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Mexico is their 2nd largest export market

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Presentation on theme: "Mexico is their 2nd largest export market"— Presentation transcript:

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2 Mexico is their 2nd largest export market
WI IA MO NE KS OK TX AZ AR IN MI OH 1 Mexico ranks among the top 3 export markets for 33 states 6 million U.S. jobs depend on trade in goods and services with Mexico Texas $100 USD Billion 1 Mexico is their 2nd largest export market Source: Ministry of Economy.

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4 Mexico: Second largest buyer to the U.S
Mas que los BRICS combined or UK, Germany and France These exports are important because Mexico, the United States and Canada jointly manufacture products. In fact, 40% of the content of Mexican exports is originally made in the U.S. (Canada 25% and China 4%). Source: SE- NAFTA with data from Wisertrade.

5 The Importance of NAFTA
$530 $290 $99 NAFTA represented a change of paradigm in regional integration; innovative and unprecedented for its time. Let me share with you some relevant figures: The NAFTA is the largest FTA globally. The total population of the region sums more than million people. NAFTA represents a GDP of 20.5 billion dollars. Thus, just over 26% of the world’s GDP. Exports among members are estimated at over 140 million dollars per hour. ECONMIC INTEGRATION/ MOST COMPETITIVE REGION IN THE WORLD

6 60% 40% 47% 35% 25% US Trade Deficits CHINA GERMANY JAPAN KOREA Mexico
9% JAPAN 9% 35% 25% KOREA 4% Mexico 9% 12%

7 Evolution of exports from Mexico
( ) Manufacture 85% BUSD Manufactures Oil Oil 72% Primary Reserves Thanks to its macroeconomic soundness, Mexico is one of the most competitive countries for business. Our inflation rate in 2014 was 4.1%. The export profile of our country has had a major change in the last three decades. Mexico went from being an exporter of oil to one of the major exporters of manufactures in the world. In 2014 we had an amount of exports worth 397 billion dollars, representing a record high. Mexico's total trade amounted to 797 billion dollars in 2014, which places us as a major exporter in the international market. The country's international reserves reached a record 193 billion dollars in 2014, which is also a record high. Source: ProMéxico with information from Central Bank.

8 Mexico: Leading exporter in Latin America
80% And it is the largest exporter in Latin America and number 15 in in the world. 73.5% of exports (of high and medium technology) in advanced manufacturing in Latin America were exported from Mexico. That is, for every dollar exported by the region, 73 cents belonged to Mexico. Advanced manufacturing

9 6th aerospace supplier to the US
8th producer and 4th exporter globally Largest flat screen exporter in the world. 3rd largest exporter of IT 5th exporter of computers. Source: ProMéxico with information of FEMIA, GTA, AMIA y OICA.

10 FDI flows into Mexico (1999-2016)
44,199 MDD 29,032 40% of a Mexican export is AMERICAN 22,568 24,706* Mexico attracted million dollars in foreign direct investment in 2014. And is expected to reach about 25,000 million in 2015. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

11 completing a single vehicle.
Auto parts travel across the border 8 times before completing a single vehicle. x8 40% American Content Source: ProMéxico with information from BCG.

12 Montreal Wichita Queretaro

13 Mexican companies in the U.S.
Mexican companies investing and creating jobs across the U.S. Mexican companies in the U.S. (density) More than $40 USD Billion in FDI in the last 5 years Operate more than 6,500 businesses in the U.S. Creating more than 122,000 jobs Source: SE-Washington with information from iMap FDI figure from Bilateral FDI Statistics 2014 by the UNCTAD, using a historical-cost basis 2012

14 takeaways North America competes globally as a region, not as individual nations NAFTA allowed companies to become more competitive by integrating supply chains NAFTA needs to be modernized to address the current economic and business environment It is more than an fta, it is an institution that provides certainty and legal framework


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