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NAFTA RELOADED: Strengthening Competitiveness in
North America
June 20151
I. Strategic Regional Integration
II. Trilateral and Bilateral initiatives for further integration
III. Mexico’s Competitiveness Perspective
IV. Business Opportunities
NAFTA
2
The 14th largest world economy 11th largest world exporter and
1st in Latin America 9th largest world importer 5th leading recipient of FDI
among emerging economies
$1.1 trillion economy $797 billion in total trade $390 billion in FDI attracted
since 1999 116 million consumer market/
60% middle class
Mexico is a growing economy
GDP
Source: INEGI, SE-DGIE, WTO, UNCTAD, Brookings Institution, SHCP. e/ Estimate Pre-Criterios de Politica Economica (March 31, 2015)
Total Exports$398 billion
1.9%
2013
2.1%
2014
3.2%4.2%
2015e
3
Total Imports$400 billion
Mexico is committed to open markets
Two decades of sound macroeconomic policies and free trade policies are paying off:• The importance of trade as a percentage of GDP has increased from 29% in 1993 to
nearly 70% in 2014.
Mexican Exports by Region in 2014
North America82.9%
Latin America
6.0%
Europe5.4%
Asia3.2%
Other2.5%
Source: Mexico’s Ministry of the Economy. Asia includes: China, Japan, South Korea, Taiwan, Singapore, and Hong Kong.
North America Latin America EU Asia
151
7 6 2
330
24 20 13
119%
243%233% 550%
% Share Value in billions
20002014
4
5
Mexico has privileged access to 2/3 of the world’s GDP
Mexican Imports by Region in 2014
North America
51%
Latin America
4%
Europe12%
Asia26%
Other7%
North America Latin America EU Asia
131
5 15 20
205
14.1 46.18105.44
57%
182%208% 427%
% Share Value in billions
20002014
Mexican producers and consumers have access to a wider selection of high-quality products and inputs at better prices:• 75% of Mexican imports are intermediate goods for further processing, and 10%
represent acquisitions of capital goods.
Source: Mexico’s Ministry of the Economy. Asia includes: China, Japan, South Korea, Taiwan, Singapore, and Hong Kong.
6
Mexico’s network of trade agreements
• FTAs with 45 countries which account for 70% of world GDP, two-thirds of global imports and a billion consumers.
Portugal
Netherlands
Switzerland
Austria
Spain FranceItaly
Greece
Germany
Belgium
Luxembourg
FinlandDenmark
Ireland
United Kingdom
SwedenNorway
Iceland
Liechtenstein
Israel
South
Korea
Australia
Japan
28 BITs
10 FTAs
9 ALADI Agreements
45 countries
El Salvador Costa Rica
Nicaragua
Honduras
Guatemala
Canada
United
States
Chile
Argentina
Colombia
Brazil
Cuba
Mercosur
Uruguay
Peru
Estonia Latvia
Lithuania
Slovakia
PolandCzech Rep.
Bulgary
Romania
Slovenia
Croatia
Malta
In 2014, Mexico signed a FTA with Panama
Mexico’s ongoing trade negotiations
• TPP is currently the most important plurilateral trade negotiation
The 12 current member’s economies will create a combined market of over 780 million inhabitants, total exports of $4.3 trillion, and a trans-pacific $27.5 trillion output.
High-standard agreement.
• EU – Mexico trade agenda: deepening FTA
Investment: Negotiate a single agreement for the promotion and protection of investments.
Agricultural sector: Inclusion of sensitive agricultural and fishery products, recognition of geographical denominations of agricultural products.
Services: Further liberalization to the foreign investment in financial services, telecommunications, environmental services and energy.
• FTA’s
Mexico is negotiating with Turkey and Jordan.
• Trade in Services Agreement (TISA)
50 countries participate in the negotiations, representing 70% of the world’s trade in services.
7
Since NAFTA, U.S.-Mexico trade has multiplied by six
Mexico is the U.S.’ third-largest trading partner
0
100
200
300
400
500
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
42 51 46 57 71 79 87 111 102 97 97 111 120 134 137 152 129163
198 217226 240
4050 62
7486 95
110
136 131 134 138156
170198 211
216
177
230
263278 280 294
US Exports to Mexico US Imports from Mexico
$ B
illio
n
82
235231233247
197173
157131
108101
332
290267
348367
305
392
NAFTA
461
U.S.-Mexico Trade506
Source: USDOC. Job figure is from 2008, according to Trade Partnership Worldwide, LLC and the U.S. Chamber of Commerce, 2010 as reported by the Mexico Institute, Woodrow Wilson International Center for Scholars in “Working Together: Economic Ties between the United States and Mexico.
494
8
534
Source: USDOC
9
Mexico is the U.S.’s second-largest export market and third-largest supplier of goods
• U.S. exports to Mexico reached $240 billion last year, which represents more than 14.8% of its sales worldwide.
• U.S. imports from Mexico reached $294 billion. Mexico has a market share of 12.5% on US total imports.
0 100 200 300
185
199
210
230
240
Germany, UK, France,Belgium, Italy & Netherlands
HK, Singapore, South Korea & Taiwan
US ExportsBillion dollars, 2014
Mexico
BRIC
South/CentralAmerica
0 100 200 300
150
266
287
294
Germany, UK, France,Italy & Netherlands
Japan, HK, Singapore, S Korea & Taiwan
US ImportsBillion dollars, 2014
Mexico
South/CentralAmerica
Mexico is a strategic production partner for U.S. goods and exports worldwide
When Mexico exports, the United States exports.
• There is a 40% U.S. value-added in Mexico’s exports to the U.S.
Mexico Canada Malaysia South Korea China Japan
40%
25%
8%5% 4.0%
2%
Source: NBER, Global Value database in Koopman, Powers, Wang, Wei (September 2010, revised March 2011)
MEXICO
U.S. exports also benefit from Mexico’s network of free trade agreements with 45 countries, providing preferential market access to 70% of world GDP and two-thirds of global imports.
Mexico and the United States do not simply trade goods; we work together to manufacture them
U.S. value added in final exports of selected countries to the U.S.
10
11
U.S. exports to Mexico are geographically diverse
49 U.S. states have significantly increased exports to Mexico: 47 states have at least doubled their sales since NAFTA was enacted.
U.S. Export to Mexico by State 2014million dollars, growth rate 1993-2014
Source: SE- NAFTA with data from Wisertrade.
Largest Exporters to MexicoMost Dynamic Exporters to Mexico
187%
1243% 808% $54
1868% $5,023 $213
$320
196% 536% 1034% $450
$372 646% 7116% $238 687% $2,320
$301 $344 511% $196
300% 20.7% 304% $1,281
$31 1131% 4.2% 426% $2,658
$1,339 -5.5% 7.7% -19% $108
1495% 1345%
$405 $741 591%
-6.7% $1,069 -21% $5
246% -22.2%
$610 606%
-23.0% 1918% $738 17.5%
$1,549 1255%
-6.9% $1,225
-12.8%
89%
$10
304%
$573 -64%
$1
7%
$2
$462571%
DC
MD
MA
CTRI
NJ
WA808%
$2,736
HI
DE
NH
VTME
NC
SC
FL
GA
VA
NYWV
PA
OH
KY
TN
MS
LA
AR
IN
MI
IL
WI
IA
MN
824%
MO
OK
TX
KS
NE
SD
NDMT617%
$93
WY
CO
NM
AK
AZ
UTNV
CA
OR ID
P.R.
290%
$25,419
348%
$8,638
404%
$102,6351,360%
$7,320
193% $2,214
495%
$3,012921%
$4,771
571%
$7,924
697%
$5,988
734%$10,804
471%
$3,732
235%
$2,876
625%
$2,978
1,358%
$2,115
1,072%
$2,309497%
$2,350
881%
$2,836
1,456%
$2,332
529%
$1,783
$2,240
463%
$1,219
AL
1,030%
$2,338
V.I.
IN
2014
MD
MA
CTRI
NJ
WA
DE
NH
VT ME
NC
SC
FL
GA
VA
NYWV
PA
OH
KY
TN
MS
LA
AR
IN
MI
IL
WI
IA
MN
MO
OK
TX
KS
NE
SD
NDMT
WY
CO
NMAZ
UTNV
CA
OR ID
AL
12.0%
40.9% 10.8%
14.6%
12.8%
5.3%
17.0%
6.1%
16.6%
10.7%
10.5%
19.4%
8.5%
3.8%
1.9%
11.2%
8.4%14.9%
15.4%
14.2%11.6%
5.9%
7.6%
3.8%
2.0%
8.0%
14.5%
21.6%
7.1%
8.2%
9.3%
1.8%
9.7%
11.5%
6.1%
9.6%
3.3%
40.9%
7.2%
10.2%
1.8%
12.1%
3.2%
3.0%
6.3%
5.8%
6.0%
35.5%
12
Mexico is an important export destination for each U.S. state
Source: SE- NAFTA with data from Wisertrade.
Mexico’s Share in U.S. Exports by State 2014
1
2
2
2
2
2
2
2
2
22
22
222
2
22
2
3
333
1 1
1
1 2 3 Mexico’s rank as an export market for the state
Mexico ranks among the top 3 export markets for 31 states
32
2
2
13
6 millions U.S. jobs depend on trade with Mexico
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Greater than 200
100 - 199
50 - 99
Less than 50
MD
MA
CTRI
NJ
WA128.3
HI
DE
NH
VTME
NC
SC
FL
GA
VA
NYWV
PA
OH
KY
TN
MS
LA
AR
IN
MI
IL
WI
IA
MN
MO
OK
TX
KS
NE
SD
NDMT20.6
WY
CO
NM
AK
AZ
UTNV
CA
OR ID
692.2
111.2
463.183.2
183.4122.1
252.9224.5
175.2
246.4
381.2
186.2
85.8
75.6119.8
117.7
64.8
59.3
117.4
161.4
AL
342.1
75.629.8
53.6 54.9
12.3
105.8
36.2
14.8
29.4
68.5
40.6
18.0
15.6
51.4
50.0 86.2
120.8
30.3
14.4 27.7
28.5
142.6
20.4
74.5
174.3
18.3
115.5
Source: Jobs figures are from 2008, according to Trade Partnership Worldwide LLC/ U.S. Chamber of Commerce, 2010 as reported by the Mexico Institute, Woodrow Wilson International Center for Scholars in “Working Together: Economic Ties Between the United States and Mexico”.
U.S. Employment Related to Trade with Mexico(Jobs in thousands)
14
GCCCemexIndustrias CH
Gruma
Grupo Alfa
Banorte
Grupo Mexico LalaMexichem
Katcon
CinepolisChedraui
Bachoco
Bimbo
Mexican companies are investing and creating jobs across the U.S.
Source: SE- NAFTA with information from iMap. FDI figure from Bilateral FDI Statistics 2014 by the UNCTAD, using a historical-cost basis 2012
Grupo Bal
La CosteñaSanluis Rassini
Softtek Kuo
KaltexBio-Pappel
Metalsa
LamosaMinsa
The U.S. is the main destination for Mexican FDI, with Mexican companies investing over $43 billion
Mexican companies in the U.S. (density)
Mexican-owned companies operate more than 6,500 business establishments in the U.S.
IUSA
I. Strategic Regional Integration
II. Trilateral and Bilateral initiatives for further integration
III. Mexico’s Competitiveness Perspective
IV. Business Opportunities
NAFTA
15
16
Challenges for the NAFTA Partners
Expand NAFTA benefits to all sectors and regions of the three countries.
Streamline the integration of the three economies.
Develop new elements of competitiveness.
Strengthen regional value chains.
Efficient border management.
Economic environment of increased competition and moderate growth.
17Fuentes: SCT/ US Department of Transportation.
Cross-border trade facilitationSet a concrete goal for reducing the maximum time for crossing the border – some have even gone as far as suggesting a maximum crossing time of 30 minutes.
• Border infrastructure: To develop strategic corridors to link major industrial clusters on both sides of the border.
• Border regulation: the single-window initiative in the US will contribute to harmonizing customs procedures and requirements. In Mexico, the single window has been in operation for the past three years.
1 million people and 300 thousand vehicles crossing the border daily.
1 million dollars in products are traded every minute along the border.
18
Increasing bilateral trade requires the expansion of trade opportunities to more states
2013
MD
MA
CTRI
NJ
WA
DE
NH
VT ME
NC
SC
FL
GA
VA
NYWV
PA
OH
KY
TN
MS
LA
AR
IN
MI
IL
WI
IA
MN
MO
OK
TX
KS
NE
SD
NDMT
WY
CO
NMAZ
UTNV
CA
OR ID
AL
9.5%
36.8% 9.8%
11.0%
10.5%
4.3%
12.2%
1.8%
15.6%
19.1%
6.4%
29.7%
8.6%
7.1%
1.6%
8.5%
10.8%10.8%
15.6%
10.0%10.0%
3.1%
7.0%
5.3%
2.4%
5.9%
10.3%
17.1%
6.9%
10.5%
5.1%
2.6%
8.7%
10.8%
5.2%
9.5%
2.6%
24.6%
3.6%
6.1%
2.0%
11.0%
3.9%
3.0%
4.0%
2.7%
15.0%
33.1%
Mexico’s share in total U.S. trade = 13.2%
Mexico’s share in total trade by state 2013
Share above averageShare below average
Source: SE- NAFTA with data from Wisertrade.
19
Building a competitive North American Partnership: Trilateral Initiatives
NAFTA partners keep working on initiatives to promote integration and competitiveness in the region:
Trilateral level initiatives:
North American Competitiveness Work Plan (NACWP)
North America Leader’s Summit (NALS)
Bilateral level initiatives:
High Level Economic Dialogue (HLED).
US-Mexico CEO Dialogue
Building a competitive North American Partnership: Trilateral Initiatives
North America Leader’s Summit (NALS) and North American Competitiveness Work Plan (NACWP).
These initiatives include activities designed to strengthen competitiveness and enhance integration in North America:
Investment Cooperation
Tourism Promotion
Border Facilitation Cooperation
Regulatory Cooperation
Entrepreneurship, Innovation, and Joint Research
Alignment of International Trade Policies
North American Stakeholder Outreach
North American Workforce Development
20
Building a competitive North American Partnership: Bilateral initiatives
US-Mexico High Level Economic Dialogue (HLED)
In May 2013, President Obama and President Peña Nieto announced the formation of the HLED to promote economic growth in the US and Mexico, create jobs for citizens on both sides of the border, and ensure our nations can compete globally.
It will advance strategic economic and commercial priorities central to promote mutual economic growth, job creation and global competitiveness.
It will build on a range of existing successful bilateral dialogues and working groups, and is envisioned as a mechanism to advance shared strategic priorities in the following areas:
• Promoting Competitiveness and Connectivity
• Fostering Economic Growth, Productivity and Innovation
• Partnering for Regional and Global Leadership
21
Building a competitive North American Partnership: Bilateral initiatives
High Level Economic Dialogue 2015 plan:
Vice President Biden hosted the January 6, 2015 meeting in Washington – the second cabinet-level meeting of the dialogue –. It was an opportunity to take stock of the accomplishments between Mexico and US to date and establish new priorities for 2015.
Energy and climate change cooperation.
Deepen regulatory cooperation.
Strengthen and modernize our border.
Increase educational exchanges and boost workforce development.
Support transparency and anti-corruption efforts
Promote entrepreneurship and innovation.
Promote investment.
Promote women’s economic empowerment.
22
Building a competitive North American Partnership: Bilateral Initiatives
US-Mexico CEO Dialogue. Bilateral private sector forum that seeks to engage on key economic and trade issues that impact the relationship between the U.S. and Mexico. The overarching priorities of this initiatives are:
Regulatory Cooperation
Trade Facilitation
Border Infrastructure
Transportation Infrastructure
Communications Infrastructure
Human Capital Development
Energy
23
24
Building a competitive North American Partnership: Regional Initiative
MOU Government of California – Mexico’s Ministry of the Economy. The MOU establishes a flexible framework that reinforces areas of cooperation and integration aimed at contributing to foster economic growth, job creation and strengthening North American competitiveness in the global economy. Such areas include:
Establishing a bilateral working group
Expanding and facilitating trade and investment cooperation in specific sectors such as:
o Advance manufactureo Alternative and renewable energyo Biotecho Information technologyo Agriculture and agriculture technology
Fostering scientific and technological collaboration between companies and academia
Supporting trade missions
I. Strategic Regional Integration
II. Trilateral and Bilateral initiatives for further integration
III. Mexico’s Competitiveness Perspective
IV. Business Opportunities
NAFTA
25
Ambitious domestic policies to strengthen economic competitiveness
Economic reforms
• Labor
• Education
Unilateral tariff reduction
• Since 2009, Mexico committed to unilaterally lowering its average applied tariff.
• 64% of industrial goods from our non-FTA partners are duty-free since 2013.
Regulatory improvement
• Eliminate red tape – over 16,000 administrative regulations and 2,800 needless procedures have been eliminated.
• Strengthen competition legal framework, enhance transparency, recognize equivalence of some U.S. standards and expedite process to start a business (www.tuempresa.gob.mx).
Trade facilitation
• Foreign trade regime simplification, including a single window for trade (www.ventanillaunica.gob.mx)
• Customs modernization.
• Telecommunications• Financial sector• Energy
• Fiscal
30
27
Structural reforms that will enhance Mexico’s productivity
Mexico continues its economic transformation that started over 20 years ago with the enactment of NAFTA through the implementation of structural reforms in such areas as:
28
Mexico’s competitive advantage
Coupled with these structural reforms, Mexico is working to fully exploit our competitive advantages:
Mexico ranks as the second largest economy in Latin America andthe fourteenth worldwide.
Mexico has competitive manufacturing costs and has beenconsolidating itself as a leader in advanced manufacturing and high-technology.
Privileged location connecting the Atlantic and Pacific oceans, aswell as major consumer markets, making the country a naturalplatform for exports and increasingly sophisticated manufacturing.
Mexico has a demographic bonus similar to that experienced in Asiaover the last two decades. The Mexican population is the realdriving force for development, and in Mexico half its population is26 years or less.
29
Mexico has become a magnet for investment
• The U.S. is Mexico’s #1 source of foreign direct investment, accounting for nearly 50% total FDI.
• More than 61,000 companies in Mexico have FDI, among them 26,756 companies have U.S. capital.
Source: Mexico’s Ministry of the Economy.
Accumulated FDI in MexicoBillion dollars
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
14
3262
86105
130155
176
208
237254
280304
323
367389
U.S. Others
Expanding market access to the world will also increase U.S. FDI’s rate of return
30
Mexico offers an array of business opportunities for U.S. companies
Manufacturing46%
Financial Services
25%
Wholesale & Retail12%
Other Services9%
Mining3%
Other5%
US FDI in Mexico by SectorAccumulated 1999-2014
Source: SE- NAFTA with data from SE-DGIE. Sectors defined by NAICS. Financial Services includes Financial Services and Real Estate Rental and Leasing.
I. Strategic Regional Integration
II. Trilateral and Bilateral initiatives for further integration
III. Mexico’s Competitiveness Perspective
IV. Business Opportunities
NAFTA
31
32
Mexico ranks 20th in Harvard and MIT's Atlas of Economic Complexity.
• Mexico manufactures and exports a large number of sophisticated products.
• In 2014, Mexico exported over $191 billion of medium and high tech products to the U.S. alone which accounted for 17% of its GDP.
Source: INEGI/ Presidency/ Harvard and MIT, Atlas of Economic Complexity/ OECD, wisertrade using NAICS.
Mexico is also a growing exporter of high-tech products
33
Medium and high tech products exports as a percentage of GDP
No. Country % GDP1 South Korea 30.4%2 Germany 28.1%
3 Mexico 17.2%4 China 15.0%5 France 13.2%6 Italy 12.9%7 United Kingdom 11.1%
8 Japan 9.9%9 Canada 7.3%
10 Turkey 7.0%
11 South Africa 5.8%
12 United States 5.1%13 India 4.5%14 Indonesia 4.1%15 Argentina 3.7%
Source: IHS Data – Global Insight; ProMéxico’s Analysis. Data in USD Real terms, 2005, considering de G20 countries.
Medium Technology (MT):
• Specialty Chemicals• Machinery, Equipment, Appliance• Electrical Industrial Machinery• Motor Vehicles & Parts Total• Motorcycles & Transport. Equipment• Railroads & Equipment
High Technology (HT):
• Aircraft & Spacecraft• Advanced materials • Computers & Office Machinery• Communication Equipment• Medical, Precision & Optical
34
MEDICAL DEVICES•We are the largest exporter in Latin
America and main supplier to the US.
AUTOMOTIVE AND AUTOPARTS• 7th producer and 4th exporter globally of
new light vehicles in the world.
AEROSPACE•Mexico is the 6th supplier to the
American aerospace industry.
ELECTRIC-ELECTRONIC• Leading flat television screen exporter
in the world.
Source: FEMIA/ GTA/ AMIA/ OICA. .
398 billions in exports50% medium and high tech
manufactures
Key Sectors
35Source: AMIA / Ministry of Economy / WSJ
• Mexico is the 8th largest auto parts producer in the world and
the 4th largest car exporter
• 83% of the Mexican automotive
industry production is exported to over 100 countries.
• 19 of the most important OEM’s in
the world have plants in Mexico and over 300 TIER1 suppliers with facilities in the country.
Mexico is making over 3 million vehicles a year, with output
expected to increase 38% by 2016
0
0.5
1
1.5
2
2.5
3
3.5
4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
1.6
2.02 2 2.1
1.5
2.32.5
2.9 3 3.13.5
3.7
Light Vehicle Production in Mexico (millions)
Automotive
36
Punching and stamping
10 main
opportunities
Main opportunities in the automotive global supply chain
Source: ProMéxico with information provided by main automotive companies.
+10 MORE
9.1bn
USD
11.8bn
USD
6.4bn
USD
9.2bn
USD
9.9bn
USD
3.3 bn
USD
2.2bn
USD
2.5bn
USD
3.9bn
USD
2.7bn
USD
37
Aerospace
Source: KPMG/ US Census Bureau/ Ministry of Economy/ Bombardier.
According to KPMG, aerospace
parts manufacturing costs in
Mexico are approximately 16%
lower than in the United States.
• There are 270 aerospace
companies in Mexico.
• In 2012, 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 an airplane with
Mexican technology takes-off.
• Mexico is the 6th supplier to the
American aerospace industry.0 20 40 60 80 100 120
Mexico
Russia
Brazil
The Netherlands
Canada
France
United Kingdom
Italy
USA
Germani
Australia
Japan
Cost Index
Aerospace parts manufacture(US=100)
38
Main process in aircraft manufacturing in Mexico
Source: Promexico
39
Treatments
Main opportunities in the aerospace global supply chain
Source: ProMéxico with information provided by main automotive companies.
7 main
opportunities
40
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 have operations in Mexico.
According to KPMG, electronics
assembling costs in Mexico are
15% lower than in the United
States.
Source: Global Trade Atlas/ KPMG/ Manufacturer Market Insider.
0 20 40 60 80 100 120
Mexico
Russia
Brazil
Canada
The Netherlands
France
United Kingdom
Italy
USA
Germany
Australia
Japan
Cost Index
Electronics assembling(US=100)
41
Metal stamping
10 main
opportunities
Main opportunities in the electric global supply chain
Source: ProMéxico with information provided by main automotive companies.
0.7bn
USD
1.6bn
USD
0.6bn
USD
0.8bn
USD
1.0bn
USD
0.4bn
USD
0.1bn
USD
0.1bn
USD
0.5bn
USD
0.2bn
USD
42
Medical devices
According to KPMG, medical
device manufacturing costs in
Mexico are 23% lower than in the
United States.
• 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.
Source: Global Trade Atlas/ KPMG.
0 20 40 60 80 100 120
Mexico
Russia
Brazil
United Kingdom
The Netherlands
France
Canada
Italy
USA
Germany
Australia
Japan
Cost Index
Medical devices manufacturing(US=100)
43Source: Global Trade Atlas/ KPMG.
Agrifood
• Mexico is the leading exporter of
• Avocado.• Mango. • Guava.• Papaya.• Processed peppers.• Sweetened, powdered cocoa.• Fresh tomato.• Beer.
• And the second exporter of
• Watermelon.• Limes.• Raspberry, blackberry and mulberry.75.0 80.0 85.0 90.0 95.0 100.0
México
Brasil
Reino Unido
Países Bajos
Italia
Francia
Canadá
Alemania
EU
Australia
Japón
Cost index
Food processing(US=100)
According to KPMG, processed
food costs in Mexico are 15%
lower than in the United States.
44
Information technology
According to KPMG, software
development costs in Mexico are
40% lower than in the United
States.
• Mexico is the natural IT services
supplier to the Latin and North
American markets
• Mexico is ranked as the best
destination in America for providing
IT services, according to A.T.
Kearney.
• Gartner Consulting ranks Mexico
3rd global IT services supplier.
• Mexico is ranked 2nd investment
destination in Latin America with a
23% share in software projects in
the region.
Source: Competitive Alternatives 2012, KPMG/ A.T. Kearney/ Gartner/ CEPAL.
0 20 40 60 80 100 120
Mexico
Canada
United Kingdom
The Netherlands
Brazil
France
USA
Germany
Italy
Australia
Japan
Cost Index
Software development(US=100)
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The energy Reform allows
foreign investors to
participate in profit
sharing contracts on oil
and natural gas
exploration and
production.
Enables collaboration with
the private sector to
engage in transmission
and distribution of
electricity.
Creates a wholesale
market for power
generation.
5th oil producer in the world
and 13th in refining capacity.
Mexico is the 3rd most
attractive country in the world
to invest in solar projects.
The regions with the greater
potential for wind energy in
Mexico are the Isthmus of
Tehauntepec (Oaxaca), the
Gulf of Mexico, Baja
California, and the Yucatan
Peninsula.
Opportunities in the Energy Sector
Fuente: PEMEX / EPIA.
Salvador BeharTrade and NAFTA Office
SECRETARIA DE [email protected]
MX-US Tradewww.naftamexico.net
(202) 728-1707Washington, DC
46