Www.investinmexico.com MEXICO & NAFTA Opportunities for Chinese Companies Carlos Santos Trade...
-
date post
21-Dec-2015 -
Category
Documents
-
view
214 -
download
0
Transcript of Www.investinmexico.com MEXICO & NAFTA Opportunities for Chinese Companies Carlos Santos Trade...
www.investinmexico.com
MEXICO & NAFTA
Opportunities for Chinese Companies
Carlos SantosTrade Commissioner of MexicoCIFIT, Xiamen, 9 Sept. 2006.
www.investinmexico.com
Why Mexico?1. Geographic Location
2. Free Trade Agreements
3. Economic Stability
4. Key Infrastructure
5. Investment Climate
6. Labor Force
7. Success Stories
www.investinmexico.com
Geographic Location
• Easy and fast communications between Mexico and North America, South America, Europe and Asia, as well as economic ties between these regions.
www.investinmexico.com
Free Trade Agreements
• No country in the world has signed more trade agreements with other nations than Mexico. These agreements can only increase companies´ competitiveness in those markets
www.investinmexico.com
萨尔瓦多 r智利
以色列
玻利维亚
危地马拉
尼加拉瓜
洪都拉斯
哥伦比亚
哥斯达黎加
委内瑞拉
加拿大 美国 欧盟 冰岛 挪威列支敦士登瑞士
6
日本
乌拉圭
墨
西
哥
的
自
由
贸
易
协
定
www.investinmexico.com
NAFTA• The North America Free Trade Agreement (NAFTA). In J
anuary 1994, Mexico joined Canada and the United States in the North American Free Trade Agreement (NAFTA), after 11 years of existance tariffs have been eliminated on 84.5% of all non-oil and non-agricultural Mexican exports to the United States and 79% of exports to Canada. The current duty free temporary import programs were eliminated as of January 1, 2001 for trade between Mexico, the United States and Canada.
• By the year 2009, there will be no more tariffs on products traded by the 3 countries.
www.investinmexico.com
Electronics Sector
• Mexico’s agreements, eliminates tariffs on imports from all the world to:– Computer products (Computers, monitors, p
rinters, scanners)– Telecommunication products (modems, cell
ular phones, office switching equipment, switching transmission equipment, audio & video)
– Other electronics goods (calculators, photocopy machines, cash registers).
www.investinmexico.com
Tariffs on raw materials and inputs of other sectors, such as steel, plastics, and chemical products, only to be used by the electronic, computer and telecommunications firms, were eliminated since September 2002 (278 tariff codes in the electronics PROSEC)
www.investinmexico.com
• The National Program for the Competitiveness of the Electronics Industry and High Technology includes issues such as:
– Designing a competitive fiscal policy– Promoting a competitive tariff structure– Efficient foreign trade processes– Develop the supply chain– Promoting technological development– Upgrading human capital– Generating an adequate infrastructure
www.investinmexico.com
Economic Stability
• Our economic figures indicate a well established and sustained economic program aimed at growth and sharing this growth with all the companies involved.
www.investinmexico.com
The Mexican economy has followed a very dynamic convergence process with the US economy in recent years
Mexico´s trade reforms have provided continued investment opportunities and strengthened growth prospects
The financial system has been strengthened and its regulation significantly improved and modernized
The Central Bank has consolidated as fully autonomous and independent
A clear division of powers has emerged between the Executive, the Legislative and the Judicial branches
12
Highlights of the Mexican Economy
www.investinmexico.com
Financial Policy
Fiscal Policy
Monetary Policy
Exchange Rate Policy
Public Debt Management
Openness of the Economy
Strengthening of the domestic financial system
Strong track record of fiscal discipline
Inflation control
Fully flexible
Improvement of the amortization schedule, reduction of exchange and interest rate risks
Take advantage of international free trade agreements
13
www.investinmexico.comSource: Banxico
Private Sector Forecast (Banxico Survey, August 2005)
Description 2005 2006/f
Gross Domestic Product Real % growth 3.1 3.5
Inflation Dec./Dec. 3.68 3.8
Nominal Exchange Rate Year closing 11.09 11.56
Interest Rates Cetes for 28 days, % 9.18 8.62
Current Account Millions of dollars -9,253 -12,825
www.investinmexico.com
1st exporter in Latin America 8th exporter worldwide (considering European Union as a whole) 3rd commercial partner of the United States of America as of December 31st, 2004
(1) Total Trade USD Billion
Source: US Department of Commerce and EFTA
1998 1999 2000 2001 2002 2003 2004
Canada 174.8 198.3 229.2 216.9 210.6 224.2 255.9
China 71.2 81.8 100.1 102.2 125.2 152.4 196.7
Mexico 94.7 109.7 135.9 131.4 134.7 138.1 155.8
Japan 121.9 131.4 146.6 126.6 121.5 118.0 129.6
PRINCIPAL US TRADE PARTNERS(1)
15
www.investinmexico.com
EXPORTS TO:
1. U.S.A. 83.8%
2. Canada 1.7%
3. Spain 1.0%
4. Germany 0.9%
5. Japan 0.6%
6. China 0.5%
7. Brazil 0.4%
8. United Kingdom 0.4%
9. Venezuela 0.4%
10. Colombia 0.4%
IMPORTS FROM:
1. U.S.A. 56.2%
2. China 7.3%
3. Japan 5.4%
4. Germany 3.6%
5. Canada 2.7%
6. Korea 2.7%
7. Brazil 2.2%
8. Taiwan 1.8%
9. Malaysia 1.7%
10. Spain 1.4%
Source: Banco de Mexico
Mexico’s Foreign TradeTop Ten Partners 2004
16
www.investinmexico.com
China’s Position in Mexico’s Foreign Trade Structure
(Unit: US Nillions )
2003 2004 20052006 ( April )
Share
2005 Increase Rate
2°-Imports from China 9.4 14.48 17.63 6.52
7.96% 21.75%
10°Exports to China 0.46 0.47 1.13 0.45%
0.53% 139.13%
Source: Ministry of Economy of Mexico.
www.investinmexico.com
Investment Climate
• Mexico offers a vast range of opportunities with benefits for all companies
www.investinmexico.com
Investment Climate
• Between 1994 to 2005 Mexico received USD $172.7 billion on FDI.
• Annual average of USD $15.7 billion.
• Free Trade Agreements have provided Legal framework for FDI.
• Largest investors: USA (62%); Netherlands (8.3%); Spain (8.1%); UK ( 3.8%).
• National Treatment for Foreign Investment.
www.investinmexico.com
Mexico's Key Information
• Mexico is the world´s 9th biggest economy and the 7th most important commercial trader.
www.investinmexico.com
Basic Information• Population (est. 2006): 105 million people• Land size: 1,964,375 sq. kms.• Religion: 89% catholic• Climate: Tropical to desert• Language: Spanish• Education is mandatory from the age of 6 to 14. I
t is also one of the Mexican Government's top priorities. A large proportion of the Federal Budget is spent on Education
www.investinmexico.com
Labor Force
• Mexico´s labor force is young, abundant, skilled, well educated and eager to fulfill any labor requirement
www.investinmexico.com
• From the total 105 million Mexicans:
0 to 14 30.6% 15 to 64 63.6% 65 + 5.8%
Population Growth is 1.16% per year.
Young Labor Force
www.investinmexico.com
Success Stories
• There are over 16,000 foreign companies established in Mexico, where they enjoy a big local market and a solid platform for boosting their exports.
www.investinmexico.com
CARLOS SANTOS TRADE COMMISSIONER OF MEXICO
BANCOMEXTEMBASSY OF MEXICO
E-MAIL: [email protected]