Trade Commission of Mexico for Western Canada and the Pacific Northwest of USA

1
Trade Commission of Mexico for Western Canada and
the Pacific Northwest of USA

• JALISCO
• Business opportunities
• Portland Hispanic Metropolitan Chamber
• July 26, 2006

2
M E X I C O NAFTAA decade of strengthening
3
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

4
Mexico A large complex market
5
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.

6
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
1995
1994
1993
1992
1986
1998
2000
2001
2005
7
Mexico in the world

• 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

8
Mexico in the world

• 8th export 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 pay wages 37 higher than
  non-export

9
States with highest foreign trade flows
Chihuahua

• Baja California

Coahuila
Nuevo León
Veracruz
Guanajuato
Jalisco
Puebla
Estado de Mexico
Mexico City
10
Mexico as manufacturing centre
NAFTA REGION
Finished Products Parts and Components
ASIA
EUROPE
Parts and Components
Parts and Components
Finished Products
CENTRAL SOUTH AMERICA
11
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)

12
JALISCOMain industries markets
13
Jalisco
It is the financial and commercial centre of the
Mexican West coast
14

Economic indicators
Mexico Jalisco
Population (2004) 106 million 6.6 million 6.22
Area (km2) 1,967,00 80,137 4.07
Labour Force (2004) 42.3 million 2.8 million 6.62
Per Capita Income 6,000 USD 5,962 USD 6.50
GNP 603 billion USD 39.20 billion USD 100.3
Exports (2004) 173.2 billion 13.6 billion USD 7.85
Imports (2004) 178.9 billion USD 17.2 billion USD 9.61
Capital Mexico City Guadalajara
15
Highlights

• 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

16
Strategic Location
Distances from Guadalajara to... Km
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
17
Infrastructure

• Railroads
• 1,108 Km

• Roads
• Toll ways 566 Km
• Toll free 5,314 Km

• Communications
• Telephone lines 1,060,000
• Population with services 862,000

FIBER OPTICS 100

• Rail port
• Inter modal terminal
• Automotive distribution center
• Train to Truck unloading place

Average Temp 54 Fº
18
Flight times to main U.SA. cities
Portland
New York 4.15 hrs.
Atlanta 310 hrs.
San Francisco 3.50 hrs.
Chicago 3.45 hrs.
San Jose 3.40 hrs.
Dallas 2.10 hrs.
Ontario, Ca. 300 hrs.
Houston 200 hrs.
Seattle 500 hrs. (via L.A. or San Francisco)
Los Angeles 3.15 hrs.
Portland, Or. 500 hrs.
Las Vegas 320 hrs.
19
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
20
Jailsco main countries partners

• 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

JALISCO exports to more than 35 countries
21
Export products to US
Electronic products 70.61
Food and beverage 5.65
Transportation materials 5.33
Metal-mechanic 3.74
Building materials 2.99
Health products 2.31
Textiles and garments 2.09
Subtotal 92.72
Total 100.0
Source Seijal. Million USD Dollars.
22
PGSCATrade mission
23
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

24
Trade mission companies

• Export
• Import
• Invest in Mexico
• Joint-venture
• Strategic alliance
• Maquiladora

25
Trade Mission

• Meeting with government official
• Match-making meeting with suitable partners
• Visit to plants, locations, industrial parks,
  etc.

26
Trade mission
General Coordinator Portland Hispanic
Metropolitan Chamber / Mexican Consulate

• 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

27
Please contact us at

• CANADA
• Vancouver, Canadá
• 200 Granville Street, suite 1365
• Vancouver, Canadá
• V6C 1S4
• Tel. [phone]
• Fax. [phone]
• E-mail bancomext_at_trademexbc.com

• EEUU
• Portland Oregon
• 1234 SW Morrison Street
• Portland Oregon 97205
• Tel. [phone]
• Fax. [phone]
• E-mail vperez_at_sre.gob.mx