Gateway to America (Continent)

Gateway to America

MexicoFrom macro to micro

Industrial redistribution

US ImportsMarket Share

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

Jan-A

ug 2010

0%

5%

10%

15%

20%

25%

Canada China Germany Japan Mexico

Source: USDOC

*/ Over the same moth last yearSource: INEGI

Annual Growth*

Mexico’s Export Performance

j f m a m j j a s o n d j f m a m j j a s o n d e f m a m j j a s2008 2009 2010

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Total exports Manufacturing

Source: USDOC

US Non-petrol Imports

Exports as a Growth Driver

Market share(January-August 2010)

China Mexico Canada Japan Germany

22.87%

12.73% 12.68%

7.63%

5.29%

Trade and legal frameworks

• The world´s largest free trade agreements network (12 FTAs).

• Preferential Tariff Access to 44 countries.

• Automotive business opportunities in three continents (America, Europe, Asia).

• Competitive advantages in: High qualified labor force, logistics, low country risk,

economic stability, business environment.

FTA EU

FTA Chile

FTANicaragua

FTACosta Rica

FTA Bolivia

FTAColombia

NAFTAFTA Japan

FTAHonduras

El Salvador & Guatemala

FTA Israel

MERCOSUR:- Brazil- Argentina- Uruguay- Paraguay

NAFTA

The Mexican economy has a GDP of almost 1 trillion dollars, with a population of 112 million. The country’s GDP is expected to

reach 1.4 trillion dollars in 2015 (IMF).

Country risk

Source: The Economist Intelligence Unit; latest data available

Banking sector

0

1

2

3

4

0

2

4

6

8

10

12

14

2001 2002 2003 2004 2005 2006 2007 2008

Int. Reserves / Current Account Deficit minus FDI

Int. Reserves / Net External Debt

14.1 13.6

9.56.4 5.5

0

5

10

15

Mexico Russia Brazil India China

Bank capital to assets(%)

2.1 2.4 2.8 2.9

5.5

0

2

4

6

Mexico Russia India Brazil China

Non-performing loans (% of portfolio)

Sources: Countries' Central Banks and National Statistics Offices, JP Morgan and Global Competitiveness Report 2009

Manufacturing cost comparison

Source: United States Department of Labor (International Labor Comparisons, 2007) and International Labour Organization (salary history in dollars).Note: Estimates for labor costs per hour for 2008 use 2008 growth rate for labor unit cost (source Global Insight) and the exchange rate at year end.

Manufacturing costs: Mexico has a business cost advantage of 18.2%

average (of 17 industries) relative to the US (Source: Alix Partners 2009).

Ease of doing business

Source: Doing Business 2011 – World Bank Group

Among Latin American Countries, Mexico has the highest ease of doing business

(World Bank, Doing Business 2011).

Country Rank - 2011 Rank - 2010 No. Reforms Change Singapore 1 1 0 0 Hong Kong, China 2 2 2 0 New Zealand 3 3 1 0 United Kindgdom 4 4 2 0 USA 5 5 0 0 Denmark 6 6 2 0 Canada 7 9 2 +2 Norway 8 7 0 -1 Ireland 9 8 0 -1 Australia 10 10 0 0 México 35 41 2 +6 China 79 78 1 -1 Russia 123 116 2 -7 Brazil 127 124 1 -3 India 134 135 2 1

Source: National Population Council.

Mexico is a source of talent that is very attractive for businesses in various sectors. Every year, close to 90,000

students graduate from engineering and technology programs (Source: ANUIES).

• Geopolitical position … access to > 60% of World GDP

• Macroeconomic stability

• Open economy

• Healthy banking sector

• Competitive workforce

• Business friendly

• Young and prepared people“Gateway to America”

Mexico situation

Is this real?Some examples…

Perception is reality…

Proof: what Volkswagen is doing

Source: Volkswagen de México

Natural hedging

Natural Hedging

Buy and manufacturein the “dollar-zone”

to sellin the “dollar-zone”

About ProMéxicoA snapshot

Soft Landing

Ombudsman

One stop shop

Investor-Aftercare

Advise and information

What is ProMéxico?

Public and private sectors

ProMéxico coordinates

What is ProMéxico?

Mexico’s investment map

http://mim.promexico.gob.mx/

Vielen Dank!!!

Erwin Feldhaus

[email protected]