Mexico…who would have thought it? Mexico Economy & Opportunities Explore to Export June 2011 Ivan Ramirez / Jonathan Clare Senior Trade & Investment Officer.

Mexico…who would have thought it?

Mexico Economy & Opportunities

Explore to ExportJune 2011

Ivan Ramirez / Jonathan Clare

Senior Trade & Investment OfficerBritish Embassy Mexico

+52 33 3630-4357

[email protected] / [email protected]

•1 out of every 8 cars sold in the US is made in Mexico

•The richest man in the world is Mexican

•Most televisions and PCs sold in the US last year were made in Mexico

•Mexico is the world’s 7th largest oil producer

•Mexico is the principal global destination for aerospace manufacturing projects

•Mexico is the largest producer of smartphones worldwide, and the 2nd largest exporter of televisions

Who would have thought it?

So let’s have a look at why….

Because Mexico is a huge, diverse country with immense potential

· Its dynamic economy is set to be one of the world’s top 7 by 2050

· Largest network of FTAs in the world including NAFTA, EU and Japan

· Largest trading nation in Latin America: Mexico trades about as much as Brazil,

Argentina, Venezuela and Chile combined

· Only Latin American country in OECD

Because it is very different from what you may have thought

Mexico 2011

Because of its economic strength

· The World in 2050 (GDP US$bn)

Mexic

o

Because of its economic strength

· Stable economic growth over the last 20

years

Because of its economic strength

· IMF GDP Growth Predictions

Because of its potential

· Mexico’s imports

Because of its potential

· Mexico’s exports

Because of its strategic geographical advantages· Key geo-strategic position

· To the north, 53 border crossings to the USA -

excellent access to North America

· To the south, Mexico borders on Central and South America - emerging markets with which it maintains growing trade links

· The same size as Western Europe!

Because of its strong and growing infrastructure

· 59 international and 26 domestic airports· New airports in Riviera Maya (planned) and Puerto Peñasco (opened 2009), expansion of others

· 16 commercial ports on Pacific and Atlantic coasts with

easy and quick access to the USA

· Strong and improving road and rail network

Because of its strong and growing infrastructureNational Infrastructure Plan worth US $226 bn launched in

2007

Major investments in:

· Oil and gas

· Water and sanitation projects

· New suburban train lines - Mexico City, Monterrey and

Guadalajara

· Huge road-building and road improvement programmes

· Expansion of ports in Manzanillo, Lazaro Cardenas,

Veracruz

All aimed at improving Mexico's competitiveness, and

turning Mexico into one of the main logistics hubs in the

world

Because of its natural resources

· Large oil and gas reserves

· 2nd largest producer of silver in the world

· Significant reserves and production of gold and copper

· One of the most bio-diverse countries in the world - home to 10% of all species on the planet

· Huge and growing agricultural capacity

· One of the worlds largest producers of – and the largest global exporter of - avocado, watermelon and papaya

Because of its people· Population of 112 million – average age 27, 50% of population under 27

· 3m students - over 250,000 are doing 2nd degrees

· Over 2000 higher educational institutions

· 3 times more students graduate from engineering and technology programmes than the UK

· Some 1m more people become economically active each year

· 88 million workers by 2040

Because of its people· Increasing income per capita

· Growing middle class

· English widely spoken (but Spanish is the 3rd most spoken native language in the world)

· Skilled and competitive professionals – productivity and quality levels rival those of the US & other Western economies

· Competitive costs levels and good labour relations in the private sector

Because of its favourable business environment

·Bilateral Investment Treaties signed with 27 countries, among them the UK

·Competitive manufacturing, labour and transport costs

·Doing business in Mexico is 18.2% cheaper than in the US

·Number one low cost source of manufacturing goods for the US market

·35th in the World Bank Ease of Doing Business rankings

Because of its wide range of key opportunity sectors

·Aerospace - 2nd largest business aircraft fleet in the world

·Automotive industry - One of the top 10 manufacturers of motor vehicles in the world

·Financial services - Economic stability and a strong legal framework provide security and protection for investment

·Oil and Gas - Mexico one of the 7 largest oil producers in the world.

Because of its wide range of key opportunity sectors

· Retail - Mexico represents 55% of the Latin America luxury goods market

· Environment - Zero tariff on import of equipment that prevents pollution and promotes R&D

· Information Technology (IT) – Forecast to be 2nd in world IT destinations by 2013

· Electric and electronic - Exports over 90m mobile phones each year; a global supplier of other electronic and white goods

Business Culture in Mexico

The 4 “Ps”

· People

· Presence

· Patience

· Perseverance

UKTI in Mexico

·32 professional advisors - organised in

sector teams

· Main office located in the British Embassy in

Mexico City, and 3 regional commercial

offices: Guadalajara, Monterrey and

Tijuana

· Directly supported over 1000 companies

during FY 2009/10 and 2010/2011

UKTI Services in Mexico

· Consultancy services, strategic

advice

· Programme Arrangement

· Market Research and Briefings

· Access to key public and private

sector players and introductory

meetings

· Trade Missions

· Event organisation at the

Embassy, Residence or elsewhere

· Press & marketing services

· Sector reports

· Lobbying

· Inward investment services

How and why can we help?

· We cover all major sectors of the economy where we see

opportunities for UK companies

· We understand the local business culture

· Being part of the British Government, we can open doors

that would otherwise stay closed

· We have excellent contacts in government & industry

· We work with other sections of the Embassy

Thank you!

Thank you for your time and attention

Come back to Mexico soon! There are business opportunities in

every sector

Ivan Ramirez / Jonathan Clare

Senior Trade and Investment Officer / British Consul Monterrey

+52 33 36304357 / +52 81 8356 5359

[email protected]

[email protected]

http://ukinmexico.fco.gov.uk

www.uktradeinvest.gov.uk