gateway to america (continent)
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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/
