Mexico – country of opportunities for the
Slovenian companies
March 2015
Mexico: The 14th biggest country
Corresponds to the surface of
Europe‘s 4 biggest countries:
Germany
=
Spain
France
Sweden
2
Mexico is the 11th country in terms of population
México tiene
Mexico
una has
población de
118
118millones
Million de
inhabitants
habitantes
Equal to the population of
Colombia, Spanien and Australia
3
A country with great infrastructure
Mexico has:
•
•
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•
•
63 border crossings.
68 international ports.
64 international airports.
16,700 miles of railroads.
230,000 miles of roads.
Monterrey
Altamira
SLP
Tampico
Guanajuato
Guadalajara
Veracruz
Manzanillo
Lázaro
Cárdenas
Source: SCT.
4
2013 15th biggest economy amongst 189 countries
Economic Indicator
Real GDP Growthl (%, constant prices)
GDP(Billion of current US dollars, BD)
GDP per capita (current dollars)
PPP GDP (Billion of international dollars)
PPP GDP per capita (international dollars)
Inflation (%, end of period)
Unemployment Rate (% of total labor force)
Population (million persons)
General Government Revenue (as % of GDP)
General Government Expenditure (as % of GDP)
General government net lending/borrowing (as % of GDP)
General Government Gross Debt (as % of GDP)
Current Account (BD)
Current Account Balance (as % of GDP)
Exchange Rate (pesos/US dollar, end of period)
28-day CETES Interest Rate (%, yield, end of period)
2009
-4.7
895.0
7,947
1,678.4
14,904
3.6
5.5
112.6
22.1
27.2
-5.1
43.9
-8.2
-0.9
13.06
4.51
2010
5.1
1,051.1
9,197
1,785.7
15,624
4.4
5.4
114.3
22.4
26.7
-4.3
42.2
-3.9
-0.4
12.36
4.45
2011
4.0
1,171.2
10,124
1,896.3
16,392
3.8
5.2
115.7
22.9
26.2
-3.3
43.2
-12.6
-1.1
13.99
4.31
2012
4.0
1,185.7
10,129
2,007.2
17,147
3.6
5.0
117.1
23.4
27.1
-3.7
43.2
-15.1
-1.3
13.01
3.91
2013
1.4
1,260.9
10,650
2,058.9
17,390
4.0
4.9
118.4
23.3
27.1
-3.8
46.4
-25.9
-2.1
13.08
3.18
2014
2.1
1,295.9
10,837
2,143.5
17,925
4.1
4.8
119.6
22.2
26.4
-4.2
48.0
-25.2
-1.9
14.72
2.74
2015f
3.3
1,367.3
11,321
2,260.2
18,714
3.2
4.5
120.8
21.6
25.6
-4.0
49.0
-27.7
-2.0
14.18
3.51
2016f
3.8
1,436.6
11,777
2,389.7
19,590
3.5
4.3
122.0
22.5
26.0
-3.5
49.0
-33.1
-2.3
14.18
4.48
Source: Elaboration of the Representative Office in Europe of the Ministry of Economy with IMF and Banco de Mexico data and forecasts and Survey of Expectiations of Private Sector Economist: January 2015.
5
Mexico will be one of the top 10 economies
2013
World's largest GDP measured by PPP
Gross Domestic Product
(Billion Dollars)
18,000
16,000
Goldman Sachs estimates that
Mexico will be the 5th largest
economy by 2050.
14,000
14th place
12,000
10,000
8,000
6,000
4,000
Corea del…
According to Accenture,
Mexico will be one of the
Big Six in 2025.
Gross Domestic Product
(Billion Dollars)
Vietnam
Turquía
Corea
Francia
Nigeria
Alemania
Reino Unido
Japón
Indonesia
According to HSBC,
Mexico will be the 8th largest
economy in the world by 2050.
Rusia
México
Brasil
India
EU
China
5th place
Goldman Sach’s Forecast
México
España
Australia
Canadá
India
Italia
Rusia
Brasil
Francia
Alemania
Japón
20501
China
EU
0
Reino…
2,000
Source: Goldman Sachs. The N-11: More Than an Acronym. Documento de economía mundial No: 153. Marzo de 2007/ HSBC/
ACCENTURE.1/ Pronóstico de Goldman Sachs / Fondo Monetario Internacional.
6
We are commited to free trade
Mexico has access to 45 countries through its free trade agreements
(1.2 billion people).
45
Number of countries
Number of countries
with privileged access*
20
17
12
8
1
Our FTAs give privileged access to 61% of the world’s GDP.
Sources: Brazil; China: Colombia:; United States: ; Chile: Direcon; Mexico: Ministry of Economy.
7
Acuerdos de Complementación
Económica
Tratados de Libre Comercio
NAFTA: Canadá y Estados Unidos
FTA EU-MX: Unión Europea
EFTA: Noruega, Islandia, Suiza y Liechtenstein
G3-FTA: Colombia y Venezuela
NTFTA: El Salvador, Guatemala y Honduras
EPA: Japón
FTA: Bolivia
FTA: Chile
FTA: Costa Rica
FTA: Israel
FTA: Uruguay
ACE: Argentina
ACE: Bolivia
ACE: Brasil
ACE: Cuba
ACE: Paraguay
ACE: Perú
ACE: Uruguay
ACE: Mercosur
Acuerdos de Alcance Parcial
PSA: Ecuador
PSA: Panamá
PSA: Paraguay
Acuerdos para la Promoción y Protección Recíproca de las Inversiones:
América Latina y el Caribe
Argentina, Cuba, Panamá, Trinidad and Tobago, Uruguay
Europa
Alemania, Austria, Bélgica-Luxemburgo, Bielorrusia, Dinamarca, Eslovaquia,
España, Finlandia, Francia, Grecia, Islandia, Italia, Países Bajos, Portugal, Reino
Unido, República Checa, Suecia, Suiza
Asia-Pacífico
Australia, China, India, Corea, Singapur
Pacto de Alianza Trans-Pacífica:
Chile, Colombia y Perú
8
Pacific Alliance
• Elimination of 100% of tariffs.
• 92% immediately and the other 8% in the
next 15 years or sooner.
• Elimination of visas between members.
• Platform for student and academic mobility.
• Unification of stock exchanges.
• Homologation of health and regulatory
certifications.
9
México And the TPP
In negotiation
P4 (Brunei, Chile,
New Zealand and
Singapore)
The 12 countries of the TPP represent:
• 38% of global GDP.
• 23% of world exports.
• 28% of world imports.
• 11% of the world’s population.
10
Mexico
Slovenia
GDP
$1,261 Billion
USD* (1.1%)
$47.99 Billion
USD* (-0.1%)
GDP per capita
$10,307 USD*
$23,289 USD*
Population
118 Million
Inhabitants*
2 Million
Inhabitants*
Inflation
4.08% Inflation
Rate
0.2% Inflation
Rate
11
Source: Information obtained from World Bank, *Information from 2013
Bilateral Trade between Mexico and Slovenia
Value in Thousands of USD
80,000
7,892
30,000
0
-20,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
/1
293
116,514
-70,000
-120,000
Exports
Source: ProMéxico, Information from Ministry of Economic Affairs.
Imports
Balance of payments
12
From Mexico to Slovenia
•
•
•
•
•
•
•
•
•
•
•
•
•
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Polyvinyl chloride (plastic components)
Digital processing units
Memory Units
Elements for vibration control (in vehicles)
Propionic acid
Tequila
Toothpaste
Beer
Magnetic tapes
Deodorants and antiperspirants
Washers, valves or other parts of technical use for shock absorbers
Harnesses and electrical cables for current conduction
Mandrels or tool holder
Spirituous beverages containing hard liquor or distilled agave
Circuit boards
Scale models for assembling
13
Source: ProMéxico, Information from Ministry of Economic Affairs.
From Slovenia to Mexico
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•
•
•
•
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•
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•
Brush holder for starters
Camshaft to transmit rotary motion in cars
Starters (engine), less than 24V
Synchronous Motors
Alternators
Rheostats
Hop made into crushed cones or pellets
Antennas with electric drive
Waxing tools
Multilayers for turn signals or rear lights
Compressors
Sunglasses
14
Source: ProMéxico, Information from Ministry of Economic Affairs.
Industries
Strategic &
Main
Industries
Mexico
Slovenia
Automotive, Aerospace, ICTs, Life
Sciences, Chemical, Food &
Beverage, Energy
Chemicals & Pharmaceuticals,
Machining & Metalworking, ICTs,
Logistics & Distribution, Wood-procesing,
Electronics & Electrical, Automotive
15
Opportunities between Mexico & Slovenia
•
•
Opportunities
(Export)
Automotive
Wood processing
•
Medical
Equipment
•
Information &
Communication
Technologies
•
Processed
Foods &
Beverages
•
Construction &
Infraestructure
•
Pharmaceuticals
& chemicals
16
NAFTAs Value Chain
Automotive Parts cross the
border 8 times during the
production process.
Der Learjet 85 is
developed in Canada, but
produced in Mexico and
assembled in the USA.
17
A country part of NAFTA
• +50 border crossings with the US.
• NAFTA market
= 18 trillion USD.
• Bilateral trade with the U.S.
= 1 million dollars per minute.
• 1 million people and 300 thousand
vehicles crossing the border daily.
Source: SCT/ US Department of Transportation.
18
5.4%
8.5%
Cars
Parts & Accesories
1.2%
Refrigerators
& Freezers
1.3%
Medical equipment &
surgical intstruments
4.7%
4.6%
Phones and
Cargo trucks
Telecommunications
12
Mexico’s most important
Car seats &
their parts
1.5%
Partially processed
gold
Quelle: ProMéxico with Information from Global Trade Atlas 2013. * Share of total exports in %.
Computers &
Accesories
4.4%
exported products *
1.4%
4.6%
Receiver
1.5%
Tractors
2.7%
Electrical
conductors
19
Mexico is an exporter of sophisticated products
Mexico ranks 20th in
Harvard and MIT's
Atlas of Economic
Complexity.
• It acknowledges that Mexico can retain large amounts of productive
knowledge.
• Mexico manufactures and exports a large number of sophisticated
products.
• Manufacturing accounts for 80% of our exports.
Source: INEGI/ Presidency/ Harvard and MIT, Atlas of Economic Complexity/ OECD.
20
We are leaders in key sectors
AUTOMOTIVE AND
AUTOPARTS
• 8th producer and 4th exporter
globally of new light vehicles in the
world.
AEROSPACE
• Mexico is the 6th supplier to the
American aerospace industry.
370 billions in exports
50% medium and high tech
manufactures
MEDICAL DEVICES
• We are the largest exporter in Latin
America and main supplier to the
US.
Source: FEMIA/ GTA/ AMIA/ OICA.
.
ELECTRIC-ELECTRONIC
• Leading flat television screen
exporter in the world.
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A COUNTRY WITH
COMPETITIVE SECTORS
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Aerospace
Aerospace part manufacture
(US=100)
• There are 270 aerospace companies in
Mexico.
Japan
Australia
Germani
USA
Italy
United Kingdom
France
Canada
The Netherlands
Brazil
Russia
Mexico
• In 2013, exports from this sector
exceeded 5 billion dollars.
• Mexico has the second largest fleet of
business jets in the world (after the US).
• Every two minutes takes-off an airplane
with Mexican technology.
0
20
Cost Index
40
60
80
100
120
According to KPMG, aerospace parts
manufacturing costs in Mexico are
approximately 16% lower than in the United
States.
Source: KPMG/ US Census Bureau/ Ministry of Economy/ Bombardier.
• Mexico is the 6th supplier to the
American aerospace industry.
23
Automotive
• Mexico is the 8th vehicle producer in the world.
• And the 4th exporter globally of new light vehicles in
the world.
• We export almost three times more than Brazil and India
combined.
Ford’s plant in Hermosillo,
Mexico, is the only facility
in the world to produce the
new Fusion model and the
Lincoln MKZ.
• We are a strategic supplier to the North and Latin
American automotive markets.
• In 2011, Mexico was the leading autoparts supplier
to the United States.
• Eleven of every 100 light automobiles sold in the
United States are manufactured in Mexico.
• 84 of the top 100 auto parts companies in the world
have production facilities in Mexico.
24
Source: OICA/ Global Trade Atlas/ AMIA/ Ward’s Automotive Reports/ AASA, 2011.
Electric-Electronic
• Mexico is the leading home appliance
exporter in Latin America.
• And the 6th globally.
• It is the leading flat television screen
exporter in the world.
• The second refrigerator exporter.
• The 4th global exporter of computers.
• 8 of the top 10 transnational electronics
manufacturing services (CM’s) have
operations in Mexico.
Electronics assembling
(US=100)
Japan
Australia
Germany
USA
Italy
United Kingdom
France
The Netherlands
Canada
Brazil
Russia
Mexico
0
20
Cost Index
40
60
80
100
120
According to KPMG, electronics assembling
costs in Mexico are 15% lower than in the
United States.
25
Source: Global Trade Atlas/ KPMG/ Manufacturer Market Insider.
Medical devices
•
Medical devices manufacturing
(US=100)
Japan
Australia
Germany
USA
Italy
Canada
France
The Netherlands
United Kingdom
Brazil
Russia
Mexico
•
•
•
0
20
Cost Index
40
60
80
100
According to KPMG, medical device
manufacturing costs in Mexico are 23%
lower than in the United States.
120
•
Mexico is the 5th global exporter of
medical instruments and devices.
We are the largest exporter in the
medical device industry in Latin
America.
The 3rd global exporter of suture needles
in the world.
And the 6th exporter of respiratory and
mechanic therapy equipment in the
world.
Our country is the leading exporter of
orthopedic items and gauzes and
bandages in Latin America.
26
Source: Global Trade Atlas/ KPMG.
Agrifood
Food processing
(US=100)
• Mexico is the leading exporter of
• Avocado.
• Mango.
• Guava.
• Papaya.
• Processed peppers.
• Sweetened, powdered cocoa.
• Fresh tomato.
• Beer.
Japón
Australia
EU
Alemania
Canadá
Francia
Italia
Países Bajos
Reino Unido
Brasil
México
75.0
80.0
85.0
90.0
95.0
100.0
• And the second exporter of
• Watermelon.
According to KPMG, processed food costs in
• Limes.
Mexico are 15% lower than in the United
• Raspberry, blackberry and mulberry.
States.
Cost index
27
Source: Global Trade Atlas/ KPMG.
ProMéxico’s strategies
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What Do We Offer in ProMéxico?
Brings companies together
and link them to private or
public organizations and
academia, among others,
with specific goals that are
usually project-related.
ProMéxico
Simplifies the execution or
increases the appeal of a
project, whether for export,
FDI or internationalization,
through incentives, studies
or by opening markets.
Boosts activities aimed to
present an overview of
international business and
trade. It also seeks to
encourage enterprises and
strategic sectors to reach
international markets and
promote the country's
image.
Assists clients to reach a
specific goal, through
training, personal assistance
or consulting.
Development of programs and projects
DCC/ ACT Model/ Softlanding/ Aftercare/ Roadmaps/ Clusters articulation/ MOMA/ PROCEI
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The ACT Model: global value added
2
LINKAGE
FDI ATTRACTION
Exports
1
National
supplier
Multinational
company
National
supplier
Multinational
company
FDI
3
Foreign
supplier
EXPORTS
30
Thank You for Your attention!
Fernanda Alvarez
Deputy Trade and Investment Commissioner
ProMéxico Germany
www.promexico.gob.mx
fernanda.alvarez@promexico.gob.mx
31
Current reform projects
Energy
Telecommunications
Education
Labor
Economic
Competition
PoliticalElectoral
Criminal
Procedure
Source: ProMéxico with Infomation from http://reformas.gob.mx
Financial
Tax
Appeal
Law
Transparency
32
Energy Reform
The efficient use of our natural resources will make it possible to harness the potential of the
energy sector to generate greater well-being for the population. Energy Reform is designed to
attract investment and modernize the energy sector in order to achieve the following:
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Support for the family economy.
Social development.
Caring for the environment and ensuring worker protection and the well-being of the
population.
Increased transparency in the energy sector, to provide Mexicans with detailed information.
The competitiveness of the country.
Increasing the availability of lower-cost energy inputs produced in the country.
Energy exports will be strengthened while our growing dependence on imported energy will
be reduced.
The country will transition toward a dynamic energy modelbased on the principles
of competition, openness, transparency, sustainability and long-term fiscal
responsibility.
33