1. An opportunity for business
August 26th, 2015
PALABRAS DE FRANCISCO N. GONZÁLEZ DÍAZ, DIRECTOR GENERAL DE PROMÉXICO, DURANTE EL DESAYUNO CON LOS REPRESENTANTES PERMANENTES DE LOS ESTADOS MIEMBROS DE LA OEA
Lugar, fecha y hora: OAS Main Building, 17th Street and Constitution Ave., N.W., Washington, D.C , miércoles 26 de agosto de 2015, 9:30-10:30 horas.
Orden de participación:
Francisco N. González, Director General de ProMéxico.
Tipo de público: 34 Representantes Permanentes de Estados Miembros de la OEA, todos con rango de Embajador.
Medios: No.
Modalidad de la presentación: Mesa redonda.
Duración de la participación: 20 minutos + 10 minutos de sesión de Q&A.
Distinguished Permanent Representatives of the Organization of American States.
Ambassadors and honorable members of the diplomatic corp.   
Ladies and gentlemen:
Good morning to all of you!  
It is a great honor and pleasure for me to address such a distinguished crowd in the magnificient Main Building of the world’s oldest regional international organization.
This morning I would like, first and foremost, to congratulate you and the Member States of the OAS on renewing your commitment to the advancement of the Americas under the leadership of His Excellency Luis Almagro, as I am sure that your guidance, strategic vision and fullfillment of mandates will have a sound effect on our countries for the years to come.
I would like also to express the full intention of ProMéxico to be an ally to the OAS. Out of the four pillars of your Organization that interconnect with and streghten one another, ProMéxico is focused on being an agent for development.
Precisely, we firmly believe in the value of economic development as a tool for the advancement of our countries. At ProMéxico, our mission is to be the trade agent of the Mexican Government by the means of fostering investment, increasing exports and enabling mexican companies to do business abroad.
Our countries know that the path to prosperity is a shared one, and this is why I am thrilled to address you here this morning, to jointly find strategies to innovate our long standing economic and cultural ties, take advantages of the new opportunities that lay ahead of us, and pave the way for a stronger economic environment for the Americas.

2. Mexico will become the 8th largest economy
2050
China US
India
Indonesia
Japan
Germany
Brazil
Mexico UK
France
105,916
70,913
63,842
15,432
11,367
11,334
10,334
9,826
9,812
9,671
Yesterday through the example of the automotive industry, we got a glimpse on how Mexico is rising as one of the largest economies in the years to come.
According to a recent forecast published by Bloomberg and The Economist, Mexico will be among the 8th largest economies in 2050.
Economy moves up rankings
Economy moves down rankings
Economy remains at rankings
Source: ProMéxico with information from Bloomberg and The Economist.

3. Mexico: a rising global star
In “The Shifting Economics of Global Manufacturing”, published by BCG, states that Mexico’s competitiveness improved substantially over the past decade compared with all the other economies in our index.
Productivity and currency rates have remained stable or improved relative to the other countries
It has very competitive energy costs, as well.
For all these reasons, Mexico is classified as a rising global star.
Source: ProMéxico, with information of BCG.

4. Mexico leads bond benchmarks
Indonesia
Turkey
South Africa
Brazil
Russia
Colombia
18.9
33.3 46
45.3
60.5
96.9
167 85 92
117 73
237
354
Exchange rate
(%)
10-year bond
USD (pb)
Just 3 sovereign nations in recent history have issued 100-year bonds: China, in 1996; the Philippines, in 1997; and Mexico in 2010, 2014 and 2015.
Moody's upgraded Mexico's sovereign rating to A3 from Baa1 with a stable outlook, in February, 2014.
Until then, Chile was the only country in Latin America with an A rating.
Moody's said it expects the economic reforms approved in Mexico last year "will strengthen the country's potential growth prospects and fiscal fundamentals."
Brazil, by comparison, has the second-lowest investment grade level according to the three ratings agencies.
Just 3 sovereign nations in recent history have issued 100-year bonds: China, in 1996; the Philippines, in 1997; and Mexico.
Mexico have issued 100-year bonds three times: in 2010, 2014 and 2015.
Source: ProMéxico with information from Bloomberg. *Figures to March, 2015, Data from JPMorgan Chase & Co reported by the IMF in the Global Financial Stability Report
(april 2015), p. 14

5. United States China U.K. Canada Germany Brazil Japan France Mexico
10 main FDI destinations
United States
China
U.K.
Canada
Germany
Brazil
Japan
A.T. Kearney published its FDI Confidence Index, in which Mexico ranked in the 9th place.
Mexico advanced three positions, in comparison to 2014.
France
Mexico
Australia
Source: ProMéxico, with information from A.T. Kearney.

6. Mexico: 2nd largest investor in Latin America
(FDI flows in Latin America and the Caribbean ,
in millions of dollars)
Brazil
Mexico
46,345
89,226
Chile
Venezuela
96,076
Chile and Mexico are ranked first and second in FDI amounts in Latin America and the Caribbean during the period of
They represent 30% and 27%, respectively, of the total amount recorded in the region.
13,162
Other
Colombia
Argentina
33,985
12,768
33,184
Source: ProMéxico with data from UN-ECLAC based on official data and estimates to May 2015.

7. We are committed to free trade
Our FTAs give privileged access to 1.2 billion consumers.
FTAs with 45 countries
TPP
6 economic complementation agreements
Mexico has FTAs with 45 countries, which give us a privileged access to 1.2 billion consumers.
Our country has also 6 economic complementation agreements:
ALADI-ACE 6: Mexico-Argentina.
ALADI-ACE 5: Mexico-Uruguay.
ACE 51: Mexico-Cuba.
ACE 53: Mexico-Brazil.
ACE 55: Mexico-Mercosur.
And ACE 66: Mexico-Bolivia.
With the TPP, Mexico will increase its presence in Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam.
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.

8. International trade represents 63% of our GDP
Customs raise 66% of the VAT in the country.
Close to 45,000 foreign trade operations in Mexico per year.
Customs raise 66% of the VAT in the country.
Close to 45,000 foreign trade operations in Mexico per year.
28 thousand heavy-duty vehicles involved in foreign trade of goods.
Over 30 stakeholders: Government, exporters, importers, carriers, etc.
28 thousand heavy-duty vehicles involved in foreign trade of goods.
Over 30 stakeholders: Government, exporters, importers, carriers, etc.
Source: ProMéxico with information from the General Administration of Customs and the Mexican Ministry of Economy.

9. Pacific Alliance
In 2012, Mexico consolidated its participation in the Pacific Alliance.
The main benefits are to promote the accumulation of origin in an intraregional level and reduce administrative costs incurred by companies to take advantage of tariff preferences established in those countries.
We concluded negotiations in order to eliminate 100% of tariffs. 92% immediately and 8% in the following years.
The Pacific Alliance allow us to have a sectorial coordination in those industries where we have high levels of regional integration, such as automotive, aerospace, auto parts and electric-electronics.
By this RTA, we will strengthen our global value chains, contributing to the economic growth in Latin America, but also around the globe.

10. Logistics Platform of the Pacific Alliance
Arrival to Guadalajara:
10th of February
Arrival to HK:
12th of February
Arrival to Manzanillo:
9th of February
The River Trade Asia-Latin America projects to channel the exports of perishables to Asia.
Guadalajara International Airport has a maximum annual capacity of 350,000 tons; It has a cold chamber and phytosanitary inspection center for perishable products.
Asia has a frequency of 2 flights per week on the Seoul-Guadalajara route; and 5 in the Hong Kong-Guadalajara route. In these routes, high-tech products are imported and agro-industrial products are exported.
The flights carry a lower export volume of cargo compared to the imports volume. For example, from January to October 2014, a volume of 11,405 tonnes was exported compared to imported tons.
As a means of taking advantage of the installed capacity, the River Trade Asia-Latin America project is set to channel Latin American perishable exports to Asia through the Manzanillo-Guadalajara route.
This route is an alternative to hubs in Los Angeles and Miami; its travel time will be reduced (from 5-8 days) and will result in increased shelf life.
Recently, a successful pilot test was conducted with a cargo of 9.6 tons of fresh berries that arrived by sea on January 24 from Valparaiso, Chile, to Manzanillo, Mexico, where it arrived on February 9. It was then transported by land to Guadalajara, where it flew on the 11th of February to Hong Kong for final arrival in Singapore on the 13th of February. 24
Jan 13
Feb
Departure from
Valparaíso
Arrival to Singapore
The transfer time was reduced (between 5 to 8 days) and shelf life was increased.

11. Mexico: A leading exporter of high-tech manufactures in Latin America
Other Latin American
Countries
26.5%
1 out of every 3 exports in Latin America have a Mexican origin
Mexico is the 15th largest exporter in the world.
And it is the largest exporter in Latin America.
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.
Mexico
73.5%
Advanced manufactures
Source: ProMéxico with information from the GTA.

12. A sophisticated economy
Exports of Medium and high technology manufactures as percentage of the GDP (2014)* 1
South Korea
25.5% 2
Germany
24.2% 3
Mexico
19.4%
Mexico has started a process of deep transformation, from a country that used to export raw materials and simple manufactures, to one of the most competitive high-end producers.
Our country is no longer a producer of low-end consumer goods, but a manufacturer of increasingly complex products that require a high level of skills, especially engineering and design skills.
Mexico has achieved a great reputation in recent years for its expertise in advanced manufacturing.
Today it is the third largest exporter among the G20 nations for medium and high technology manufactures, as a percentage of the GDP; only behind Germany and South Korea and ahead of countries like China or France. 4
China
13.1% 5
France
11.6%
Source: ProMéxico with information from IHS Connect – Global Insight. / * Only G20 nations.

13. Key Indicators for Mexico (2014)
7th
100%
of the top leading OEM’s are located in Mexico.
World´s largest vehicle producer in the world
(3.39 million units).
More than 300 Tier 1 suppliers established in Mexico.
7th
Worldwide producer
of light vehicles
(3.22 millions of units).
Occupied workers: 66,017.
The automotive industry in Mexico accounts for:
The automotive industry has become an engine of our economic growth
Let me share with you some numbers:
The automotive industry contributes over 3%.
Today Mexico is the 7th largest producer worldwide (in 2012, we were the 9th).
And we are the fourth largest exporter of vehicles globally (in 2012, we were the 6th).
100% of the leading vehicle manufacturers (OEMs) and more than 300 Tier 1 suppliers from the manufacturing industry have plants in Mexico.
The world’s leading automobile builders have set up assembly plants in Mexico, because of the quality they are able to achieve in Mexico.
8 out of every 10 vehicles produced in Mexico is exported to more than 100 countries, with North America and Latin America as our main markets.
In fact, the Mexican automotive industry is the leading supplier to the United States .
We export to the most demanding countries in the world, such as Germany, the United States and Japan, where Mexican plants have been recognized as examples of quality and commitment to continuous improvement processes.
3% of the National GDP.
17% of the manufacturing GDP.
20% of the FDI.
32% of Mexican total exports.
4th
Exporter of light vehicles
(2.64 millions of units).
Source: ProMéxico with information of AMIA, OICA, Ministry of Economy, INEGI, ANPACT and the GTA.

14. Sectors to promote in Latin America
Priority index
Renewable energies
Biotechnology
Clean technologies
ICT
Nanotechnology
ECLAC has identified the sectors with major potential for SMEs in Latin America.
Most of them produce high technological content, which highlights the need of linking our SMEs in the global value chains and, in particular, to more sophisticated processes.
Infrastructure for
transportation
New materials
Broadband
infrastructure
Source: ProMéxico, with information of the survey conducted by the Economic commission for Latin America and the Caribbean, ECLAC.

15. ProMéxico’s activities in LATAM (Q2 2015)
Mexico
Caribbean
4 State Visits
1 Mission
Dom. Rep./Haiti
7 Missions
1 Mission
1 Agenda
Panama
1 Seminar
1 State Visit.
1 Multilateral reunion
1 Fair
2 Pacific Alliance events
2 Summits
1 Summit
Paraguay
Costa Rica
Nicaragua
1 Agenda
2 Missions
1 Mission
1 Secretary of Foreign Relations Agenda
1 Summit
1 Seminar
Guatemala
Pacific Alliance
Brazil
1 Mission
5 Missions
1 Mission
3 Fairs
2 Seminars
El Salvador
4 Pacific Alliance events
Argentina
1 Mission
1 Summit
1 Event
1 Mission

16. Relevant events in Latin America 2015
Pacific Alliance
Month of the Pacific
Alliance
(Milan,
October 2015)
Lab4+
(Puebla,
October 5/6th)
Women Leaders of the Pacific Alliance
(Mexico City, October 23th)
IDB
International fairs
LAC Flavors
(Paraguay,
September 15-17th)
Outsource LAC
(Jalisco,
November 11-13th)
Ferretexpo
(Guatemala,
October 15-18th)
FIHAV
(Cuba,
November 2-7th)

17. from 27 countries of the Caribbean Basin.
Cancun Forum 2015
300 70
500
businesspeople
1,500
business meetings
Mexican
exporting
firms
The Cancun Forum is expected to become the most important Business Roundtable between Mexico and the Caribbean Basin.
The event seeks to promote the development of exports from Mexican SMEs of the agrifood, design industry and manufacturing and supplies sectors.
buyers
from 27 countries of the Caribbean Basin.
From the 9th to the 11th of September, 2015
Iberostar Hotel, Cancun, Quintana Roo.

18. China-LAC Business Summit
China-LAC is a mechanism of promotion that seeks to enhance the economic cooperation between China and Latin America and the Caribbean.
Mexico will be the host country of the 9th edition.
October 13-14th, 2015
Palacio de la Cultura y la Comunicación.
Guadalajara, Jalisco.

19. Mexico: venue of the X Americas Competitiveness forum
The Americas Competitiveness Forum is the only annual event in the Americas that brings together more than a thousand representatives from governments, the private sector, academia and international organizations to find joint solutions to common challenges and help foster greater economic competitiveness in the region.
During the forum, actors are able to find multiple spaces to interact, share experiences, and forge greater collaboration. There are Magisterial Conferences, Plenaries, spaces for bilateral meetings, entertainment events and lounges.
Guatemala is the venue for 2015 and Mexico will be the venue for 2016.
At ProMéxico, we are currently working closely with Mexican SME’s in order to increase internationalization opportunities.
We believe that the RIAC, under the leadership of the OAS-SEDI, is a great example of how the sharing of knowledge and best practices can have a positive impact on the overall competitiveness in the region.
Mexico will have the pro-tempore presidency of the community next year.

20. Our network in Latin America
CEAP

21.
@ProMexico
Ladies and gentlemen:
More than a hundred years have passed since this building was built, and along those years, through its rooms and doors remain the footprints of some of the greatest statesmen the Americas have seen.
I would like to honor this great moment in history by remembering the first keyword that had its place in this building, and that was the word “union”.
Today, I want to work closely with the OAS to continue that legacy, so that we ensure a stronger union between our countries on the basis of economic development and the four pillars of the OAS.
Please count on ProMéxico to be your ally to foster trade and investment, and become a tool to boost competitiveness in our region.
Along your renewed mandate, let us walk shoulder by shoulder and pursue greater goals together.
Thank you very much!