format for report december 2017 - federation of indian ... · standalone auto parts expo, mexico...
Post on 08-Oct-2020
1 Views
Preview:
TRANSCRIPT
Commercial Report
Embassy of India Mexico City
Ambassador visited Indian garments importers and vendors - Mixcalco market
// With Annual Summary 2017 //
1
CONTENTS
SLNO
SUBJECT PAGENO
1 AnnualSummary 2
2 TheEconomy 4
3 Trade,InvestmentandInfrastructure 5
4 Agriculture 6
5 TheEnergySector 7
6 TheAutomotiveSector 8
7 BilateralEventsandNews-Mexicoandothercountries 9
8 MultilateralEventsandNewsinvolvingMexico 10
9 CommercialNewsfromBelize 11
10 Appendix–Statistics(Belize´sperspective)iBilateralTrade(Belize-India)inJanuary-November2017comparedtoJanuary-November2016(FiguresinThousandUSD)ii.BelizeImportStatisticsfromIndiaiii.BelizeExportStatisticstoIndia
11
11 Appendix–Statistics(Mexico´sperspective)i.BilateralTradeinJanuary–October2017comparedtoJanuary-October2016(FiguresinMillionUSD)ii.MexicoImportStatisticsfromIndiaiii.MexicoExportStatisticstoIndiaiv.MexicoImportstatisticsfromtheworld(product-wise)v.MexicoExportstatisticstotheworld(product-wise)vi.MexicoExportstatisticstotheworld(Country-Wise)vii.MexicoImportstatisticsfromtheworld(Country-Wise)viii.MexicoTotaltradewiththeworld(Country-wise)
13
ANNUALSUMMARY
For Mexico, the year 2017 started with
continued high devaluation of national
currencyandgeneralproteststriggeredby
the high rates of gasoline. After the
swearing in of Mr. Donald Trump as the
newPresidentofUSA,theNorthAmerican
FreeTradeAgreement(NAFTA)underwent
renegotiation. Conclusions have been
drawn that this would hamper the
attractiveness of Mexico. The negotiation
continuesastheyearcomestoaclose.The
Mexicanpesoreturnedtoastablevalueof
18-19 by May 2017. Another highlight of
theyearwasthatthiswastheelectionyear
for the federal government. Elections aredueonJuly2018.
It is in this context that thedevelopments
in India-Mexico trade and investment
relations should be seen. In total, the
Embassy organized or participated in 34eventsofvariousnatures.
Trade
AsperthedatareceivedbytheEmbassy,in
thefirst3quartersof2017(Jan-Sept),India
has become one of the top ten trading
partner of Mexico. In the 9 months, the
trade grew at a rate of 29 percent
compared to the same period in previous
year.Thetotaltradeinthisperiodisworth
5.7 billion USD, with exports 3.74 billion
USD(16%growth)andimports1.98billion
USD (63% growth). This is the first time
India has become one of the top ten
tradingpartnersofMexico.Inpast2years,
we have replaced Taiwan and Italy. Theprojectedtotaltradeatthisrateofgrowth
wouldbe7.6billionUSDfor2017. In2016
we had a trade of 6.32 billion USD. From
Indianthemajoritemsthatpickeduppace
inexportstoMexicoareceramicproducts,
iron and steel, and dry fruits. From
Mexican side, major items that picked up
pace in exports to India in this year are
cooperand itsproducts,coffee,aluminum
and articles, photographic goods, etc..
FromMexicanside,themajorproductstill
iscrudeoil,theexportforwhichincreased
by63%invalue inthe3quarters. It forms
72%ofthetradebasket,whichislessthan75%shareithadin2016(fullyear).
Several of the issues were also discussed
during the meeting of Sub-committee on
Trade and Economic matters and sub-
committee on Energy as part of the Joint
Commission Meeting (JCM) which tookplaceinJune,2017.
On an average, the Commercial wing
received 45-50 trade queries in every
month, with about 95% from Indian side.
Mostof thequeries receivedwere related
to Ceramics, pharmaceutical and plasticssector.
Exposanddelegations
Intotal,Mexicoreceived9delegationfrom
India with over 200 companies andmany
more visited alone. The delegations
includedSRTEPCdelegationforInterModa,
Guadalajara; AEPC delegation; Morbi
Ceramics Association for Expo Habitat,
Mexico City; NASSCOM delegation for
DigitalEconomicShow,Guadalajara;ECPES
and TPCI delegations for Expo Ferreterra,
Guadalajara;CIIdelegationforExpoCIHAC,
2
Mexico City; ACMA delegation for
standalone Auto parts expo, Mexico City,
Plexconcil delegation for Plastimagen,
Mexico City. Besides, the Embassy had
setupitsownstallinANIERMInternational
Expo, Encuentro Internacional de Energia
Mexico and Annual Reunion of IndustriesbyCONCAMIN,Monterrey.
Investments
In 2017, Mexico saw several investments
from India.Mahindra&Mahindramadea
10 million USD investment to setup their
tractors assembly plant in Aguascalientes.
SparkMINDAgroupmadeaninvestmentof
about20millionUSDinQueretarotosetup
auto parts manufacturing plant.
Samvardhan Motherson group opened a
new plant in Tlaxcala, which is also their
biggest so far worldwide. They are
employing upto 1000 people in the plant.
TVS motors has started supplying 3-
wheelers to Nuevo Leon as a solution to
their traffic problem. There are severalmoreinvestmentsinpipeline.
From Mexico, the biggest investment this
yearwasbyGrupoBimbo.Theyacquireda
major stake in Ready Roti company, the
brand holder of Harvest Gold. Cinepolis is
continuing expanding and has made a
target of opening 400 screens before the
end of 2017. The flow of investment has
generallybeenmore from India toMexicothanthesameinoppositedirection.
In total, it is estimated that we have an
investmentof2billionUSD inMexicoand
Mexicohasaninvestmentof1billionUSD.
The investment figures are being refined
further by PWC for their publication on
How to do Business in Mexico for Indiancompanies.
TheAmbassadorof IndiavisitedtheIndian
factories aswell. He visitedMSSL plant in
Chihuahua and SMPplant in Puebla (both
from SamvardhanaMotherson group). He
visited the state of art facility of Dr.
Reddy’s Laboratories in Morelos, RSB
Transmission factory in Silao, Guanajuato.
He also inaugurated the MINDA Spark
factory in Queretaro along with the
Governor.Atthecloseoftheyear,around
of various garment shopswere also taken
in Mixcalco, Centro Historico in Mexico
City. The HCL Technologies’ Guadalajara
installationwasalsovisitedwithNASSCOMdelegation.
Eventsorganized.
Because of the NAFTA renegotiation, the
majorthemerunningacrossthetradeand
investment related events was
diversification.Mexicohasfelttheneedfor
diversifying its trade partners now, morethanever.
The year began with CII-India Business
Forum, Mexico City and Make in India
conference inMonterrey inMarch. With
PWC, the Embassy organized a breakfast
meetinginjuneandasessionwithpartners
of PWC inOctober. ProMexico invited the
Embassy to their capacitation program to
talk with many traders, both offline andonlineinJuly.
Thebiggestconferenceswereorganizedby
3
the Embassy in collaboration with the
biggest chambers of Mexico. With
Confederation of National Chamber of
Commerce, CONCANACO, it organized a
conference addressing most of the
Presidents of the regional chambers of
commerce.InvestIndiaalsoparticipatedin
the conference. With CONCAMIN Bajio, it
organized a conference in Leon,
Guanajuato with support of the
Government of Guanajuato. With COMCE
Sur, itorganizedabreakfastconference in
Puebla. India was the guest country in
Symposium on Transport and Logistics,
organized by LESCHACO. The conferencessawgreatinterestfromtheMexicanside.
Several of the big conferences were also
attended. The Ambassador attended the
MexicoBusinessSummitinSanLuisPotosi.
The Commercial Representative attended
the Annual Reunion of CONCAMIN in
Monterrey and Congress of COMCE inOaxaca.
Conclusion
The engagements between India and
Mexico in commercial sphere are
increasing rapidly since the visit of Prime
Minister in June 2016. There is growing
interest towards India in the Mexican
businessmen’s mind as can be assessed
fromthewidecoverageofIndianactivitiesinnationalandlocalnewspapersaswell.
4
THEECONOMY
Centralbankauctionfailstosupportpeso
The Bank of México (Banxico) auctioned off an
unscheduledUS$500millioninforeignexchange
hedges,ameasuredesignedtoeasepressureon
thepeso.Butitonlyprovidedbriefrespitebefore
the currency slumped again to end the day at
$20.15 pesos per dollar. The central bank took
the decision on the advice of the Foreign
Exchange Commission, a body made up of
officials fromtheFinanceSecretariat (SHCP)and
Banxico that is responsible for foreign exchange
policyinMexico.ThecentralbankplacedUS$250
million in a 30-day forward contract and the
other US $250 million in a 57-day forward
contract.Themeasureallowsthecentralbankto
supporttheexchangemarketwithouteatinginto
Mexico’s international reserves, currently valued
at around US $172.5 billion. The peso faces an
“adverseenvironment” in2018duetoU.S.fiscal
reform, NAFTA renegotiations and the Mexican
presidential election. The SHCP and Banxicowill
continuetocloselymonitortheforeignexchange
market and some analysts believe that theywill
continue to intervene in the same way ifrequired.
Aguascalientesleadsineconomicgrowth
In its State GDP Growth 2017-2018 report, the
financialgroupsaidAguascalientesledwith6.1%
annual average growth in the six-year period
starting2010.Automotivemanufacturingwasthe
main forcebehind thestronggrowth.Querétaro
followed with a 5.1% growth rate, while
nationwide the figure was 2.9%. Querétaro’s
industrialsector(backedbyaconstructionboom
and a strongmanufacturing industry focused on
the exportmarket) grew by 11.8% and was the
single largest impetus for the surge. The
construction industry grewby28.5%mainlydue
to the completion of public works while
manufacturingincreasedby6%,drivenbyactivity
intheaeronautical,foodandchemicalindustries.
Aguascalientes isexpectedtogrowby5.6%next
year and Querétaro by 4.9%. Quintana Roo is
projected to be the third best performing state
economy in 2018with 4.5% growth followed by
Guanajuato with 4.3% and San Luis Potosí with
4.2%.Thetopfiveperformingeconomiesof2017
byyear’sendareprojectedtobeBajaCalifornia
Sur (8.4% projected growth), Puebla (6.7%),
Querétaro(5.4%),Aguascalientes (5.2%)andSanLuisPotosí(4.9%)
Banxicoseesadverseenvironmentforthepeso
The new governor of the Banco de Mèxico,
acknowledged that there is an adverse
environment for the Mexican currency in 2018,
mainly due to three factors: NAFTA, US tax
reform and presidential elections. Despite the
toolsusedbytheforeignexchangeauthoritiesin
Mexico,theexchangerateofthepesoagainstthe
dollar continues to rise and now peaked sinceMarch9ofthisyear.
Mexico breaks record in attracting ForeignDirectInvestment
In the period January-October, the region
remained in linewithwhatwas recordedduring
thefirstninemonthsoftheyear.SanLuisPotosí
registered the greatest dynamism in the area.
The investment registered from January to
September reached an amount of $163 billion
dollars,accordingtoProMéxico. Inexports,from
JanuarytoOctober,Mexicoregisteredmorethan
$336thousanddollarsinthesector.Mexicoisthe
seventeenth country in terms of attracting FDI
globally. In exports, from January to October,
Mexicoregisteredmorethan$336billiondollars
5
in exports. Some export products highlighted
were automobiles (more 2.8 million units
exported in 2017), avocado (Mexico is themain
producerandexporterworldwide);beer(Mexico
is the fourth producer and the main exporter
worldwide); and strawberries (1 of every 10strawberriessoldintheworldisMexican).
TRADE,INVESTMENT&INFRASTRUCTURE
NewfoodstoresinPuebla,NuevoVallarta
Upscale food retailer La Comer, has opened its
latest new stores in the cities of Puebla and
Nuevo Vallarta. The company’s marketing
directorsaidsaleswereup12.7%inthefirstnine
monthsoftheyearcomparedtothesameperiod
in2016.Thefirm’sstrategyhadbeenfocusingon
higher-income consumers and targeting them
with their upscale City Market brand. Having
achievedgoodresults,ithasbeguntoexpandits
presencebeyondMexicoCity.Theneweststores
represented an investment of 612million pesos
(US$32million),151millionofwhichwereused
to build the 4,248-square-meter Puebla store. It
will be able to sell over 29,000 national and
imported products in that store. The store will
create270directand52indirectjobs.The4,992-
square-meter Nuevo Vallarta City Market is
located in Bahía de Banderas, Nayarit, required
an investment of 461 million pesos. It willgenerate170directand260indirectjobs.
$700bnpesosforecastforinvestmentinSEZs
Five special economic zones (SEZs) will attract
investment of 700 billion pesos (US $36 billion)
over the next 10 to 15 years, President Enrique
Peña Nieto predicted. The president signed
decrees for the creation of the zones in Puerto
Chiapas, Chiapas; Lázaro Cárdenas, Michoacán;
and Coatzacoalcos, Veracruz, in September and
with the additional designation of Progreso,
Yucatán,thetotalnumberofSEZsdecreedduring
this administration is now five. A further two
zonescouldeventuallybeaddedtothelist.Peña
Nieto said that investmentworthUS$6.2billion
had already been committed to projects in the
fivezones.InaccordancewiththefederalSpecial
Economic Zone Law, the areas will receive a
seriesoftaxandlaborincentivesandhavebotha
differentiated customs system and a flexible
regulatory framework.While conceding that the
creationof the zones isnotapanacea, theywill
boost economic development in the south and
southeast of the country, a region that includes
Mexico’s poorest and most underdeveloped
states.TheSalinaCruzSEZwillbegearedtowards
the traditional manufacturing industry whereas
Progresowill aim to attract new and innovativecompaniesthatusemoreadvanced.
US$1bnsteelmillannouncedforNL
Italian-Argentine conglomerate Techint Group
willinvestUS$1billiontosetupanewsteelmill
in Monterrey, Nuevo León. The hot rolling mill
will be developed as part of an expansion of
Techint’s industrial center in themunicipality of
Pesquería. Expected to be operational in the
secondhalf of 2020, the newplantwill have an
annualproductioncapacityof3.7million tonnes
of steel and manufactured products to meet
demandintheautomotiveindustryaswellasthe
home appliance, machinery, energy and
constructionsectors. InMexico,Techinthasnine
industrial plants and two mining operations as
well as five service centers and 11 distribution
centers. Lastyear itproduced3.5million tonnes
of steel inMexico,accounting for18.7%of total
national production. According to the National
Chamber of the Iron and Steel Industry
(Canacero),Mexicowas theworld’s 13th largest
steelproducerin2016withatotaloutputof18.8
million tonnes. However, the amount was not
6
enough to meet domestic demand. Mexico
exported4.5milliontonnesofsteellastyearbut
imported13.9milliontonnes.Thedomesticsteel
industry contributes to 1.9% of Mexico’s total
grossdomesticproduct (GDP),6.2%of industrialGDPand10.6%ofmanufacturingGDP.
Legalhurdlesareover,carterminaltoopen
Mexico’s first marine terminal specializing in
shipping vehicleswill beginoperatingduring the
first quarter of next year in Lázaro Cárdenas,
Michoacán.Covering43hectaresandboastinga
wharf 530 meters long, the roll-on, roll-off TEA
(specializedautomotiveterminal)hascostUS$50
milliontobuild.Onceitisfullyoperational,halfa
million vehicles are expected to be shipped
through iteveryyear. Intendedforboth imports
and exports, the terminal has capacity for
450,000 vehicles and room to expand to handle
760,000.Havingaterminaldedicatedonlytothe
handling of vehicles will cut down on damage
that has resulted from sharing terminal space
with general cargo, which is often corrosive in
nature.
Newrailwaycompetitionforcanal
Construction of an interoceanic railway line
linking the Pacific and Gulf coasts of southern
Mexico will begin in January. Work on the first
phase of the 310-kilometer double-track line
between the ports of Salina Cruz, Oaxaca, and
Coatzacoalcos, Veracruz,will represent the start
of a free trade agreement for the southeast of
Mexico.Theprojecttolinkthetwooceanswould
placeMexicoinapositionwhereitcancompete
with thePanamaCanal.Mexico’s largest railway
operator, Ferromex, won the tendering process
to operate the new line. Other projects to
complement the railway will include increasing
thecapacityoftheSalinaCruzport,buildinga$1-
billion-peso agricultural park, modernizing the
CiudadIxtepecairportandcompletingtheMitla-
Tehuantepechighway.Itwasfirstannounceda3-
billion-peso investment package for the projects
inMarch,including700millionpesosforadirect
highwaybetweenSalinaCruzandCoatzacoalcos.
JapanesemultinationalMitsubishihascommitted
US$1.2billion for the creationofwind farms inthearea.
PrettlventuresintoMexicanaerospacesector
The German Prettl Electronics ventures in the
aerospace sector in mexico through a line of
harness production, in the plant installed in
Corregidora, Queretaro, development that
involvedaninitialinvestmentof$300,000dollars
and the generation of 10 specialized jobs. The
projectplansaninvestmentof2.5milliondollars
in three years and 25 jobs in total. The linewill
haveavolumecapacityproductionof1.4million
harnessesperyear,which impliesbusiness for$8.3milliondollarsayear.
AGRICULTURE
Sugar production will rebound in 2017 – 2018cycle
TheproductionofsugarinMexico,scheduledfor
the sugar cycle 2017 - 2018,will reach6million
182,000 tons, said Carlos Blackaller Ayala,
president of the National Union of Sugarcane
(CNPR). To achieve the mentioned production,
about 55million 633,000 tons of sugarcanewill
be milled, which will be harvested in 802,000
hectares, located in 227 municipalities of 15statesofthecountry.
DamagetoricemillhurtsMorelosgrowers
The rice industry isoneof themostemblematic
of the small state of Morelos but it too was a
victimofthepowerfulSeptember19earthquake
thatdevastatedpartsofcentralMexico.TheSan
7
José rice mill, the only one of its kind in the
municipalityofJojutla,wasbadlydamagedinthe
7.1-magnitude quake. As a result, about 300
producerswhoprocesstheirgrainatthemillare
indangeroflosingtheirlivelihoods.TheMorelos
government has made an offer to buy new
machineryandfundtheconversionofanoldmill
into a rice museum to generate extra revenue.
Thequake struckat thebeginningof theannual
harvest, just when growers were reaping their
crops in preparation to enter the European
market. Morelos stands out for being the mainproducerofriceinMexicobyhectare.
Coldweatherdestroys70%ofnopalcrop
Morethan70%ofnopalproductioninMilpaAlta
was lost due to single-digit temperatures and
overnight freezes. The bulk of the edible cactus
padsthataresoldinMexicoCityaregrownthere.
BetweenDecember13and22,Sederecstaffand
insurance company representatives carried out
inspectionstoassessdamageacrossalmost2,000
plotsof land in theborough.Affectedproducers
are not convinced that the compensation will
make up for their loss. Due to a shortage in
Mexico Citymarkets, the price of a single nopal
paddle has shot up from $1 to $2.50 pesos but
theMilpaAlta farmers,with littleornoproducttosell,arenotbenefitingfromthepricehike.
AnFTAwithSouthKoreawillopenmarkettotheagri-foodsector
A free trade agreementwith South Korea could
increase the agri-food exports from Mexico to
that country, which currently stands at $95
million dollars. SAGARPA sees opportunity for
corn and pork.Mexico pays 40%of the tariff to
enter frozen and refrigerated beef into the
Korean market, and pork is under the same
conditions(representstheagri-foodproductwith
the most exports in 2016). In 2016, the Asian
countrybought$26thousand800milliondollars
offoodfromitsmaintradingpartners.Inthecase
of Mexico, that country bought $64.5 million
dollarsofanimalproductsand$8.85millionplant
products.Othermarketopportunitiesareshrimp,
canesugar,beets,bananas,coffee,beer,tequila,avocadosandberries.
THEENERGYSECTOR
BPontracktohave500stationsnextyear
TheBritishmultinationaloilandgascompanyBP
openedits100thgasstationinMexicowiththree
new outlets in Monterrey, Nuevo León, and
reaffirmed its intention to have 500 stations
operating by the end of 2018. BP was the first
international oil company to enter Mexico’s
deregulated retail fuel retailmarket, opening its
first station nine months ago. The general
manager of BP Downstream for Mexico, Álvaro
GranadaSanz,estimatedthat250,000consumers
are nowusing BP products every day. The long-
termtargetof theBritishoilcompany is tohave
1,500 gas stations by 2021. Duncan John
Rushworth Taylor, the British ambassador to
Mexico, congratulated the company for the
milestonereached,addingthattheeventshoweditslong-termcommitmenttoMexico.
8newMobilstationsopeninBajíoregion
Eightgasstationsinthewest-centralBajíoregion
are the first in Mexico to sell fuel that doesn’t
come from the state oil company, Pemex. The
newly-openedMobil stationsaresellinggasoline
anddieselrefinedanddistributedbyTexas-based
oil and gas corporation ExxonMobil, theworld’s
largest. The company intends to open 50 more
stations in theBajío,which includespartsof the
statesofAguascalientes, Jalisco,Guanajuatoand
Querétaro,duringthefirstquarterof2018.Inthe
long term, ExxonMobil plans to invest US $300
8
million in logistics, inventory and the sale of its
fuels over the next 10 years. ExxonMobil
transports its own gasolines and diesel from a
TexasrefinerytoitsBajíostorageanddistribution
facilities through the Kansas City Southern rail
network. ExxonMobil is bringing two brands of
gasoline: Mobil Synergy Supreme+ and Mobil
Synergy Extra (comparable to Pemex’s Premium
andMagna,respectively)andoneofdiesel,Mobil
Synergy Diesel. Supreme+ and Extra are sold afewcentscheaperthanPemex´s.
FirstgascaverninMexicostartsoperation
Cydsa, one of themain producers of salt in the
continent,reportedthatattheendofNovember
it began the operation of the first LPG storage
saline cavern in Mexico, which is located near
Coatzacoalcos, Veracruz. In November 2014
Cydsa and Petróleos Mexicanos (Pemex) signed
anagreementwherethe investmenttotaled just
over$200milliondollars.Thissiteisexpectedto
shelter 1.8 million barrels of LP gas, with the
capacitytoinjectandextractupto120thousand
barrelsperday.
THEAUTOMOTIVESECTOR
59%ofthecarssoldareimported
Imported cars represent 59% of the total new
vehiclessoldinMexicointhefirstelevenmonths
of 2017, the highest registered percentage in a
period similar to 2008, which highlights the
increaseddemandfortheseunits.InMexico808
thousand and 60 foreign automobiles were
commercializedbetween JanuaryandNovember
thisyear,3.3%higherthantheoneregisteredthe
previous year. This is due to the entry of new
brands,besides therearevehicleswhicharenot
made in the country and complement the
portfolio of firms that must meet the marketneeds.
IncreaseincarssenttoCanadaandEurope
InNovember2017,274 thousand520carswere
exported from Mexico, 11.9% more in
comparison with the same month in 2016. It is
thehighestincreaseforasimilartimeinsixyears.
Thiswas due to the increments of 74.2% in the
vehicles sent to Canada and 110.1% to Europe.
The reduction in car exports toUSAwas due to
thelowdemandof lightvehiclesinthatcountry,
whichareMexico’sspecialty.Themostexported
brandsfromMexicoareFiatChryslerAutomobile
(FCA)andGeneralMotors,which represent41%ofthetotalcarsreceivedbyUSA.
Salesofnewcarswillincreasein2018
It isexpected that the salesofnewautomobiles
willrecoverthefall it isestimatedin2017and2
typesofcarswillpushthemarket,theSUVsand
thecrossover,asMexicanconsumershaveshown
a high preference for this type of vehicles. It is
expectedthatin2018thesaleswillreturntothe
positive terrain with an increase of 1.8% and
reachingatotalof1.1millionunitsfortheendoftheyear.
FordputsintoMexicodeeraofelectriccars
Ford Motor Company decided to move the
production of the crossover electric automobile
fromMichigan, USA to Cuautitlán Izcalli, Estado
de México to make way for additional
investmentsinautonomousvehiclesintheirstate
of origin. Fordwill star constructing the electricvehicleinsummerof2020.
Carsandtrucksexportedare66%Mexican
The manufacturing industry in Mexico
contributed 66.3% of value to the exports of
automobilesandtrucksin2016,abovethe65.2%
of the previous year and has its highest level
since available registry, since 2003. This implies
9
that assemblers have increasingly turned to
inputsoflocalorigin,aswellastoservicesandto
Mexican labor in their production processes.
Mexico's automotive exports totaled 113 billion
dollarsin2013andaccountedforonethirdofthe
total sales of the manufacturing industry.
AutomotiveexportsgrewintheperiodofJanuary
toSeptemberofthepresentyearwith2.2million
units.
BILATERALNEWSANDEVENTS-MEXICOANDOTHERCOUNTRIES
INDIAMERCADOMIXCALCO
Ambassador Muktesh Pardeshi visited Indian
garmentsimportersandvendors(bothwholesale
aswellasretail)locatedatMixcalomarket.There
arearound50vendorssellingIndianproductsall
overMexico.Mexicoimportedabout328millionUSDworthoftextilesandgarmentsin2016.
UNITEDKINGDOMBritish fund will support projects from threestates
The states of Colima, Sonora, and Jalisco were
chosen by the British Government to receive
support from Newton Fund, representing an
amountof4millionpounds(equivalentto$100.2
million pesos), resource that will be used to
finance sustainable projects in the agro-food
sector. A memorandum of understanding on
researchandfinancingfortheagriculturalsector
was signed. The agreement will be valid until
September 30, 2021, committing resources,
either in species or financial, for research and
development in the field of the three Mexicanentities.
IINDONESIAIndonesiaandMexicoseektoboosttheirtrade
Indonesia aims to strengthen its relations with
both Mexico and countries in its region. The
ambassadorinMexico,YusraKhan,saidthatboth
countries are in time to renew themselves and
move towards development, making clear that
for Mexico the doors do not close before the
possible cancellation of the North America Free
trade Agreement (NAFTA). The trade balance
betweenMexico and Indonesia is dominated by
theAsiancountrywith$815milliondollars,being
themost renowned product the Toyota Avanza,
aswellasfootwear,electricalmachinery,rubber,
refrigerators,vegetablefats,textileproducts,and
in lastyear,papershipments toMexicogrew27
percent. While Mexico sent to Indonesia $176
million dollars in 2016, being themain products
electronic, mechanical devices, essential oils,
cotton, plastics, copper, pharmaceutical
products,amongothers.Intheagriculturesector,
recently IndonesiaandMexicoestablishedbases
to strengthen the sector in a cooperation of
researchanddevelopment,includingexchangeofcommercialagro-food.
GERMANYGermancompanysettlesinYucatan
The German company Leoni, specialized in
production and distribution of harness for
automotive industry, settled in Yucatan its fifth
plant inMexico,withan investmenthigher than
$350 million pesos. The new plant will export
from theAltura del Progreso Port to production
plantsofGeneralMotors,BMWandVolvowhichareinAsia,MexicoanUSA.
10
USAUSAwillbuymorecattlefromMexicothisyear
Despite the environment of uncertainty
surrounding the negotiations of the North
AmericanFreeTradeAgreement(NAFTA),theUS
continues to buy more livestock from Mexico.
USA will import more cattle from Mexico and
Canadain2017thanitdidthepreviousyear,until
November 2017, 25% more compared to the
sameperiodof2016.Itisprojectedthatthetotal
USA imports of Mexican cattle will be
approximately 1.16 million heads in 2017, thehighestsince2012
MULTILATERALEVENTSANDNEWSINVOLVINGMEXICO
Undersecretary of Industry and Commerce,Rogelio Garza Garza, participated in theWorldSteelSummit
The Undersecretary of Industry and Commerce,
participated in the Global Forum on Excess of
Steel Capacity, held in the City of Berlin,
Germany, under the German presidency of the
G20, whose efforts play an important role to
improve the global steel industry. The
participatingministers analyzed the excess steel
capacity as a global challenge that continues to
affect the sector, creating significant difficulties
for steel producers in advanced, emerging and
developing economies. They commented that
alleviating excess steel capacity becomes a
necessary condition for more stable, profitable
and sustainable commercial and employment
scenarios, which allows the industry to face aseriesoflong-termchallengesmoreeffectively.
Mexico participates in the Eleventh MinisterialConferenceoftheWTO
Mexico participates in the Eleventh Ministerial
ConferenceoftheWorldTradeOrganizationfrom
December 10 to 13, 2017 at Buenos Aires,
Argentina.Theprogramofactivities include: the
Symposium of Trade and Sustainable
Development 2017; Forumof Free Trade Zones;
the Product and Development Report:
Development and Economic Growth of the
commodity markets; Launch of the book "The
AgreementsoftheWorldTradeOrganization";E-
commerce: changes in the rulesof thegame for
customs, commerce and consumers; Digital
Economy Forum: the direction of growth,
regional trade and inclusion in Latin America;
Good Business Practices for effective consumer
protection; among others. The Ministerial
Conference is the most important decision-
making body of the WTO, composed of the
ministers of the 162 member countries of the
organization.
7thRoundofNegotiationsfortheModernizationoftheFTAEUMXEnds
The 7th Round of Negotiations for the
modernization of the Free Trade Agreement
between the European Union and Mexico
(FTAEUMX)concluded inBrussels,Belgium,after
almosttwoweeksofwork.Thisroundbeganwas
attendedby50officialsfromdifferentagenciesof
the public sector, as well as around 25
representatives of the private sector. Together,
all these efforts contributed to achieving key
commitments in strategic chapters such as:
investment, intellectual property, including
geographical indications, appellations of origin
and market access. In 2016, trade with the EU
was close to $62 billion dollars, which makes it
thethirdcommercialpartner.Likewise,theEUis
the second largest investor in Mexico, with an
accumulated investment of almost $175 billiondollars,between1999and2017.
11
11thMeetingofMIKTAForeignMinistersHeldinIstanbul
MIKTA is a forum for dialogue and cooperation
created in2013 that includesMexico, Indonesia,
theRepublicofKorea,TurkeyandAustralia.Asa
MIKTA member, Mexico is strengthening its
bilateral ties with non-traditional partners in
various geopolitical areas while increasing its
cooperation with them. Promoting initiatives tohelpaddressglobalchallenges.
COMMERCIALNEWSFROMBELIZE
SIBReport:ImportsDowninNovember
The Statistical Institute of Belize released the
latest figures in three categories, including the
External Trade Bulletin, the Consumer Price
Index,aswell as theLaborForce. Total imports
werevaluedatalittleoveronehundredandfifty-
fourmilliondollars,whichrepresentsadecrease
ofroughlythirteenmilliondollarsfrom2016.The
Mineral Fuels and Lubricants category fell from
sixteen point nine million dollars last year to
approximately thirteen million dollars in
November 2017, because no diesel fuel was
imported last month. In November 2016,
purchases of computer components and a one-
offacquisitionofdredgingequipmentamounted
tojustunderfortymilliondollarsinimports.This
year,thebringinginofcomputerpartsfellbysix
pointonemilliondollars.Exportswerealsodown
in November, sliding from nineteen point one
million dollars in 2016 to sixteen point nine
milliondollarsforthesameperiodthisyear.The
Consumer Price Index for November indicates
thattheaverageBelizeanhouseholdsawamean
increase of about one percent in the cost of
regularly purchased goods and services. The
price per gallon of premium gasoline rose
nineteen percent over the last twelve months,
peaking at twelve dollars and two cents in
November. The cost of diesel went up by
seventy-one cents per gallon. Punta Gorda
recorded the highest overall increase in
consumer prices, with an inflation rate of onepointninepercent.
TheLastGaspofPetrocaribeintheHouse
The Government introduced the third General
Revenue Appropriation Supplementary Bill of
2017, concerning the last of the Petrocaribe
funds spent by Government. After several years
of riding high on the funds obtained through
Venezuela to spend on everything from sports
stadia to tacos and pibil, the funds slowed to a
trickleandtheprogramwasbrieflysuspendedin
September due to concerns about supply from
the South American country, before being re-
started in October. The Bill goes to the Finance
and Economic Development Committee before
returning at the next House session for secondandthirdreadings.
Taiwan Comes ThroughAgain –US $40Millionover4Years
Aforty-millionU.S.dollarmotionforaloanfrom
theExport-ImportBankof theRepublicofChina
(Taiwan)wastabled in theHouse.The loan is to
be disbursed in four equal annual instalments
between 2017 and 2020, while its term is for
twenty years less graceperiodof three years to
be repaid later on. PrimeMinister Dean Barrow
reiterated the strength of the bond betweenTaiwanandBelize.
12
APPENDIX-STATISTICS
INDIA-BELIZE
I.BilateralTrade(Belize-India)inJanuary-Nov2017comparedtoJanuary-Nov2016(FiguresinThousandUSD)
Export Import Total Growth in percentage
of Belize’s Exports in2017over2016
Growth in percentage ofBelize’s Imports in 2017over2016
Belize’stradewithIndia
1,442
11,838
13,280
255.7%
-0.43%
Belize’stotalglobaltrade
274,428
802,037
1,076,465
20.02%
-5.49%
II.BelizeImportStatisticsToIndiaCommodity:_Total,AllCommodityChapters
YearToDate:January-November
Commodity DescriptionUnitedStatesDollars %
Change
2015 2016 2017 2017/2016
_Total AllCommodityChapters17,723,24
111,889,63
211,838,44
8 -0.43
24TobaccoAndManufacturedTobaccoSubstitutes 8,844,856 7,326,042 6,909,518 -5.69
61ApparelArticlesAndAccessories,KnitOrCrochet 974,731 1,133,397 1,133,397 -23.33
62ApparelArticlesAndAccessories,NotKnitEtc. 520,836 654,855 733,360 11.99
72 IronAndSteel 410,149 542,383 1,503,565 177.21
30 PharmaceuticalProducts705,511 280,964 571,790 103.51
38 MiscellaneousChemicalProducts 154,232 391,791 171,761 -56.16
68ArtOfStone,Plaster,Cement,Asbestos,MicaEtc. 40,112 34,704 93,829 170.37
13
63TextileArtNesoi;NeedlecraftSets;WornTextArt 172,434 83,833 207,024 146.95
84NuclearReactors,Boilers,MachineryEtc.;Parts 4,108,912 272,578 75,683 -72.23
40 RubberAndArticlesThereof 278,318 154,541 97,239 -37.08
III.BelizeExportStatisticsToIndia
Commodity:_Total,AllCommodityChapters
YearToDate:January-November
Commodity DescriptionUnitedStatesDollars %
Change
2015 2016 2017 2017/2016
_Total AllCommodityChapters 1,093,606 405,300 1,441,642 255.70
23FoodIndustryResidues&Waste;PrepAnimalFeed 47,557 125,697 792,148 530.20
07EdibleVegetables&CertainRoots&Tubers 0 0 211,792 n/a
61ApparelArticlesAndAccessories,KnitOrCrochet 43,889 0 249,919 n/a
44WoodAndArticlesOfWood;WoodCharcoal 0 0 88,716 n/a
62ApparelArticlesAndAccessories,NotKnitEtc. 23,506 0 52,002 n/a
71NatEtcPearls,PrecEtcStones,PrMetEtc;Coin 41,475 15,173 28,309 86.58
42LeatherArt;SaddleryEtc;HandbagsEtc;GutArt 10,508 0 15,760 n/a
63TextileArtNesoi;NeedlecraftSets;WornTextArt 0 0 1,376 n/a
65 HeadgearAndPartsThereof 0 0 693 n/a
22 Beverages,SpiritsAndVinegar 2,084 30,862 0 -100
14
APPENDIX-STATISTICS
INDIA-MEXICO
I.BilateralTradeinJanuary-October2017comparedtoJanuary-October2016(FiguresinMillionUSD)
Export Import Total Growth in percentage of
Mexico’s Exports in 2017over2016
GrowthinpercentageofMexico’s Imports in2017over2016
Mexico’stradewithIndia
2,436
4,189
6,625
57.02%
18.38%
Mexico’stotalglobaltrade
336,172
347,307
683,479
9.79%
8.67%
15
II.MexicoImportStatisticsFromIndia
January-October
HSCode Commodity
UnitedStatesThousdandsofDollars %Change
2015 2016 2017 2017/2016
_Total AllCommodityChapters
3,426,484 3,538,252 4,188,564 18.38
87Vehicles,ExceptRailwayOrTramway,AndPartsEtc
929,792 1,347,131 1,660,688 23.28
29 OrganicChemicals335,679 286,059 340,440 19.01
84NuclearReactors,Boilers,MachineryEtc.;Parts
248,247 259,403 341,573 31.68
85ElectricMachineryEtc;SoundEquip;TvEquip;Pts
261,849 246,544 278,585 13.00
76 AluminumAndArticlesThereof350,508 159,239 180,954 13.64
72 IronAndSteel83,886 80,934 148,018 82.89
98 SpecialClassificationProvisions,Nesoi86,878 89,523 114,889 28.33
62 ApparelArticlesAndAccessories,NotKnitEtc.84,918 90,884 88,938 -2.14
39 PlasticsAndArticlesThereof86,211 79,502 83,617 5.18
69 CeramicProducts4,060 20,745 77,810 275.07
71NatEtcPearls,PrecEtcStones,PrMetEtc;Coin
86,623 85,324 72,204 -15.38
90Optic,PhotoEtc,MedicOrSurgicalInstrmentsEtc
49,883 55,044 62,964 14.39
61ApparelArticlesAndAccessories,KnitOrCrochet
79,450 68,806 61,994 -9.90
73 ArticlesOfIronOrSteel134,690 56,298 63,867 13.45
30 PharmaceuticalProducts68,905 85,483 68,462 -19.91
32Tanning&DyeExtEtc;Dye,Paint,PuttyEtc;Inks
58,373 58,541 59,167 1.07
40 RubberAndArticlesThereof43,422 38,930 43,302 11.23
09 Coffee,Tea,Mate&Spices27,755 21,975 31,568 43.66
38 MiscellaneousChemicalProducts30,173 34,475 36,115 4.76
54ManmadeFilaments,IncludingYarns&WovenFabrics
34,087 25,975 30,316 16.71
12OilSeedsEtc.;MiscGrain,Seed,Fruit,PlantEtc
14,899 20,808 28,454 36.75
16
III.MexicoExportStatisticsToIndia
January-October
HSCode Commodity
UnitedStatesThousandsofDollars %Change
2015 2016 2017 2017/2016
_Total AllCommodityChapters
1,637,850 1,551,615 2,436,385 57.02
27MineralFuel,OilEtc.;BituminSubst;MineralWax
1,245,520 1,157,349 1,821,118 57.35
85ElectricMachineryEtc;SoundEquip;TvEquip;Pts
118,739 115,205 247,253 114.62
71NatEtcPearls,PrecEtcStones,PrMetEtc;Coin
14,506 29,904 81,834 173.65
84NuclearReactors,Boilers,MachineryEtc.;Parts
73,396 60,520 75,470 24.70
87Vehicles,ExceptRailwayOrTramway,AndPartsEtc
63,078 42,765 47,471 11.01
29 OrganicChemicals21,155 35,410 30,406 -14.13
32Tanning&DyeExtEtc;Dye,Paint,PuttyEtc;Inks
7,186 13,532 25,928 91.61
72 IronAndSteel20,422 7,947 13,077 64.54
30 PharmaceuticalProducts3,164 4,471 9,113 103.81
74 CopperAndArticlesThereof2,234 102 10,060 9755.79
17
IV.MexicoImportStatisticsFromWorld
January-October
HSCode Commodity
UnitedStatesThousandsofDollars %Change
2015 2016 2017 2017/2016
_Total AllCommodityChapters
330,751,548
319,595,42
5
347,306,63
5 8.67
85ElectricMachineryEtc;SoundEquip;TvEquip;Pts
70,888,967 70,003,626 71,070,294 1.52
84NuclearReactors,Boilers,MachineryEtc.;Parts
56,581,620 55,435,602 58,685,708 5.86
87Vehicles,ExceptRailwayOrTramway,AndPartsEtc
30,783,513 30,698,179 34,200,615 11.41
27MineralFuel,OilEtc.;BituminSubst;MineralWax
22,542,245 19,769,571 28,267,874 42.99
39 PlasticsAndArticlesThereof18,710,910 18,419,307 19,242,792 4.47
90Optic,PhotoEtc,MedicOrSurgicalInstrmentsEtc
12,479,514 11,788,091 12,506,626 6.10
98 SpecialClassificationProvisions,Nesoi9,331,281 10,226,200 12,059,727 17.93
72 IronAndSteel8,001,364 7,039,596 8,628,489 22.57
73 ArticlesOfIronOrSteel7,816,829 7,243,128 7,886,324 8.88
29 OrganicChemicals7,000,352 6,052,077 7,339,889 21.28
18
V.MexicoExportStatisticsToWorld
January-October
HSCode Commodity
UnitedStatesThousandsofDollars %Change
2015 2016 2017 2017/2016
_Total AllCommodityChapters
318,803,58
2 306,206,600
336,171,69
8 9.79
87Vehicles,ExceptRailwayOrTramway,AndPartsEtc
75,710,487 71,971,430 83,339,724 15.80
85ElectricMachineryEtc;SoundEquip;TvEquip;Pts
66,963,276 61,742,135 66,780,811 8.16
84NuclearReactors,Boilers,MachineryEtc.;Parts
49,425,809 51,014,303 54,653,270 7.13
27MineralFuel,OilEtc.;BituminSubst;MineralWax
20,079,781 14,667,281 17,669,440 20.47
90Optic,PhotoEtc,MedicOrSurgicalInstrmentsEtc
12,536,202 13,378,203 14,376,913 7.47
94Furniture;BeddingEtc;LampsNesoiEtc;PrefabBd
8,176,872 8,484,851 8,830,184 4.07
39 PlasticsAndArticlesThereof6,953,101 6,943,710 7,494,721 7.94
07 EdibleVegetables&CertainRoots&Tubers4,673,178 5,469,291 5,453,580 -0.29
71NatEtcPearls,PrecEtcStones,PrMetEtc;Coin
5,961,653 6,282,551 5,805,369 -7.60
08EdibleFruit&Nuts;CitrusFruitOrMelonPeel
3,893,466 4,350,322 5,604,059 28.82
19
VI.MexicoImportStatistics
January-October
PartnerCountryUnitedStatesThousandsofDollars %Change
2015 2016 2017 2017/2016
World330,751,548 319,595,425 347,306,635 8.67
UnitedStates156,480,838 147,748,977 160,216,091 8.44
China58,502,895 57,833,256 61,029,873 5.53
Japan14,461,364 14,571,221 15,214,461 4.41
Germany11,689,174 11,396,360 13,644,374 19.73
KoreaSouth12,572,681 11,288,774 13,330,839 18.09
Canada8,133,169 7,987,476 8,011,076 0.30
Malaysia6,142,246 6,799,640 6,483,230 -4.65
Taiwan5,531,313 5,589,496 6,122,880 9.54
Italy4,165,746 4,369,897 5,083,965 16.34
Thailand4,080,817 4,347,232 4,901,009 12.74
Brazil3,799,210 3,927,182 4,507,965 14.79
India(12th)3,426,484 3,538,252 4,188,564 18.38
Spain3,762,506 3,703,785 4,116,427 11.14
Vietnam3,037,162 3,317,268 3,903,274 17.67
20
VII.MexicoExportStatistics
January-October
PartnerCountryUnitedStatesThousandsofDollars %Change
2015 2016 2017 2017/2016
World318,803,582 306,206,600 336,171,698 9.79
UnitedStates257,703,497 248,064,624 269,438,327 8.62
Canada8,888,608 8,654,518 9,314,428 7.63
China4,037,120 4,223,909 5,492,531 30.03
Germany3,043,607 2,901,026 5,528,329 90.56
Spain3,098,390 2,681,844 3,447,977 28.57
Japan2,533,132 3,100,913 3,301,744, 6.48
Brazil3,372,164 2,439,317 2,941,712 20.60
Colombia3,040,405 2,526,450 2,706,606 7.13
KoreaSouth2,250,719 2,028,650 2,704,601 33.32
India(10th)1,637,850 1,551,615 2,436,385 57.02
UnitedKingdom1,627,805 2,720,713 1,869,256 -31.30
21
VIII.MexicoTotalTrade
January-October
PartnerCountryUnitedStatesDollars %Change
2017/2016
2015 2016 2017
World649,555,130
625,802,02
5
683,478,33
3 9.22
UnitedStates414,184,335
395,813,60
2
429,654,41
9 8.55
China62,540,015 62,057,165 66,522,405 7.20
Germany14,732,782 14,297,386 19,172,704 34.10
Japan16,994,496 17,672,135 18,516,206 4.78
Canada17,021,777 16,641,994 17,325,504 4.11
KoreaSouth14,823,401 13,317,425 16,035,441 20.41
Spain6,860,896 6,385,629 7,564,404 18.46
Malaysia6,242,651 7,008,198 7,167,306 2.27
Brazil7,171,374 6,366,499 7,449,678 17.01
Taiwan5,765,088 5,783,969 6,463,903 11.76
India(10th)5,064,335 5,089,868 6,624,949 30.16
Italy5,586,382 5,700,715 6,128,270 7.50
Thailand4,333,903 4,714,749 5,393,900 14.40
top related