricultural crops, livestock & aquaculture
• Applied Biotech: bio/pharma/medical devices
• Cleantech: renewable materials and energy
• Logistics: customs brokers, freight forwarders, 3PLs and other advanced logistics providers
By the Numbers: Mega-Region Overview – the Economy
Scale of the Mega-Region Economy
• $214.3 billion: combined GDP (2012-2011)
• 3.0 million: total employment (2013)
• 50 years of experience in manufacturing
• #1 Medical device manufacturing employment in North America
• #1 in Export manufacturing companies in Mexico
• 50+ Industrial Parks
Tijuana: Mexico´s manufacturing hub
565
171,950
•114 Companies • 55.000 employees •43 Companies
• 34,000 employees #1 North America
• 40 Companies • 18,000 employees
• 29 Companies • 7,600 employees
Electronics
Aerospace
Medical
Automotive
Tijuana’s Key Industrial
Sectors
Education
•35+ universities
•15 technical schools
•57 high schools
•3 R&D Centers
Workforce profile
• Total cost to U.S. market
• Stable economy
• Ease of doing business
• Speed to market logistics
• Strong IP protection
Mexico´s Global Competitiveness
“Mexico is in a strong position to be a significant
winner from shifts in the global economy.” Boston
Consulting Group June 2013
Why Mexico by the numbers
750,000
Engineering
students
115,000 graduates
every year
Key Low Cost Countries Total
Landed Cost to U.S.
OECD
Latin America
Mexico
Brasil
Argentina
Chile
2.96
2.16
3.25
2.49
2.06
1.58
Technological Sophistication Index
Source: Promexico, Perspectives on Global Development 2010,
OECD, Based on Woo (2010).
Co-Innovation Success Stories
Contract Manufacturing
80+ companies offering
world-class manufacturing solutions
Silicon Valley´s
traditional format
"Suppliers List 2013" major manufacturing
locations of suppliers who provide raw materials
and components, or perform final assembly for
Apple.
14 Manufacturing Plants in China
World Intellectual Property Organization, 2013
The Shift of Innovation to Asia
Bi-national Airport Terminal
Estimate Investment $14.5 Million
525-foot pedestrian bridge linked to a 45,000-square-foot terminal in Otay Mesa. 2.5 million U.S. travelers The project is expected to be completed by 2015.
The first binational airport in America
Key Projects
Conclusion
• CaliBaja offers a unique business platform for U.S. small
and medium companies to do business in emerging
markets: Mexico, Latin America and the Pacific
• CaliBaja combined capabilities include a well-developed
innovation ecosystem. Integrating engineering and design
with advanced manufacturing in one region, without going
overseas