Your Strategic Partner 1 What is ProMxico? Mexican government - - PowerPoint PPT Presentation

Your Strategic Partner

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What is ProMéxico?

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Mexican government entity with three main objectives:

Foster Internationalization of Mexican companies Attract Foreign Investment Boost Mexican Exports

Our Network of Offices in Mexico

Tijuana Hermosillo Torreón Culiacán Durango Guadalajara Zacatecas Aguascalientes Morelia Tecamachalco Toluca Cuernavaca Puebla Distrito Federal (Oficinas Centrales) Oaxaca Veracruz Campeche Juárez Chihuahua Saltillo Monterrey SLP Silao Querétaro Pachuca Mérida Tlaxcala Cancún Tuxtla Gutiérrez

Offices of ProMéxico

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Global Network of Trade Offices

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ProMéxico offices in countries

Europe and Africa Berlin Bern Brussels Casablanca Frankfurt Istanbul The Hague London Madrid Munich Milan Moscow Paris stockholm Latin America Bogotá Buenos Aires Guatemala Havana Lima Santiago de Chile Sao Paulo Asia, Middle East and Oceania Beijing Doha Dubai Hong Kong Kuala Lumpur Melbourne New Delhi Seoul Shanghai Singapore Taipei Tokyo

Boston Chicago Dallas Detroit Houston Los Angeles Miami Montreal

North America

New York Phoenix San Francisco Seattle Toronto Vancouver Washington

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International Promotion Programas

Investment Atracttion Exports Promotion Supply based projects Demand based projects Partnership with Multinationals Aftercare International Promotion Softlanding 5 Internationalization Identification of Suppliers Supplier Development Expansion overseas

Support for US companies

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Investment Outlook

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• Macroeconomic Stability

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• Strategic Location

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• Committed to Free Trade

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• Large Presence of FDI

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• Strong Manufacturing & Competitive

Costs

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• Growing Dosmestic Market

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• Structural Reforms

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Mexico as an Investment Destination

• 1. Solid Macroeconomic Stability

1,864 mile border with the United States

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Mexico shares with the U.S. a border of more than 1,860 miles.

• 2. Strategic Location:

• 3. Open Economy Committed to Free Trade

With FTA Mexico has privileged access to 46 countries, more than 1,200 million people

With the TPP, Mexico will increase its presence in Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam.

Source: ProMéxico with information from 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.

6 economic complementation agreements

TPP

FTAs with 46 countries

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• 3. Mexico as part of NAFTA
• NAFTA market=

20.5 trillion USD.

• Not only a FTA
• Provisions for

Investment Protection and IPR.

• Mechanism for

Resolution of disputes.

Source: ProMéxico with information of SCT/ US Department of Transportation.

In addition to FTA; Mexico has BIA with 29 countries

• 4. Significant Presence of Foreign Direct Investment

• 5. Mexico is Leader in Key Manufacturing Sectors

1st exporter of

Medical Devices in LATAM

5th

Exporter of Computers

10th

Exporter of Cellphones

380 billions in exports in 2013 50% in medium and high-tech manufactures

Source: ProMéxico with information of FEMIA, GTA, AMIA and OICA.

4th

Automotive Exporter

Leading Flat Television Exporter

3rd Largest Exporter

IT in the World

Top Destination

Aerospace Manufacturing Investment

Top Destination for Engineering & Research Talent

• 5. Mexico’s a country of competitive costs

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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

4 points above China.

• 6. Growing Domestic Market

2.5 - 3% +0.1% +0. 5% +1% +0. 3% 4.4 - 4.9%

Labor Reform Telecom Reform Energy Reform Financial Reform

• 7. Structural Reforms

with significant impact in GDP & Competiveness

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.

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• 7. Most significant changes: Energy &

Telecommunications Sectors

Energy Telecommunications

• New legislation allows PEMEX to

partner with private sector firms.

• Oil Fields are now open to outside

exploration & development.

• Reforms to improve competition and

diminish concentration in sector.

• Creation o a new constitutionally

autonomous regulator

Business & Investment Opportunities

• Automotive
• Energy
• Telecommunications
• Medical devices
• Franchises
• Environmental

Infrastructure - Construction

• New technologies
• Education – Training

www.promexico.gob.mx Edmundo.gonzalez@promexico.gob.mx Head Of Houston Office