Doing Business in MEUFTA Gerardo Prado September 2013.

Doing Business in MEUFTA

Gerardo Prado

September 2013

MEUFTA

The Mexico- European Union Free Trade Agreement (MEUFTA), which entered into force on July 1st, 2001, focuses on the trade of goods and services. The main goal of the treaty is to intensify trade and investment among the contracting parties.

MEUFTA fosters the confidence required to make long-term investments and partnering commitments by investors of both parties. With the implementation of the MEUFTA Mexico secures access for its industrialized products and other goods into the EU market, while the EU re-establishes the competitiveness of the EU exports to Mexico, securing access to Mexican market under the same benefits enjoyed by NAFTA originating products.

The MEUFTA consolidates Mexico’s privileged position as a strategic global trade hub and as a magnet for investment in the 21st century, fuelling Mexico’s continued drive towards sustained growth and prosperity.

The MEUFTA is likely to diversify Mexican trade and investment relations, which are currently dominated by the U.S. The preferential treatment granted to European firms will place them in an improved position to compete in the Mexican market and make them invest more in Mexico as an export platform to many regions. It is therefore foreseeable for the EU to play a more important role in Mexico.

Mexico – European Union Free Trade Agreement

MEUFTA

EU and Mexico Trade Picture

•EU is Mexico's second biggest export market and Mexico's third largest source of imports.

•The EU's key imports from Mexico are mineral products, machinery and electric equipment, transport equipment and optic photo precision instruments.

•Key EU exports to Mexico include machinery and electric equipment, transport equipment, chemical products, and mineral products.

•In terms of services EU imports from Mexico are dominated by travel, sea transport, air transport and construction services. EU services exports to Mexico consist mainly of travel, sea transport, air transport and computer and information services.

*Source: European Commission

MEUFTA

Commercial information Mexico – UE

*Source: Mexico´s Central Bank and the Ministry of Economy**2008 latest data available

Figure 3: Goods trade between the EU-27 and Mexico, 2000–2010 (million EUR)

25 000

20 000

EU-27 im ports from M e xico

EU-27 exports to M e xico

15 000

10 000

5 000

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

14000

12000

10000

8000

6000

4000

2000

0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*

MEUFTA

Commercial information Mexico – Germany

*Source: Mexico´s Central Bank and the Ministry of Economy**2009 latest data available

MEUFTA

German Foreign Direct Investment

• 1,300 Companies with German Capital (2012 latest data available)

• Approximately 25 billion dollars accumulated capital in Mexico.

• Represents about 7% of our industrial GDP.

• Mexico´s leading trading partner amoung the EU countries.

• Ranked 4th among the EU investors countries in Mexico (after Spain, Netherlands and United Kingdom).

• Ranked 7th of the Mexico´s main global investors.

• 120,000 jobs created in Mexico by their companies.

*Source: German Embassy and CAMEXA

MEUFTA

Leading German Companies with FDI in Mexico

AerospaceAutomotiveChemicalDomestic appliancesInformation TechnologiesLogisticsMedical devicesMetal-mechanic PharmaceuticalRenewable energies

Strategic Investment Sectors in Mexico

Gerardo [email protected]