format for report december 2017 - federation of indian ... · standalone auto parts expo, mexico...

Commercial Report

Embassy of India Mexico City

Ambassador visited Indian garments importers and vendors - Mixcalco market

// With Annual Summary 2017 //

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CONTENTS

SLNO

SUBJECT PAGENO

1 AnnualSummary 2

2 TheEconomy 4

3 Trade,InvestmentandInfrastructure 5

4 Agriculture 6

5 TheEnergySector 7

6 TheAutomotiveSector 8

7 BilateralEventsandNews-Mexicoandothercountries 9

8 MultilateralEventsandNewsinvolvingMexico 10

9 CommercialNewsfromBelize 11

10 Appendix–Statistics(Belize´sperspective)iBilateralTrade(Belize-India)inJanuary-November2017comparedtoJanuary-November2016(FiguresinThousandUSD)ii.BelizeImportStatisticsfromIndiaiii.BelizeExportStatisticstoIndia

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11 Appendix–Statistics(Mexico´sperspective)i.BilateralTradeinJanuary–October2017comparedtoJanuary-October2016(FiguresinMillionUSD)ii.MexicoImportStatisticsfromIndiaiii.MexicoExportStatisticstoIndiaiv.MexicoImportstatisticsfromtheworld(product-wise)v.MexicoExportstatisticstotheworld(product-wise)vi.MexicoExportstatisticstotheworld(Country-Wise)vii.MexicoImportstatisticsfromtheworld(Country-Wise)viii.MexicoTotaltradewiththeworld(Country-wise)

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ANNUALSUMMARY

For Mexico, the year 2017 started with

continued high devaluation of national

currencyandgeneralproteststriggeredby

the high rates of gasoline. After the

swearing in of Mr. Donald Trump as the

newPresidentofUSA,theNorthAmerican

FreeTradeAgreement(NAFTA)underwent

renegotiation. Conclusions have been

drawn that this would hamper the

attractiveness of Mexico. The negotiation

continuesastheyearcomestoaclose.The

Mexicanpesoreturnedtoastablevalueof

18-19 by May 2017. Another highlight of

theyearwasthatthiswastheelectionyear

for the federal government. Elections aredueonJuly2018.

It is in this context that thedevelopments

in India-Mexico trade and investment

relations should be seen. In total, the

Embassy organized or participated in 34eventsofvariousnatures.

Trade

AsperthedatareceivedbytheEmbassy,in

thefirst3quartersof2017(Jan-Sept),India

has become one of the top ten trading

partner of Mexico. In the 9 months, the

trade grew at a rate of 29 percent

compared to the same period in previous

year.Thetotaltradeinthisperiodisworth

5.7 billion USD, with exports 3.74 billion

USD(16%growth)andimports1.98billion

USD (63% growth). This is the first time

India has become one of the top ten

tradingpartnersofMexico.Inpast2years,

we have replaced Taiwan and Italy. Theprojectedtotaltradeatthisrateofgrowth

wouldbe7.6billionUSDfor2017. In2016

we had a trade of 6.32 billion USD. From

Indianthemajoritemsthatpickeduppace

inexportstoMexicoareceramicproducts,

iron and steel, and dry fruits. From

Mexican side, major items that picked up

pace in exports to India in this year are

cooperand itsproducts,coffee,aluminum

and articles, photographic goods, etc..

FromMexicanside,themajorproductstill

iscrudeoil,theexportforwhichincreased

by63%invalue inthe3quarters. It forms

72%ofthetradebasket,whichislessthan75%shareithadin2016(fullyear).

Several of the issues were also discussed

during the meeting of Sub-committee on

Trade and Economic matters and sub-

committee on Energy as part of the Joint

Commission Meeting (JCM) which tookplaceinJune,2017.

On an average, the Commercial wing

received 45-50 trade queries in every

month, with about 95% from Indian side.

Mostof thequeries receivedwere related

to Ceramics, pharmaceutical and plasticssector.

Exposanddelegations

Intotal,Mexicoreceived9delegationfrom

India with over 200 companies andmany

more visited alone. The delegations

includedSRTEPCdelegationforInterModa,

Guadalajara; AEPC delegation; Morbi

Ceramics Association for Expo Habitat,

Mexico City; NASSCOM delegation for

DigitalEconomicShow,Guadalajara;ECPES

and TPCI delegations for Expo Ferreterra,

Guadalajara;CIIdelegationforExpoCIHAC,

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Mexico City; ACMA delegation for

standalone Auto parts expo, Mexico City,

Plexconcil delegation for Plastimagen,

Mexico City. Besides, the Embassy had

setupitsownstallinANIERMInternational

Expo, Encuentro Internacional de Energia

Mexico and Annual Reunion of IndustriesbyCONCAMIN,Monterrey.

Investments

In 2017, Mexico saw several investments

from India.Mahindra&Mahindramadea

10 million USD investment to setup their

tractors assembly plant in Aguascalientes.

SparkMINDAgroupmadeaninvestmentof

about20millionUSDinQueretarotosetup

auto parts manufacturing plant.

Samvardhan Motherson group opened a

new plant in Tlaxcala, which is also their

biggest so far worldwide. They are

employing upto 1000 people in the plant.

TVS motors has started supplying 3-

wheelers to Nuevo Leon as a solution to

their traffic problem. There are severalmoreinvestmentsinpipeline.

From Mexico, the biggest investment this

yearwasbyGrupoBimbo.Theyacquireda

major stake in Ready Roti company, the

brand holder of Harvest Gold. Cinepolis is

continuing expanding and has made a

target of opening 400 screens before the

end of 2017. The flow of investment has

generallybeenmore from India toMexicothanthesameinoppositedirection.

In total, it is estimated that we have an

investmentof2billionUSD inMexicoand

Mexicohasaninvestmentof1billionUSD.

The investment figures are being refined

further by PWC for their publication on

How to do Business in Mexico for Indiancompanies.

TheAmbassadorof IndiavisitedtheIndian

factories aswell. He visitedMSSL plant in

Chihuahua and SMPplant in Puebla (both

from SamvardhanaMotherson group). He

visited the state of art facility of Dr.

Reddy’s Laboratories in Morelos, RSB

Transmission factory in Silao, Guanajuato.

He also inaugurated the MINDA Spark

factory in Queretaro along with the

Governor.Atthecloseoftheyear,around

of various garment shopswere also taken

in Mixcalco, Centro Historico in Mexico

City. The HCL Technologies’ Guadalajara

installationwasalsovisitedwithNASSCOMdelegation.

Eventsorganized.

Because of the NAFTA renegotiation, the

majorthemerunningacrossthetradeand

investment related events was

diversification.Mexicohasfelttheneedfor

diversifying its trade partners now, morethanever.

The year began with CII-India Business

Forum, Mexico City and Make in India

conference inMonterrey inMarch. With

PWC, the Embassy organized a breakfast

meetinginjuneandasessionwithpartners

of PWC inOctober. ProMexico invited the

Embassy to their capacitation program to

talk with many traders, both offline andonlineinJuly.

Thebiggestconferenceswereorganizedby

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the Embassy in collaboration with the

biggest chambers of Mexico. With

Confederation of National Chamber of

Commerce, CONCANACO, it organized a

conference addressing most of the

Presidents of the regional chambers of

commerce.InvestIndiaalsoparticipatedin

the conference. With CONCAMIN Bajio, it

organized a conference in Leon,

Guanajuato with support of the

Government of Guanajuato. With COMCE

Sur, itorganizedabreakfastconference in

Puebla. India was the guest country in

Symposium on Transport and Logistics,

organized by LESCHACO. The conferencessawgreatinterestfromtheMexicanside.

Several of the big conferences were also

attended. The Ambassador attended the

MexicoBusinessSummitinSanLuisPotosi.

The Commercial Representative attended

the Annual Reunion of CONCAMIN in

Monterrey and Congress of COMCE inOaxaca.

Conclusion

The engagements between India and

Mexico in commercial sphere are

increasing rapidly since the visit of Prime

Minister in June 2016. There is growing

interest towards India in the Mexican

businessmen’s mind as can be assessed

fromthewidecoverageofIndianactivitiesinnationalandlocalnewspapersaswell.

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THEECONOMY

Centralbankauctionfailstosupportpeso

The Bank of México (Banxico) auctioned off an

unscheduledUS$500millioninforeignexchange

hedges,ameasuredesignedtoeasepressureon

thepeso.Butitonlyprovidedbriefrespitebefore

the currency slumped again to end the day at

$20.15 pesos per dollar. The central bank took

the decision on the advice of the Foreign

Exchange Commission, a body made up of

officials fromtheFinanceSecretariat (SHCP)and

Banxico that is responsible for foreign exchange

policyinMexico.ThecentralbankplacedUS$250

million in a 30-day forward contract and the

other US $250 million in a 57-day forward

contract.Themeasureallowsthecentralbankto

supporttheexchangemarketwithouteatinginto

Mexico’s international reserves, currently valued

at around US $172.5 billion. The peso faces an

“adverseenvironment” in2018duetoU.S.fiscal

reform, NAFTA renegotiations and the Mexican

presidential election. The SHCP and Banxicowill

continuetocloselymonitortheforeignexchange

market and some analysts believe that theywill

continue to intervene in the same way ifrequired.

Aguascalientesleadsineconomicgrowth

In its State GDP Growth 2017-2018 report, the

financialgroupsaidAguascalientesledwith6.1%

annual average growth in the six-year period

starting2010.Automotivemanufacturingwasthe

main forcebehind thestronggrowth.Querétaro

followed with a 5.1% growth rate, while

nationwide the figure was 2.9%. Querétaro’s

industrialsector(backedbyaconstructionboom

and a strongmanufacturing industry focused on

the exportmarket) grew by 11.8% and was the

single largest impetus for the surge. The

construction industry grewby28.5%mainlydue

to the completion of public works while

manufacturingincreasedby6%,drivenbyactivity

intheaeronautical,foodandchemicalindustries.

Aguascalientes isexpectedtogrowby5.6%next

year and Querétaro by 4.9%. Quintana Roo is

projected to be the third best performing state

economy in 2018with 4.5% growth followed by

Guanajuato with 4.3% and San Luis Potosí with

4.2%.Thetopfiveperformingeconomiesof2017

byyear’sendareprojectedtobeBajaCalifornia

Sur (8.4% projected growth), Puebla (6.7%),

Querétaro(5.4%),Aguascalientes (5.2%)andSanLuisPotosí(4.9%)

Banxicoseesadverseenvironmentforthepeso

The new governor of the Banco de Mèxico,

acknowledged that there is an adverse

environment for the Mexican currency in 2018,

mainly due to three factors: NAFTA, US tax

reform and presidential elections. Despite the

toolsusedbytheforeignexchangeauthoritiesin

Mexico,theexchangerateofthepesoagainstthe

dollar continues to rise and now peaked sinceMarch9ofthisyear.

Mexico breaks record in attracting ForeignDirectInvestment

In the period January-October, the region

remained in linewithwhatwas recordedduring

thefirstninemonthsoftheyear.SanLuisPotosí

registered the greatest dynamism in the area.

The investment registered from January to

September reached an amount of $163 billion

dollars,accordingtoProMéxico. Inexports,from

JanuarytoOctober,Mexicoregisteredmorethan

$336thousanddollarsinthesector.Mexicoisthe

seventeenth country in terms of attracting FDI

globally. In exports, from January to October,

Mexicoregisteredmorethan$336billiondollars

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in exports. Some export products highlighted

were automobiles (more 2.8 million units

exported in 2017), avocado (Mexico is themain

producerandexporterworldwide);beer(Mexico

is the fourth producer and the main exporter

worldwide); and strawberries (1 of every 10strawberriessoldintheworldisMexican).

TRADE,INVESTMENT&INFRASTRUCTURE

NewfoodstoresinPuebla,NuevoVallarta

Upscale food retailer La Comer, has opened its

latest new stores in the cities of Puebla and

Nuevo Vallarta. The company’s marketing

directorsaidsaleswereup12.7%inthefirstnine

monthsoftheyearcomparedtothesameperiod

in2016.Thefirm’sstrategyhadbeenfocusingon

higher-income consumers and targeting them

with their upscale City Market brand. Having

achievedgoodresults,ithasbeguntoexpandits

presencebeyondMexicoCity.Theneweststores

represented an investment of 612million pesos

(US$32million),151millionofwhichwereused

to build the 4,248-square-meter Puebla store. It

will be able to sell over 29,000 national and

imported products in that store. The store will

create270directand52indirectjobs.The4,992-

square-meter Nuevo Vallarta City Market is

located in Bahía de Banderas, Nayarit, required

an investment of 461 million pesos. It willgenerate170directand260indirectjobs.

$700bnpesosforecastforinvestmentinSEZs

Five special economic zones (SEZs) will attract

investment of 700 billion pesos (US $36 billion)

over the next 10 to 15 years, President Enrique

Peña Nieto predicted. The president signed

decrees for the creation of the zones in Puerto

Chiapas, Chiapas; Lázaro Cárdenas, Michoacán;

and Coatzacoalcos, Veracruz, in September and

with the additional designation of Progreso,

Yucatán,thetotalnumberofSEZsdecreedduring

this administration is now five. A further two

zonescouldeventuallybeaddedtothelist.Peña

Nieto said that investmentworthUS$6.2billion

had already been committed to projects in the

fivezones.InaccordancewiththefederalSpecial

Economic Zone Law, the areas will receive a

seriesoftaxandlaborincentivesandhavebotha

differentiated customs system and a flexible

regulatory framework.While conceding that the

creationof the zones isnotapanacea, theywill

boost economic development in the south and

southeast of the country, a region that includes

Mexico’s poorest and most underdeveloped

states.TheSalinaCruzSEZwillbegearedtowards

the traditional manufacturing industry whereas

Progresowill aim to attract new and innovativecompaniesthatusemoreadvanced.

US$1bnsteelmillannouncedforNL

Italian-Argentine conglomerate Techint Group

willinvestUS$1billiontosetupanewsteelmill

in Monterrey, Nuevo León. The hot rolling mill

will be developed as part of an expansion of

Techint’s industrial center in themunicipality of

Pesquería. Expected to be operational in the

secondhalf of 2020, the newplantwill have an

annualproductioncapacityof3.7million tonnes

of steel and manufactured products to meet

demandintheautomotiveindustryaswellasthe

home appliance, machinery, energy and

constructionsectors. InMexico,Techinthasnine

industrial plants and two mining operations as

well as five service centers and 11 distribution

centers. Lastyear itproduced3.5million tonnes

of steel inMexico,accounting for18.7%of total

national production. According to the National

Chamber of the Iron and Steel Industry

(Canacero),Mexicowas theworld’s 13th largest

steelproducerin2016withatotaloutputof18.8

million tonnes. However, the amount was not

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enough to meet domestic demand. Mexico

exported4.5milliontonnesofsteellastyearbut

imported13.9milliontonnes.Thedomesticsteel

industry contributes to 1.9% of Mexico’s total

grossdomesticproduct (GDP),6.2%of industrialGDPand10.6%ofmanufacturingGDP.

Legalhurdlesareover,carterminaltoopen

Mexico’s first marine terminal specializing in

shipping vehicleswill beginoperatingduring the

first quarter of next year in Lázaro Cárdenas,

Michoacán.Covering43hectaresandboastinga

wharf 530 meters long, the roll-on, roll-off TEA

(specializedautomotiveterminal)hascostUS$50

milliontobuild.Onceitisfullyoperational,halfa

million vehicles are expected to be shipped

through iteveryyear. Intendedforboth imports

and exports, the terminal has capacity for

450,000 vehicles and room to expand to handle

760,000.Havingaterminaldedicatedonlytothe

handling of vehicles will cut down on damage

that has resulted from sharing terminal space

with general cargo, which is often corrosive in

nature.

Newrailwaycompetitionforcanal

Construction of an interoceanic railway line

linking the Pacific and Gulf coasts of southern

Mexico will begin in January. Work on the first

phase of the 310-kilometer double-track line

between the ports of Salina Cruz, Oaxaca, and

Coatzacoalcos, Veracruz,will represent the start

of a free trade agreement for the southeast of

Mexico.Theprojecttolinkthetwooceanswould

placeMexicoinapositionwhereitcancompete

with thePanamaCanal.Mexico’s largest railway

operator, Ferromex, won the tendering process

to operate the new line. Other projects to

complement the railway will include increasing

thecapacityoftheSalinaCruzport,buildinga$1-

billion-peso agricultural park, modernizing the

CiudadIxtepecairportandcompletingtheMitla-

Tehuantepechighway.Itwasfirstannounceda3-

billion-peso investment package for the projects

inMarch,including700millionpesosforadirect

highwaybetweenSalinaCruzandCoatzacoalcos.

JapanesemultinationalMitsubishihascommitted

US$1.2billion for the creationofwind farms inthearea.

PrettlventuresintoMexicanaerospacesector

The German Prettl Electronics ventures in the

aerospace sector in mexico through a line of

harness production, in the plant installed in

Corregidora, Queretaro, development that

involvedaninitialinvestmentof$300,000dollars

and the generation of 10 specialized jobs. The

projectplansaninvestmentof2.5milliondollars

in three years and 25 jobs in total. The linewill

haveavolumecapacityproductionof1.4million

harnessesperyear,which impliesbusiness for$8.3milliondollarsayear.

AGRICULTURE

Sugar production will rebound in 2017 – 2018cycle

TheproductionofsugarinMexico,scheduledfor

the sugar cycle 2017 - 2018,will reach6million

182,000 tons, said Carlos Blackaller Ayala,

president of the National Union of Sugarcane

(CNPR). To achieve the mentioned production,

about 55million 633,000 tons of sugarcanewill

be milled, which will be harvested in 802,000

hectares, located in 227 municipalities of 15statesofthecountry.

DamagetoricemillhurtsMorelosgrowers

The rice industry isoneof themostemblematic

of the small state of Morelos but it too was a

victimofthepowerfulSeptember19earthquake

thatdevastatedpartsofcentralMexico.TheSan

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José rice mill, the only one of its kind in the

municipalityofJojutla,wasbadlydamagedinthe

7.1-magnitude quake. As a result, about 300

producerswhoprocesstheirgrainatthemillare

indangeroflosingtheirlivelihoods.TheMorelos

government has made an offer to buy new

machineryandfundtheconversionofanoldmill

into a rice museum to generate extra revenue.

Thequake struckat thebeginningof theannual

harvest, just when growers were reaping their

crops in preparation to enter the European

market. Morelos stands out for being the mainproducerofriceinMexicobyhectare.

Coldweatherdestroys70%ofnopalcrop

Morethan70%ofnopalproductioninMilpaAlta

was lost due to single-digit temperatures and

overnight freezes. The bulk of the edible cactus

padsthataresoldinMexicoCityaregrownthere.

BetweenDecember13and22,Sederecstaffand

insurance company representatives carried out

inspectionstoassessdamageacrossalmost2,000

plotsof land in theborough.Affectedproducers

are not convinced that the compensation will

make up for their loss. Due to a shortage in

Mexico Citymarkets, the price of a single nopal

paddle has shot up from $1 to $2.50 pesos but

theMilpaAlta farmers,with littleornoproducttosell,arenotbenefitingfromthepricehike.

AnFTAwithSouthKoreawillopenmarkettotheagri-foodsector

A free trade agreementwith South Korea could

increase the agri-food exports from Mexico to

that country, which currently stands at $95

million dollars. SAGARPA sees opportunity for

corn and pork.Mexico pays 40%of the tariff to

enter frozen and refrigerated beef into the

Korean market, and pork is under the same

conditions(representstheagri-foodproductwith

the most exports in 2016). In 2016, the Asian

countrybought$26thousand800milliondollars

offoodfromitsmaintradingpartners.Inthecase

of Mexico, that country bought $64.5 million

dollarsofanimalproductsand$8.85millionplant

products.Othermarketopportunitiesareshrimp,

canesugar,beets,bananas,coffee,beer,tequila,avocadosandberries.

THEENERGYSECTOR

BPontracktohave500stationsnextyear

TheBritishmultinationaloilandgascompanyBP

openedits100thgasstationinMexicowiththree

new outlets in Monterrey, Nuevo León, and

reaffirmed its intention to have 500 stations

operating by the end of 2018. BP was the first

international oil company to enter Mexico’s

deregulated retail fuel retailmarket, opening its

first station nine months ago. The general

manager of BP Downstream for Mexico, Álvaro

GranadaSanz,estimatedthat250,000consumers

are nowusing BP products every day. The long-

termtargetof theBritishoilcompany is tohave

1,500 gas stations by 2021. Duncan John

Rushworth Taylor, the British ambassador to

Mexico, congratulated the company for the

milestonereached,addingthattheeventshoweditslong-termcommitmenttoMexico.

8newMobilstationsopeninBajíoregion

Eightgasstationsinthewest-centralBajíoregion

are the first in Mexico to sell fuel that doesn’t

come from the state oil company, Pemex. The

newly-openedMobil stationsaresellinggasoline

anddieselrefinedanddistributedbyTexas-based

oil and gas corporation ExxonMobil, theworld’s

largest. The company intends to open 50 more

stations in theBajío,which includespartsof the

statesofAguascalientes, Jalisco,Guanajuatoand

Querétaro,duringthefirstquarterof2018.Inthe

long term, ExxonMobil plans to invest US $300

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million in logistics, inventory and the sale of its

fuels over the next 10 years. ExxonMobil

transports its own gasolines and diesel from a

TexasrefinerytoitsBajíostorageanddistribution

facilities through the Kansas City Southern rail

network. ExxonMobil is bringing two brands of

gasoline: Mobil Synergy Supreme+ and Mobil

Synergy Extra (comparable to Pemex’s Premium

andMagna,respectively)andoneofdiesel,Mobil

Synergy Diesel. Supreme+ and Extra are sold afewcentscheaperthanPemex´s.

FirstgascaverninMexicostartsoperation

Cydsa, one of themain producers of salt in the

continent,reportedthatattheendofNovember

it began the operation of the first LPG storage

saline cavern in Mexico, which is located near

Coatzacoalcos, Veracruz. In November 2014

Cydsa and Petróleos Mexicanos (Pemex) signed

anagreementwherethe investmenttotaled just

over$200milliondollars.Thissiteisexpectedto

shelter 1.8 million barrels of LP gas, with the

capacitytoinjectandextractupto120thousand

barrelsperday.

THEAUTOMOTIVESECTOR

59%ofthecarssoldareimported

Imported cars represent 59% of the total new

vehiclessoldinMexicointhefirstelevenmonths

of 2017, the highest registered percentage in a

period similar to 2008, which highlights the

increaseddemandfortheseunits.InMexico808

thousand and 60 foreign automobiles were

commercializedbetween JanuaryandNovember

thisyear,3.3%higherthantheoneregisteredthe

previous year. This is due to the entry of new

brands,besides therearevehicleswhicharenot

made in the country and complement the

portfolio of firms that must meet the marketneeds.

IncreaseincarssenttoCanadaandEurope

InNovember2017,274 thousand520carswere

exported from Mexico, 11.9% more in

comparison with the same month in 2016. It is

thehighestincreaseforasimilartimeinsixyears.

Thiswas due to the increments of 74.2% in the

vehicles sent to Canada and 110.1% to Europe.

The reduction in car exports toUSAwas due to

thelowdemandof lightvehiclesinthatcountry,

whichareMexico’sspecialty.Themostexported

brandsfromMexicoareFiatChryslerAutomobile

(FCA)andGeneralMotors,which represent41%ofthetotalcarsreceivedbyUSA.

Salesofnewcarswillincreasein2018

It isexpected that the salesofnewautomobiles

willrecoverthefall it isestimatedin2017and2

typesofcarswillpushthemarket,theSUVsand

thecrossover,asMexicanconsumershaveshown

a high preference for this type of vehicles. It is

expectedthatin2018thesaleswillreturntothe

positive terrain with an increase of 1.8% and

reachingatotalof1.1millionunitsfortheendoftheyear.

FordputsintoMexicodeeraofelectriccars

Ford Motor Company decided to move the

production of the crossover electric automobile

fromMichigan, USA to Cuautitlán Izcalli, Estado

de México to make way for additional

investmentsinautonomousvehiclesintheirstate

of origin. Fordwill star constructing the electricvehicleinsummerof2020.

Carsandtrucksexportedare66%Mexican

The manufacturing industry in Mexico

contributed 66.3% of value to the exports of

automobilesandtrucksin2016,abovethe65.2%

of the previous year and has its highest level

since available registry, since 2003. This implies

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that assemblers have increasingly turned to

inputsoflocalorigin,aswellastoservicesandto

Mexican labor in their production processes.

Mexico's automotive exports totaled 113 billion

dollarsin2013andaccountedforonethirdofthe

total sales of the manufacturing industry.

AutomotiveexportsgrewintheperiodofJanuary

toSeptemberofthepresentyearwith2.2million

units.

BILATERALNEWSANDEVENTS-MEXICOANDOTHERCOUNTRIES

INDIAMERCADOMIXCALCO

Ambassador Muktesh Pardeshi visited Indian

garmentsimportersandvendors(bothwholesale

aswellasretail)locatedatMixcalomarket.There

arearound50vendorssellingIndianproductsall

overMexico.Mexicoimportedabout328millionUSDworthoftextilesandgarmentsin2016.

UNITEDKINGDOMBritish fund will support projects from threestates

The states of Colima, Sonora, and Jalisco were

chosen by the British Government to receive

support from Newton Fund, representing an

amountof4millionpounds(equivalentto$100.2

million pesos), resource that will be used to

finance sustainable projects in the agro-food

sector. A memorandum of understanding on

researchandfinancingfortheagriculturalsector

was signed. The agreement will be valid until

September 30, 2021, committing resources,

either in species or financial, for research and

development in the field of the three Mexicanentities.

IINDONESIAIndonesiaandMexicoseektoboosttheirtrade

Indonesia aims to strengthen its relations with

both Mexico and countries in its region. The

ambassadorinMexico,YusraKhan,saidthatboth

countries are in time to renew themselves and

move towards development, making clear that

for Mexico the doors do not close before the

possible cancellation of the North America Free

trade Agreement (NAFTA). The trade balance

betweenMexico and Indonesia is dominated by

theAsiancountrywith$815milliondollars,being

themost renowned product the Toyota Avanza,

aswellasfootwear,electricalmachinery,rubber,

refrigerators,vegetablefats,textileproducts,and

in lastyear,papershipments toMexicogrew27

percent. While Mexico sent to Indonesia $176

million dollars in 2016, being themain products

electronic, mechanical devices, essential oils,

cotton, plastics, copper, pharmaceutical

products,amongothers.Intheagriculturesector,

recently IndonesiaandMexicoestablishedbases

to strengthen the sector in a cooperation of

researchanddevelopment,includingexchangeofcommercialagro-food.

GERMANYGermancompanysettlesinYucatan

The German company Leoni, specialized in

production and distribution of harness for

automotive industry, settled in Yucatan its fifth

plant inMexico,withan investmenthigher than

$350 million pesos. The new plant will export

from theAltura del Progreso Port to production

plantsofGeneralMotors,BMWandVolvowhichareinAsia,MexicoanUSA.

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USAUSAwillbuymorecattlefromMexicothisyear

Despite the environment of uncertainty

surrounding the negotiations of the North

AmericanFreeTradeAgreement(NAFTA),theUS

continues to buy more livestock from Mexico.

USA will import more cattle from Mexico and

Canadain2017thanitdidthepreviousyear,until

November 2017, 25% more compared to the

sameperiodof2016.Itisprojectedthatthetotal

USA imports of Mexican cattle will be

approximately 1.16 million heads in 2017, thehighestsince2012

MULTILATERALEVENTSANDNEWSINVOLVINGMEXICO

Undersecretary of Industry and Commerce,Rogelio Garza Garza, participated in theWorldSteelSummit

The Undersecretary of Industry and Commerce,

participated in the Global Forum on Excess of

Steel Capacity, held in the City of Berlin,

Germany, under the German presidency of the

G20, whose efforts play an important role to

improve the global steel industry. The

participatingministers analyzed the excess steel

capacity as a global challenge that continues to

affect the sector, creating significant difficulties

for steel producers in advanced, emerging and

developing economies. They commented that

alleviating excess steel capacity becomes a

necessary condition for more stable, profitable

and sustainable commercial and employment

scenarios, which allows the industry to face aseriesoflong-termchallengesmoreeffectively.

Mexico participates in the Eleventh MinisterialConferenceoftheWTO

Mexico participates in the Eleventh Ministerial

ConferenceoftheWorldTradeOrganizationfrom

December 10 to 13, 2017 at Buenos Aires,

Argentina.Theprogramofactivities include: the

Symposium of Trade and Sustainable

Development 2017; Forumof Free Trade Zones;

the Product and Development Report:

Development and Economic Growth of the

commodity markets; Launch of the book "The

AgreementsoftheWorldTradeOrganization";E-

commerce: changes in the rulesof thegame for

customs, commerce and consumers; Digital

Economy Forum: the direction of growth,

regional trade and inclusion in Latin America;

Good Business Practices for effective consumer

protection; among others. The Ministerial

Conference is the most important decision-

making body of the WTO, composed of the

ministers of the 162 member countries of the

organization.

7thRoundofNegotiationsfortheModernizationoftheFTAEUMXEnds

The 7th Round of Negotiations for the

modernization of the Free Trade Agreement

between the European Union and Mexico

(FTAEUMX)concluded inBrussels,Belgium,after

almosttwoweeksofwork.Thisroundbeganwas

attendedby50officialsfromdifferentagenciesof

the public sector, as well as around 25

representatives of the private sector. Together,

all these efforts contributed to achieving key

commitments in strategic chapters such as:

investment, intellectual property, including

geographical indications, appellations of origin

and market access. In 2016, trade with the EU

was close to $62 billion dollars, which makes it

thethirdcommercialpartner.Likewise,theEUis

the second largest investor in Mexico, with an

accumulated investment of almost $175 billiondollars,between1999and2017.

11

11thMeetingofMIKTAForeignMinistersHeldinIstanbul

MIKTA is a forum for dialogue and cooperation

created in2013 that includesMexico, Indonesia,

theRepublicofKorea,TurkeyandAustralia.Asa

MIKTA member, Mexico is strengthening its

bilateral ties with non-traditional partners in

various geopolitical areas while increasing its

cooperation with them. Promoting initiatives tohelpaddressglobalchallenges.

COMMERCIALNEWSFROMBELIZE

SIBReport:ImportsDowninNovember

The Statistical Institute of Belize released the

latest figures in three categories, including the

External Trade Bulletin, the Consumer Price

Index,aswell as theLaborForce. Total imports

werevaluedatalittleoveronehundredandfifty-

fourmilliondollars,whichrepresentsadecrease

ofroughlythirteenmilliondollarsfrom2016.The

Mineral Fuels and Lubricants category fell from

sixteen point nine million dollars last year to

approximately thirteen million dollars in

November 2017, because no diesel fuel was

imported last month. In November 2016,

purchases of computer components and a one-

offacquisitionofdredgingequipmentamounted

tojustunderfortymilliondollarsinimports.This

year,thebringinginofcomputerpartsfellbysix

pointonemilliondollars.Exportswerealsodown

in November, sliding from nineteen point one

million dollars in 2016 to sixteen point nine

milliondollarsforthesameperiodthisyear.The

Consumer Price Index for November indicates

thattheaverageBelizeanhouseholdsawamean

increase of about one percent in the cost of

regularly purchased goods and services. The

price per gallon of premium gasoline rose

nineteen percent over the last twelve months,

peaking at twelve dollars and two cents in

November. The cost of diesel went up by

seventy-one cents per gallon. Punta Gorda

recorded the highest overall increase in

consumer prices, with an inflation rate of onepointninepercent.

TheLastGaspofPetrocaribeintheHouse

The Government introduced the third General

Revenue Appropriation Supplementary Bill of

2017, concerning the last of the Petrocaribe

funds spent by Government. After several years

of riding high on the funds obtained through

Venezuela to spend on everything from sports

stadia to tacos and pibil, the funds slowed to a

trickleandtheprogramwasbrieflysuspendedin

September due to concerns about supply from

the South American country, before being re-

started in October. The Bill goes to the Finance

and Economic Development Committee before

returning at the next House session for secondandthirdreadings.

Taiwan Comes ThroughAgain –US $40Millionover4Years

Aforty-millionU.S.dollarmotionforaloanfrom

theExport-ImportBankof theRepublicofChina

(Taiwan)wastabled in theHouse.The loan is to

be disbursed in four equal annual instalments

between 2017 and 2020, while its term is for

twenty years less graceperiodof three years to

be repaid later on. PrimeMinister Dean Barrow

reiterated the strength of the bond betweenTaiwanandBelize.

12

APPENDIX-STATISTICS

INDIA-BELIZE

I.BilateralTrade(Belize-India)inJanuary-Nov2017comparedtoJanuary-Nov2016(FiguresinThousandUSD)

Export Import Total Growth in percentage

of Belize’s Exports in2017over2016

Growth in percentage ofBelize’s Imports in 2017over2016

Belize’stradewithIndia

1,442

11,838

13,280

255.7%

-0.43%

Belize’stotalglobaltrade

274,428

802,037

1,076,465

20.02%

-5.49%

II.BelizeImportStatisticsToIndiaCommodity:_Total,AllCommodityChapters

YearToDate:January-November

Commodity DescriptionUnitedStatesDollars %

Change

2015 2016 2017 2017/2016

_Total AllCommodityChapters17,723,24

111,889,63

211,838,44

8 -0.43

24TobaccoAndManufacturedTobaccoSubstitutes 8,844,856 7,326,042 6,909,518 -5.69

61ApparelArticlesAndAccessories,KnitOrCrochet 974,731 1,133,397 1,133,397 -23.33

62ApparelArticlesAndAccessories,NotKnitEtc. 520,836 654,855 733,360 11.99

72 IronAndSteel 410,149 542,383 1,503,565 177.21

30 PharmaceuticalProducts705,511 280,964 571,790 103.51

38 MiscellaneousChemicalProducts 154,232 391,791 171,761 -56.16

68ArtOfStone,Plaster,Cement,Asbestos,MicaEtc. 40,112 34,704 93,829 170.37

13

63TextileArtNesoi;NeedlecraftSets;WornTextArt 172,434 83,833 207,024 146.95

84NuclearReactors,Boilers,MachineryEtc.;Parts 4,108,912 272,578 75,683 -72.23

40 RubberAndArticlesThereof 278,318 154,541 97,239 -37.08

III.BelizeExportStatisticsToIndia

Commodity:_Total,AllCommodityChapters

YearToDate:January-November

Commodity DescriptionUnitedStatesDollars %

Change

2015 2016 2017 2017/2016

_Total AllCommodityChapters 1,093,606 405,300 1,441,642 255.70

23FoodIndustryResidues&Waste;PrepAnimalFeed 47,557 125,697 792,148 530.20

07EdibleVegetables&CertainRoots&Tubers 0 0 211,792 n/a

61ApparelArticlesAndAccessories,KnitOrCrochet 43,889 0 249,919 n/a

44WoodAndArticlesOfWood;WoodCharcoal 0 0 88,716 n/a

62ApparelArticlesAndAccessories,NotKnitEtc. 23,506 0 52,002 n/a

71NatEtcPearls,PrecEtcStones,PrMetEtc;Coin 41,475 15,173 28,309 86.58

42LeatherArt;SaddleryEtc;HandbagsEtc;GutArt 10,508 0 15,760 n/a

63TextileArtNesoi;NeedlecraftSets;WornTextArt 0 0 1,376 n/a

65 HeadgearAndPartsThereof 0 0 693 n/a

22 Beverages,SpiritsAndVinegar 2,084 30,862 0 -100

14

APPENDIX-STATISTICS

INDIA-MEXICO

I.BilateralTradeinJanuary-October2017comparedtoJanuary-October2016(FiguresinMillionUSD)

Export Import Total Growth in percentage of

Mexico’s Exports in 2017over2016

GrowthinpercentageofMexico’s Imports in2017over2016

Mexico’stradewithIndia

2,436

4,189

6,625

57.02%

18.38%

Mexico’stotalglobaltrade

336,172

347,307

683,479

9.79%

8.67%

15

II.MexicoImportStatisticsFromIndia

January-October

HSCode Commodity

UnitedStatesThousdandsofDollars %Change

2015 2016 2017 2017/2016

_Total AllCommodityChapters

3,426,484 3,538,252 4,188,564 18.38

87Vehicles,ExceptRailwayOrTramway,AndPartsEtc

929,792 1,347,131 1,660,688 23.28

29 OrganicChemicals335,679 286,059 340,440 19.01

84NuclearReactors,Boilers,MachineryEtc.;Parts

248,247 259,403 341,573 31.68

85ElectricMachineryEtc;SoundEquip;TvEquip;Pts

261,849 246,544 278,585 13.00

76 AluminumAndArticlesThereof350,508 159,239 180,954 13.64

72 IronAndSteel83,886 80,934 148,018 82.89

98 SpecialClassificationProvisions,Nesoi86,878 89,523 114,889 28.33

62 ApparelArticlesAndAccessories,NotKnitEtc.84,918 90,884 88,938 -2.14

39 PlasticsAndArticlesThereof86,211 79,502 83,617 5.18

69 CeramicProducts4,060 20,745 77,810 275.07

71NatEtcPearls,PrecEtcStones,PrMetEtc;Coin

86,623 85,324 72,204 -15.38

90Optic,PhotoEtc,MedicOrSurgicalInstrmentsEtc

49,883 55,044 62,964 14.39

61ApparelArticlesAndAccessories,KnitOrCrochet

79,450 68,806 61,994 -9.90

73 ArticlesOfIronOrSteel134,690 56,298 63,867 13.45

30 PharmaceuticalProducts68,905 85,483 68,462 -19.91

32Tanning&DyeExtEtc;Dye,Paint,PuttyEtc;Inks

58,373 58,541 59,167 1.07

40 RubberAndArticlesThereof43,422 38,930 43,302 11.23

09 Coffee,Tea,Mate&Spices27,755 21,975 31,568 43.66

38 MiscellaneousChemicalProducts30,173 34,475 36,115 4.76

54ManmadeFilaments,IncludingYarns&WovenFabrics

34,087 25,975 30,316 16.71

12OilSeedsEtc.;MiscGrain,Seed,Fruit,PlantEtc

14,899 20,808 28,454 36.75

16

III.MexicoExportStatisticsToIndia

January-October

HSCode Commodity

UnitedStatesThousandsofDollars %Change

2015 2016 2017 2017/2016


1,637,850 1,551,615 2,436,385 57.02

27MineralFuel,OilEtc.;BituminSubst;MineralWax

1,245,520 1,157,349 1,821,118 57.35


118,739 115,205 247,253 114.62


14,506 29,904 81,834 173.65


73,396 60,520 75,470 24.70


63,078 42,765 47,471 11.01

29 OrganicChemicals21,155 35,410 30,406 -14.13

32Tanning&DyeExtEtc;Dye,Paint,PuttyEtc;Inks

7,186 13,532 25,928 91.61

72 IronAndSteel20,422 7,947 13,077 64.54

30 PharmaceuticalProducts3,164 4,471 9,113 103.81

74 CopperAndArticlesThereof2,234 102 10,060 9755.79

17

IV.MexicoImportStatisticsFromWorld

January-October

HSCode Commodity


2015 2016 2017 2017/2016


330,751,548

319,595,42

5

347,306,63

5 8.67


70,888,967 70,003,626 71,070,294 1.52


56,581,620 55,435,602 58,685,708 5.86


30,783,513 30,698,179 34,200,615 11.41


22,542,245 19,769,571 28,267,874 42.99

39 PlasticsAndArticlesThereof18,710,910 18,419,307 19,242,792 4.47


12,479,514 11,788,091 12,506,626 6.10

98 SpecialClassificationProvisions,Nesoi9,331,281 10,226,200 12,059,727 17.93

72 IronAndSteel8,001,364 7,039,596 8,628,489 22.57

73 ArticlesOfIronOrSteel7,816,829 7,243,128 7,886,324 8.88

29 OrganicChemicals7,000,352 6,052,077 7,339,889 21.28

18

V.MexicoExportStatisticsToWorld

January-October

HSCode Commodity


2015 2016 2017 2017/2016


318,803,58

2 306,206,600

336,171,69

8 9.79


75,710,487 71,971,430 83,339,724 15.80


66,963,276 61,742,135 66,780,811 8.16


49,425,809 51,014,303 54,653,270 7.13


20,079,781 14,667,281 17,669,440 20.47


12,536,202 13,378,203 14,376,913 7.47

94Furniture;BeddingEtc;LampsNesoiEtc;PrefabBd

8,176,872 8,484,851 8,830,184 4.07

39 PlasticsAndArticlesThereof6,953,101 6,943,710 7,494,721 7.94

07 EdibleVegetables&CertainRoots&Tubers4,673,178 5,469,291 5,453,580 -0.29


5,961,653 6,282,551 5,805,369 -7.60

08EdibleFruit&Nuts;CitrusFruitOrMelonPeel

3,893,466 4,350,322 5,604,059 28.82

19

VI.MexicoImportStatistics

January-October

PartnerCountryUnitedStatesThousandsofDollars %Change

2015 2016 2017 2017/2016

World330,751,548 319,595,425 347,306,635 8.67

UnitedStates156,480,838 147,748,977 160,216,091 8.44

China58,502,895 57,833,256 61,029,873 5.53

Japan14,461,364 14,571,221 15,214,461 4.41

Germany11,689,174 11,396,360 13,644,374 19.73

KoreaSouth12,572,681 11,288,774 13,330,839 18.09

Canada8,133,169 7,987,476 8,011,076 0.30

Malaysia6,142,246 6,799,640 6,483,230 -4.65

Taiwan5,531,313 5,589,496 6,122,880 9.54

Italy4,165,746 4,369,897 5,083,965 16.34

Thailand4,080,817 4,347,232 4,901,009 12.74

Brazil3,799,210 3,927,182 4,507,965 14.79

India(12th)3,426,484 3,538,252 4,188,564 18.38

Spain3,762,506 3,703,785 4,116,427 11.14

Vietnam3,037,162 3,317,268 3,903,274 17.67

20

VII.MexicoExportStatistics

January-October

PartnerCountryUnitedStatesThousandsofDollars %Change

2015 2016 2017 2017/2016

World318,803,582 306,206,600 336,171,698 9.79

UnitedStates257,703,497 248,064,624 269,438,327 8.62

Canada8,888,608 8,654,518 9,314,428 7.63

China4,037,120 4,223,909 5,492,531 30.03

Germany3,043,607 2,901,026 5,528,329 90.56

Spain3,098,390 2,681,844 3,447,977 28.57

Japan2,533,132 3,100,913 3,301,744, 6.48

Brazil3,372,164 2,439,317 2,941,712 20.60

Colombia3,040,405 2,526,450 2,706,606 7.13

KoreaSouth2,250,719 2,028,650 2,704,601 33.32

India(10th)1,637,850 1,551,615 2,436,385 57.02

UnitedKingdom1,627,805 2,720,713 1,869,256 -31.30

21

VIII.MexicoTotalTrade

January-October

PartnerCountryUnitedStatesDollars %Change

2017/2016

2015 2016 2017

World649,555,130

625,802,02

5

683,478,33

3 9.22

UnitedStates414,184,335

395,813,60

2

429,654,41

9 8.55

China62,540,015 62,057,165 66,522,405 7.20

Germany14,732,782 14,297,386 19,172,704 34.10

Japan16,994,496 17,672,135 18,516,206 4.78

Canada17,021,777 16,641,994 17,325,504 4.11

KoreaSouth14,823,401 13,317,425 16,035,441 20.41

Spain6,860,896 6,385,629 7,564,404 18.46

Malaysia6,242,651 7,008,198 7,167,306 2.27

Brazil7,171,374 6,366,499 7,449,678 17.01

Taiwan5,765,088 5,783,969 6,463,903 11.76

India(10th)5,064,335 5,089,868 6,624,949 30.16

Italy5,586,382 5,700,715 6,128,270 7.50

Thailand4,333,903 4,714,749 5,393,900 14.40

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