we are committed to free trade -...
TRANSCRIPT
Doing business with Australia
R. Esau Garza de Vega
Senior Advisor
Trade & Investment for Stategic Markets
ProMexico Australia May 2015
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∙ a democracy.
∙ one of the largest economies in the world.
∙ an example of macroeconomic stability.
∙ an open economy.
∙ young, talented and highly-skilled people.
∙ a leader in advanced manufacturing.
∙ the next global logistics high value added hub.
∙ a world within a country.
∙ a reliable and attractive destination for investment.
∙ ready to increase its productivity through its structural reforms.
is…
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We are committed to free trade
Our FTAs give privileged access to 1.2 billion consumers.
Brazil
8 China 19 United States 20 Colombia
42
45 countries
with FTA’s
With the TPP, Mexico will increase its presence in Australia, Brunei, Malaysia, New
Zealand, Singapore and Vietnam. Source: ProMéxico with information of Brazil: OAS; China: Chinese Ministry of Commerce; Colombia: Colombian Ministry of
Commerce; United States: Office of the US Trade Representative; Chile: Direcon; Mexico: Ministry of Economy.
4
The 12 countries of the
TPP represent: 28% of world imports.
Mexico and the TPP
23% of world exports.
38% of global GDP.
11% of the world’s population.
5
NAFTA: A change of paradigm
+ +
Represents
more than
1/4
of the world’s Gross
Domestic Product
(GDP)
Trade between
NAFTA partners
accounts for more
than 100 million
dollars per hour.
It produces
goods and
services worth
19 trillion
dollars per
year.
Nearly 474 million
people (7 out of
100 inhabitants in
the world) trade
freely in the region.
NAFTA is
the largest
free trade
region in the
world.
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Mexico as part of NAFTA
• +50 border crossings
with the US.
• NAFTA market= 19
trillion USD. • 16 trillion European Union.
• Bilateral trade with the
U.S.= 1 million dollars
per minute.
• 1 million people and 300
thousand vehicles
crossing the border daily.
NASCO Corridor
Source: ProMéxico with information of SCT/ US Department of Transportation.
7
NAFTA’S intra-regional trade
24 in
hours (Figures in MUSD)
Other products
830
709
19 Mining
26 Pharmaceutical
38 Medical devices
199 Electric
212 Chemical
247 Agrifood
439 Electronic
Oil, gas and mineral fuels
540
Automotive and auto parts
Source: ProMéxico with information of GTA.
The Pacific Alliance
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Elimination of 100% of tariffs. 8% of
them at a short or medium term.
Elimination of visas between members.
Platform for student and academic mobility.
Unification of stock exchanges through the Latin American Integrated Market (MILA, in its Spanish acronym).
Standardization of health and regulatory certifications.
30 observer countries. México will hold the presidency
pro tempore in 2014.
9
Bilateral trade between
Mexico and Australia (2003-2014)
Source: ProMéxico with information of Banxico, 2013.
Exports Imports Trade balance
1,009
553 429
199
5 competitive advantages of Mexico
Human Capital
Sophisticated economy
Macroeconomic
environment
Gateway to America
Internal market
10
Mexico: 14th largest country
Equals the
territory of the four largest
countries in Europe
Germany
Sweden
France
Spain =
11
12
Evolution of inflation, exports and international reserves in Mexico (1993- 2Q 2014)
Solid macroeconomic environment
226 BUSD (2Q 2014)
BUSD
Inflation rate 2013
3.97% record of billion USD 380
Exports 2013
401 BUSD
Manufactures
Oil
Primary
Inflation
Reserves
record of billion USD 176
Reserves 2013
Source: ProMéxico with information of INEGI / Bank of Mexico. Figures to 2Q of 2014.
13
FDI flows into Mexico (1999-2014*)
MUSD
Record-high 39,200
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
29,000**
24,000**
Source: ProMéxico,with information of the Ministry of Economy. UNCTAD *Q3. 2014 figures.
15,310*
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FDI inflows in Mexico per sector
Manufactures
Finance and Insurance
Media services
Commerce
Mining
Real estate Tourism
Construction
Professional services
169,885
60,807
30,925
18,255
17,924
13,842 12,951
12,152
6,973
5,847
120,736
Support services to business
Others
(1999-Q1 2014 / figures in million USD)
Source: ProMéxico with information of the Ministry of Economy.
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16 Río de Janeiro
Mexico to Germany Brazil China Colombia Korea USA India Poland Turkey
6 New York
4 L.A.
15 Rotterdam
18 Yokohama
22 Shenzhen
20 Shanghai
35
25
11
23
15
18
32
10
6
17
21
-
-
31
25
26
12
- 17 32 15 33 11 20 1
35 4 24 3 15 17 36 27
7 - 31 12 34 15 24 18 19
32 32 - 26 2 17 11 33 24
30 30 - 28 4 19 9 31 32
16
28
10
14.4 25 25.3 23.4 17.3 16.3 15.4 22.4 20.9 19.6
Easy access to the world
Source: ProMéxico with information of Sea Rates
Mexico
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A country with great infrastructure
Mexico:
• 3rd country with more
airports.
• 64 international airports.
• 63 border crossings
• 68 ports for natural and domestic
traffic.
• 16,777 miles of railroads.
• 231,000 miles of roads
Source: ProMéxico, with information of CIA Factbook and SCT.
Lázaro
Cárdenas
Manzanillo
Veracruz
Tampico
Altamira
Guanajuato
Monterrey
Guadalajara
SLP
17
118 million inhabitants Equals the population of
Colombia, Spain and Australia combined
Territory and demographics are on our side
Men Women
The median age of our population is 27 years 14th largest country by territory
Source: ProMéxico with information of INEGI.
18
Mexico’s Retail Sales Index
Index 2003=100; SA
GDP by PPP
(1990-2018)
• $15,000 USD= median income.
• According to forecasts, income will grow 20% by 2016.
Large domestic market
Historic Forecast
Source: ProMéxico, with information from INEGI and IMF.
A country of competitive costs
19 Source: ProMéxico with information of BCG Perspectives.
India Czech
Republic
Austria
Sweden Indonesia Brazil
Poland Thailand Spain Switzerland Taiwan
Australia Mexico Canada Belgium Italy Korea United
States
China
Russia
United
Kingdom Holland France Japan Germany
Smallest
exporter Largest
exporter
Labor Electricity Natural gas Others
Average production cost index 2014
4 points
above
China.
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2.5 - 3% +0.1% +0. 5%
+1% +0. 3% 4.4 - 4.9%
Labor
Reform
Telecom
Reform
Energy
Reform
Financial
Reform
Impact of reforms in GDP
Forecasts of structural reforms effect on GDP Growth, (%)
Natural GDP
Growth Rate
(2013)
New Natural
GDP
Growth Rate
(2018)
Source: ProMéxico with information of SHCP.
Mining industry in Mexico
21
Mexico is the first destination
for exploration investment in
Latin America and fourth worldwide.
In 2013
Mexico ranked
5th place
as best destination to invest in mining projects.
Mexico is the largest producer and exporter
of SILVER in the world.
The second global producer of
fluorite and bismuth. The second largest
GOLD producer
in Latin America. The third largest COPPER producer
in Latin America.
Source: ProMéxico, with information of The Silver Institute, Mexican Mining Chamber (CAMIMEX), Global Trade Atlas, Metals Economics Group, INEGI, Mineral Commodity
Summaries, Behre Dolbear and U.S. Geological Survey, 2013.
www.promexico.gob.mx
@ProMexicoTW
+52 (55) 54 47 7000
Camino a Santa Teresa 1679,
Col. Jardines del Pedregal
CP 01900, México, D.F.
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R. Esau Garza de Vega
Senior Advisor
Trade & Investment for Stategic Markets
ProMexico Australia