ProMéxico: your strategic partner. Mexico: a leading economy. Mexico s competitive sectors
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2 ProMéxico: your strategic partner Mexico: a leading economy Mexico s competitive sectors 2
3 What s ProMéxico? Entity of the Mexican government looking for: Foreign Direct investment Internationalization Exports 3
4 Our national network Tijuana Hermosillo Torreón Culiacán Durango Zacatecas Aguascalientes Guadalajara Morelia Tecamachalco Toluca Cuernavaca Distrito Federal (Oficinas Centrales) Puebla Juárez Chihuahua Saltillo Oaxaca Veracruz Campeche Tlaxcala Monterrey SLP Silao Querétaro Pachuca Mérida Cancún Tuxtla Gutiérrez ProMéxico bureaus in the country. 29 4
5 Supports and services for exporters Rent of physical spaces Specialized studies International certification Trade shows Consulting Appointments with buyers 7 Supports Design Promotional events Shipment of samples Business travel Trade shows Advertising in Negocios Magazine Appointments with buyers 5 Services Promotion Specialized information 8 Assessment and guidance programs Specialized courses in International business Made in México B2B 5
6 Supports and services for internationalization Consulting Specialized studies Supports Business travel Meetings management Specialized information Services Advertising Assessment and guidance programs Assessment and guidance programs Advice on disputes and support operations in conciliation Government and institutional support Initial assessment on intellectual property Identification and diagnosis of the viability of the company s project Contacts network 6
7 Supports and services for FDI Supports Market research to identify missing links or with minimal presence in production chains Travel grants Specialized information Specialized studies Business travel Specialized counseling in Mexico Services Programs Advertising Advice and support Government backing Single Window Facility Media advertising Advice on disputes and support operation in conciliation Contacts network Aftercare 7
8 Strategic allies Export consolidation BANCOMEXT PROMÉXICO Export Strengthening Linking Exporting viability Assistance Training Information Business creation Entrepreneur Export interest ASERCA/ BANCOMEXT/ CONACYT / IMPI / INADEM / NAFIN /PROMÉXICO ASERCA/ CONACYT / IMPI / INADEM / NAFIN / PROMÉXICO CONACYT/ IMPI / INADEM/ NAFIN 8
9 National and international Partnerships Honorary Consuls Consulates Ministry of Foreign Affairs State Governments Ministries of Economic Development Embassies Ministry of Economy 9
10 ProMéxico: your strategic partner Mexico: a leading economy Mexico s competitive sectors 10
11 is a democracy. one of the largest economies in the world. an example of macroeconomic stability. an open economy. young, talented and highly-skilled people. a leader in advanced manufacturing. the next global logistics high value added hub. a reliable and attractive destination for investment. ready to increase its productivity through its structural reforms. 11
12 Mexico is North America + + NAFTA is the largest free trade region in the world. The total population of the region is more than 474 million people. GDP in the region worth 20.5 trillion dollars. Trade between NAFTA partners accounts for more than 140 million dollars per hour. Represents more than 1/4 of the world s Gross Domestic Product (GDP) 12
13 Mexico as part of NAFTA +50 border crossings with the US. NAFTA market= 20.5 trillion USD. 16 trillion European Union. Bilateral trade with the U.S.= 2.3 million dollars per minute. 100 thousand people and 200 thousand vehicles crossing the border daily. NASCO Corridor Source: ProMéxico with information of SCT/ US Department of Transportation. 13
14 Export platform Through its network of free trade agreements, Mexico has privileged access to 46 countries (more than 1,200 million people). FTAs with 46 countries TPP 6 economic complementation agreements 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. 14
15 The Pacific Alliance Elimination of 100% of tariffs. 8% of them at a short or medium term. Elimination of visas between members. Platform for student and academic mobility. Unification of stock exchanges through the Latin American Integrated Market (MILA, in its Spanish acronym). Standardization of health and regulatory certifications. 30 observer countries. México will hold the presidency pro tempore in
16 Mexico and the TPP 36% of global GDP. 23% of world exports. The 12 countries of the TPP represent: 11% of the world s population. 28% of world imports. 16
17 Mexico will become the 8 th 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 Source: ProMéxico with information from Bloomberg and The Economist. Economy moves up rankings Economy moves down rankings Economy remains at rankings 17
18 Reforms into action Energy Telecom Competence Finance Education Political Fiscal Labor National Code of Criminal Procedure Law of Citizen Protection Transparency Source: ProMéxico with information of 18
19 Impact of reforms in GDP Forecasts of structural reforms effect on GDP Growth, (%) +1% +0. 3% % 2.5-3% +0.1% +0. 5% Natural GDP Growth Rate (2013) Labor Reform Telecom Reform Energy Reform Financial Reform New Natural GDP Growth Rate (2018) Source: ProMéxico with information of SHCP. 19
20 A country with great infrastructure Mexico: 3rd country with most airports. 58 international airports. 63 border crossings 68 ports for natural and domestic traffic. 16,740 miles of railroads. 234,360 miles of roads Manzanillo Guadalajara SLP Lázaro Cárdenas Monterrey Guanajuato Altamira Tampico Veracruz Source: ProMéxico, with information of CIA Factbook and SCT. 20
21 Most competitive total costs The Alix Partners Manufacturing Cost Index ranks Mexico as the best country, with a 25% cost advantage (better than BRIC s). The most competitive country in terms of costs and taxes, according to Global Benchmark Report. Mexico Canada Netherlands U.K. France Italy Japan Australia United States Germany According to KPMG, in 2011 Mexico had an average cost advantage of 18.7% (over 19 industries), compared to the U.S. Source: ProMéxico with information of Competitive Alternatives 2014, KPMG; Global Benchmark Report 2011 of the Confederation of Danish Industries; Manufacturing Outsourcing Cost Index 2011 and Alix Partners
22 Procedures to start a business Number of procedures to start a business NEW Canada Poland Mexico USA Chile Russia Germany Czech Republic India Brazil China Days needed to start a business Canada USA Chile Mexico Germany Russia Czech Republic India Poland China Brazil Number of procedures to obtain a building permit Source: ProMéxico with information of Doing Business, Germany Mexico Canada Chile Brazil USA Poland China Czech Republic India Russia Days needed to obtain a building permit Mexico USA Germany Czech Republic Chile Poland India Canada China Russia Brazil
23 ProMéxico: your strategic partner Mexico: a leading economy Mexico s competitive sectors 23
24 Sectors of focus in ProMéxico Agrifood Flowers and Plants Tobacco Livestock Meat and Poultry Fishing and aquaculture Fruits and vegetables Processed Foods Food Industries Beverages - Conventional - Fair Trade - Organic - Halal - Kosher Health Pharmaceutical Export Healthcare Medical Devices Health infrastructure Medical Tourism Biotechnology Drugs and vaccines Clinical trials Energy and environmental technologies Renewable energy Green Technologies Water Management Carbon credits Petrochemistry Gas Shell gas Transport and heavy manufacturing Automotive Auto parts Aerospace - Shipyards - Dry Docks facility Design industries Furniture Decoration Items Jewelry Textile / Fabric Apparel Footwear Leather goods Toys Hardware - Smart cities - Second Homes - Architecture IT, creative and content industries Information Technology Communications Art Publishing - Photon - Contents - KPO - Animation - E-learning Intermediate industries Plastic Chemical Electric Electronic Metalmechanic - Industrial inputs Infrastructure Construction Routes Maritime / Naval Construction materials Mining Railway - National Infrastructure Plan - Urban Development Cities (DUIS) 24
25 Mexico s global leadership AEROSPACE Mexico is the 6th supplier to the American aerospace industry. AUTOMOTIVE AND AUTO PARTS 8 th producer and 4 th exporter globally of new light vehicles in the world. ELECTRIC-ELECTRONIC Leading flat television screen exporter in the world. IT 3rd largest exporter in the world. MEDICAL DEVICES Mexico is the main exporter of medical devices in Latin America. 380 billions in exports in % in medium and high-tech manufactures Source: ProMéxico with information of FEMIA, GTA, AMIA y OICA. 25
26 Source: ProMéxico with information of the GTA. Leadership in the agrifood sector 1st Exporter and producer 1st Exporter 1 st Exporter 1st Exporter 3 th Exporter 4 th Exporter 3 th Exporter 2 nd Exporter of watermelon, melon and papaya 4 th Exporter of vegetables 26
27 +52 (55) Camino a Santa Teresa 1679, Col. Jardines del Pedregal CP 01900, México, D.F. 27
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