Opportunities for cross border trade with Mexico

1. Mexico’s Cross Border Trade Opportunities & Competitiveness
Ricardo Villarreal
Deputy Trade & Investment Commissioner
ProMéxico Los Angeles

2. ProMexico - Goals - Services - Business trips - Expos & conventions - Trade missions - Specialized advice - Facilitator with Gov. entities

3. Introduction - Mexico’s GDP: USD $1.3 Trillion - In 2013 FDI in Mexico reached a record $35 billion - Mexico is 3rd trading partner for USA - Trade has grown by 30% since 2010 - US-MEX trade is USD $1.38 Billion Daily - 6 million US jobs depend on trade with Mexico - 12 trade agreements with 45 countries

4. Our Border - 10 states - 1,954 miles - 56 points of entry - 1 million cross daily - 300,000 vehicles cross - If it were a country it would be the 4th economy

5. Mexico’s Opportunities and Advantages - Young population - Bilingual and Bicultural - Skilled labor - Competitive costs - Stable currency - Geographic location - Gateway to Latin America - Friendly regulatory & legal framework

6. China vs. Mexico Case
- Mexico’s competitiveness
- Wages in China have almost quadrupled in the last 5 years; Mexico unchanged
- Manufacturing was 14% less in China than US; 2018 cost projections
- Transoceanic shipping costs (oil prices)
- Average electricity costs are 4% lower in Mexico than in China, industrial natural gas is 63% lower in Mexico too
- Mexico’s FTA’s in the world more than double China and keep growing
-Mexico’s industry clusters development
-Good reputation for protecting intellectual property, patents, and trademark rights
-Shared production with US is 40%

7. How Mexico and the US can work together
- The US needs to make trade with Mexico more efficient
- Could make visa process for startup entrepreneurs easier
- Mexico needs to continue improving their education system, and overcome the situation with drug cartels, corruption and insecurity
- Mexico to improve infrastructure, roads, seaports, and airports
- Mexico needs to prepare for more and more companies looking to move their manufacturing facilities there

9. MEDICAL DEVICES
•We are the largest exporter in Latin America and main supplier to the US.
•5th global exporter of medical devices.
AUTOMOTIVE AND AUTOPARTS
•8th producer and 4th exporter globally of new light vehicles in the world (Q1 2012).
•11% of light vehicles sold in the US were produced in Mexico.
•Mexico is the main auto parts supplier to the US and the 5th worldwide.
AEROSPACE
•Mexico is the 6th supplier to the American aerospace industry.
•There are 270 aerospace companies in Mexico (4 X as many since 2005).
ELECTRIC-ELECTRONIC
•Leading flat TV screen exporter in the world.
•The top exporter of refrigerator with freezer (with separate doors).
Source: FEMIA/ GTA/ AMIA/ OICA. .
370 billions in exports
+80% manufactures
+50% medium and high tech manufactures
Leadership in key sectors

10. Jetta Bicentenario (VW)
Skyworks
Mabe
Intel Design Center
Silanes
Honeywell (A350)
Ford
Bombardier Learjet 85
SAFRAN
Ericsson
GE (Genx turbine)
Siemens
An excellent business case for advanced manufacturing

11. How Safe is Mexico?

12. Ricardo Villarreal
ricardo.villarreal@promexico.gob.mx
Tel: (213) 382-3179
2401 West 6th Street
Los Angeles, CA 90057
www.promexico.gob.mx
/ProMexicoLA @ProMexicoLA ProMéxico Los Angeles