Recommended
More Related Content
What's hot
What's hot (20)
Similar to Doing business in mexico ppt may2017
Similar to Doing business in mexico ppt may2017 (20)
More from Business Turku
More from Business Turku (20)
Recently uploaded
Recently uploaded (15)
Doing business in mexico ppt may2017
- 1. JOSÉ ALVARADO Embassy of Mexico in Finland Helsinki, May18th, 2017 @EmbaMexFin /Embassy of Mexico in Finland DOING BUSINESS IN
- 2. Table of Contents I. Mexico at a glance II. Mexico and Finland III.Structural Reforms in Mexico IV.Business Opportunities
- 3. Mexico at a glance… Mexico is full of business opportunities. • Strong commitment to open market economy with 12 FTA with 46 countries. • Political and economic stability. • Mexico is the 15th largest economy in the world. • 2nd biggest economy in Latin America. • 1st world exporter of: Silver, Beer, Flatscreen TV’s, Refrigerators, Avocados. • Mexico is also the third largest exporter of smartphones and fourth largest automobile exporter.
- 4. Mexico at a glance…
- 5. Mexico at a glance…
- 6. 15th largest economy in the world and 2nd in Latin America (IMF 2012) 14th largest country with 1,964,375 km2 of land area (almost 6x the size of Finland!) 11th most populated country 120 million inhabitants Political division: - 32 States Mexico at a glance…
- 7. Mexico at a glance…
- 8. Mexico at a glance…
- 9. Mexico at a glance…
- 10. Mexico at a glance… A sophisticated economy Source: IHS Data – Global Insight; ProMéxico’s Analysis. Data in USD Real terms, 2005, considering de G20 countries. Medium Technology (MT): • Specialty Chemicals • Machinery, Equipment, Appliance • Electrical Industrial Machinery • Motor Vehicles & Parts Total • Motorcycles & Transport. Equipment • Railroads & Equipment High Technology (HT): • Aircraft & Spacecraft • Advanced materials • Computers & Office Machinery • Communication Equipment • Medical, Precision & Optical
- 11. MEXICO AND FINLAND FLUENT HIGH-LEVEL DIALOGUE President Sauli Niinistö State Visit to Mexico May 2015 Primer Minister Juha Sipilä official visit to Mexico October 2016 IX meeting of the Political Consultation Mechanism Mexico City, June 2016 Minister of Enrivonment Kimmo Tiilikainen COP13 on Biodiversity, Cancun, Mexico Undersecretary of State Petri Peltonen work visit to Mexico October 2016 Foreign Minister José Antonio Meade Visit to Finland February 2015
- 16. Mexico vis-à-vis Finland Source: Secretary of Economy.
- 17. The Reforms
- 18. Estimates of the impact of structural reforms on growth of GDP (% ) Expected Impact of Reforms on GDP Labor Reform Natural rate of growth of GDP (2013 ) Telecommunications Reform Energy Reform Financial Reform Growth Rate estimated ( 2018 ) 2.5 - 3% +0.1% +0. 5% +1% +0. 3% 4.4 - 4.9%
- 19. Business Opportunities by Sector Renewable energies
- 22. Business Opportunities Source: El Economista.
- 24. Don’t forget to check out our newsletter…! https://issuu.com/mexicointhenorth/docs/mexico_in_the_north_2-2017
- 25. Contact Information @ www.promexico.gob.mx carlos.perezcirera@promexico.gob.mx @ProMexicoTW +46 (8) 6613132 +46 763 494149 Riddargatan 11B, 11451 Stockholm, Sweden mexican.embassy@kolumbus.fi Embassy of Mexico in Finland Simonkatu 12 A 00100 Helsinki Tel. (+358) 9 5860430 @EmbaMexFin @NormaPensado /Embassy of Mexico in Finland ProMéxico Commercial Office
- 26. JOSÉ ALVARADO Embassy of Mexico in Finland Helsinki, May18th, 2017 @EmbaMexFin /Embassy of Mexico in Finland DOING BUSINESS IN
Editor's Notes
- I will present an overview of Mexico´s economic situation and the business opportunities with Finland, but I would like to keep it short.
- There are many good reasons to invest and do business in Mexico. For the last decades, Mexico has boasted political and economic stability. We have been open to business with a sound commitment towards free trade and market economy. Mexico is the 15th largest economy in the world (Finland is the 44th), second in Latin America and currently has 12 free-trade agreements with 46 countries, including with the European Union, which makes it one of the countries with the most FTA´s in the world. Mexico has a clear aim about where it wants to be in the coming decades, and that is why in 2013 started a transformation process which required a consensus of the main political drivers which resulted in 11 long-awaited structural reforms. Therefore, responsible and sound macroeconomic policies over the last decades along with the promise of more growth based on structural reforms, make of Mexico a land of business opportunities. “Mexico ranks within the top 10 worldwide industries in sectors such as automotive, electronics, precision manufacturing, telecom, aerospace, food, chemicals, renewable energy, medical devices, metal components, pharmaceuticals, and plastics.”
- Before I keep going, I want you to get glimpse of this map so that you get an idea about the size of Mexico and its potential. When dealing with Mexico, you have to be aware that it is a very large and complex country which is divided into 32 federal states, each one with it very own investment and business policies, and one national investment policy set by the Central Government (Ministry of Economy-ProMéxico). This is just to say that the whole country is also in a healthy competition to attract your business!
- As you can see from the slide, Mexico also has one of the most sophisticated economies in the world in terms of percentage of GDP from medium and high technology. It is important to debunk the myth that Mexico is only a manufacturing country, and although we are very competitive in that sector, Mexico has excelled in many other fields and it is quite inserted in high-value global production chains.
- There has not been a moment in history were we have had so much contact with Finland. We share many values in the world stage, and regarding our bilateral relations, there are many opportunities to be had in terms of political concertation, business, cooperation and mutually beneficial projects.
- Finland and Mexico might be very far away and might seem like very different countries, but let me tell you that our relation is diverse and complementary. At a political level, we are currently in one of the best moments of our relations. We are not only celebrating our 80th anniversary of diplomatic relations, but we have had many high level visits during these last years. This, in turn, has led to the deepening of commercial and economic ties between both countries. I am happy to say that many Finnish business delegations have visited Mexico alongside high-level visits and with coordination from Finpro and the Mexican Embassy. As for the current slide, I want you to notice the potential of the Mexican market with a population of 127 million Mexicans, and an increasing middle-class with healthy consumption habits.
- (CONT. ) PARTE 2 DE 2
- In terms of trade, we have had sustained trade, however, it does not match its real potential. Over the course of these last years, there have been ups-and-down with our trade, due in part to the international macroeconomic environment.
- In terms of trade, we have had sustained trade, however, it does not match its real potential. Over the course of these last years, there have been ups-and-down with our trade, due in part to the international macroeconomic environment.
- Finnish companies have been investing in Mexico for many years now. Currently, there are around 50 Finnish companies based in Mexico, mainly in the manufacturing, business support and professional services sectors. Most Finnish companies in my country are based in the capital: Mexico City, followed by Nuevo León (which is a very industrialized state) and Tamaulipas (along with Nuevo León, also a Northern state with border to the U.S.). However, in terms of investment flows, Nuevo León and Tamaulipas are at the forefront, while Mexico City takes 3rd place. As you can notice, last year and this year there is a reduction of Finnish investment, however, you have to keep in mind that these “reductions” are mostly based on portfolio transactions and/or company mergers and acquisitions. (SE CONSULTO CON PROMEXICO SOBRE EL MOTIVO DE LA REDUCCIÓN, ..AL NO CONOCER LA INFORMACIÓN, CONSULTÓ CON FINPRO). What I can tell you is that many Finnish companies are currently reaching out to the Mexican market and we are aware of a couple of new partnerships between Mexicans and Finns.
- Since 2013, Mexico undertook a transformation process based on 11 structural reforms. These reforms are also aimed at increasing productivity in our country, which will kick-start our economic growth and development. 6 out of the 11 reforms are aimed at increasing productivity at home. The energy reform aims at lower energy costs due to a recent opening of the sector and new flows of investment. The telecommunications reform now allows Mexicans to choose between a wide variety of service providers, and the Red Compartida project, which is the biggest telecom project in Mexican history, aims at increasing coverage, promotes competitive prices and enhances the quality of services according to international standards. The Education reform guarantees the right of children to have a comprehensive and quality education with the aim to make our future generations competitive in the globalized world. The Antitrust reform enhances regulations and the legal framework to guarantee fair and healthy competition among economic actors. Along with the new Special Economic Zones, Mexico hopes to attract many new investments. The Financial reforms aims at providing better conditions to help business flourish by giving more loans with better interest rates. The Fiscal reform will provide for a more just system of taxation and increase revenue. The labor reform will promote job creation and better overall working conditions.
- In just a few years, the reforms are proving useful, we have had successful bidding rounds in terms of energy products, we have new investments coming in, new foreign companies are competition for the Mexican market and overall our country is aimed for a deep “transformation”. But there is still more to come. What you see here is a project from our authorities on the expected GDP impact of 4 of the reforms. Of course, these are projections and should be analyzed as such, but still they are important indicators of what could come ahead.
- As I mentioned earlier, there are many opportunities arising from our Energy Reform. Finnish authorities and companies have made it clear that they are interested in the energy reform and finding mutual interests with Mexican companies (p.e j. HiPro-Ecológico y Metener Oy). Mexico is aiming at increasing its sources of energy; moving towards cleaner, greener and more environmental-friendly energy. We believe that there are many areas for collaboration with Finland, given your expertise in these fields. Mexico’s wind potential is estimated at 71,000 MW. Mexico is among the countries with the highest sun exposure. It is part of the “Solar Belt” and could generate enough energy to be self-sufficient and to export. Average of 5-6 KWh/m2. Mexico is ranked 4th globally in geothermal energy generation. Mexico has an hydric potential of 53,000 MW. One of the most important in Latin America. Mexico is the leading photovoltaic module supplier in Latin America. With a production capacity that exceeds that of Brazil, Chile and Argentina.
- To wrap up, we would like to make available our contact information in case you have any more specific questions or if you need any particular information that we can help you with. You will also find the contact detail of the ProMéxico office in Sweden, which overlooks Finland and is more than willing to help out in your business opportunities.