Trade Commission of Mexico for Western Canada and the Pacific Northwest of USA JALISCO Business opportunities Portland Hispanic Metropolitan Chamber July 26, 2006
Mexico – A Snap Shot • Population: 106 million • GDP per capita: + $6.000 • 74% urban • Under 20 – 44% • Wealthy – 5% • Upper Middle – 18% • Middle Class – 37% • Poor – 40%
Tijuana, BC Monterrey, NL Guadalajara, Jal Mexico, City Mexico A large & complex market
Mexico: Commercial policy • 1983 Mexico = a commercial strategy policy based on market economy. • Deregulation + commercial opening. • Improvement of the export performance + EXPORTS + EXPORTERS • THE CHALLENGE: TO BE MORE COMPETITIVE GLOBALLY.
Mexico: International agreements FTA Island Liechtenstein Norway Switzerland FTA Colombia Venezuela PFTA Uruguay NAFTA USA Canada FTA Bolivia FTA Israel FTA Guatemala Honduras El Salvador GATT (OMC) FTA Chile APEC OCDE FTA Costa Rica FTA Nicaragua FTA European Union FTA Japan 1986 1992 1993 1994 1995 1998 2000 2001 2005
GNP 2002-2005 (Billions US dollars) 1. United States 10,082 2. Japan 4,146 3. Germany 1,870 4. United Kingdom 1,422 5. France 1,330 6. China 1,155 7. Italy 1,090 8. Canada 700 9.Mexico 618 10. Brazil 605 Mexico in the world
Mexico in the world • 8thexport country worldwide • 1st export country in Latin America • Mexico total trade = total trade of Brazil, Chile & Argentina together • In the period 1994-2005 Mexico has been a leading recipient of FDI only after China and Brazil • Inflows of FDI represent almost twice the inflows of India and Korea put together • Export companies paywages 37%higher than non-export
States with highest foreign trade flows Baja California Chihuahua Coahuila Nuevo León Guanajuato Veracruz Jalisco Puebla Estado de Mexico Mexico City
Mexico as manufacturing centre NAFTA REGION Finished Products Parts and Components ASIA EUROPE Parts and Components Parts and Components Finished Products CENTRAL & SOUTH AMERICA
Incentives to do business in Mexico • Location (Atlantic and Pacific Ocean). • Internal market. • External market (USA, Europe and Latin America). • Competitive work force. • Production flexibility (low volume – high mix)
Jalisco It is the financial and commercial centre of the Mexican West coast
JALISCO 3rd most important Mexican State 4th recipient of DFI Area: 80,137 km2, (4.1% of Mexico) Coastline: 345 km 82% Urban areas 38% less than 20 years old MAIN INDUSTRIES Food & beverages Electric & electronic Footwear & leatherwear Plastic products Textile & garments Decorative items & handicrafts Metalmecanic Automotive & auto parts Chemical & pharmaceutical Building materials DYI Tourism Highlights
Highways Railroads International Airports Distances from Guadalajara to... Km Strategic Location Tijuana, B.C. 2,306 . Mexicali, B.C. 2,119 Cd. Juárez, Chih. 1,578 Nogales, Son. 1,694 Piedras Negras, Coah. 1,137 Nuevo Laredo, Tamps. 1,013 Matamoros, Tamps. 1,117 Altamira Port 807 GUADALAJARA Pto. Tampico 741 Pto. Manzanillo 313 México City 542
12 Industrial Parks in the interior of the state Infrastructure Railroads • 1,108 Km • Roads • Toll ways 566 Km • Toll free 5,314 Km • Communications • Telephone lines 1,060,000 • Population with services862,000 FIBER OPTICS 100% • Rail port • Inter modal terminal • Automotive distribution center • Train to Truck unloading place Average Temp: 54 Fº
Flight times to main U.SA. cities Portland New York 4.15 hrs. Atlanta 3:10 hrs. San Francisco 3.50 hrs. Chicago 3.45 hrs. San Jose 3.40 hrs. Dallas 2.10 hrs. Ontario, Ca. 3:00 hrs. Houston 2:00 hrs. Seattle 5:00 hrs. (via L.A. or San Francisco) Los Angeles 3.15 hrs. Portland, Or. 5:00 hrs. Las Vegas 3:20 hrs.
Jalisco leadership industries Electronics Telecommunication Equipment Chocolate and Candies Footwear production in general Ladies Footwear Jewellery Agave / Tequila Poultry Milk “Ever Green” Grass Pork Sugar Cane White Corn Agricultural GNP Contribution Tourism (beach destination) Eggs production Beef
EXPORT MARKETS USA Canada China Switzerland Singapore Germany United Kingdom Venezuela Uruguay The Netherlands Guatemala IMPORT MARKETS USA Taiwan China Singapore Germany Japan Canada Switzerland Malaysia Hong-Kong Jailsco: main countries partners JALISCO exports to more than 35 countries
Export products to US Source: Seijal. Million USD Dollars.
Portland Week in Guadalajara • PWG will include: • Trade Mission • Cultural activities • Promote Tourism both ways • Gastronomic activities • Government liaison Framework: Portland-Guadalajara Sister city Association
Trade mission companies • Export • Import • Invest in Mexico • Joint-venture • Strategic alliance • Maquiladora
Trade Mission • Meeting with government official • Match-making meeting with suitable partners • Visit to plants, locations, industrial parks, etc.
Export companies US Export Assistance US Consulate in Guadalajara Oregon Economic Development Department Import & investment companies Mexican Consulate Trade Commission Foreign Trade Bank of Mexico Trade mission General Coordinator: Portland Hispanic Metropolitan Chamber / Mexican Consulate
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