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California –Mexico trade initiative April 1, 2014

California –Mexico trade initiative April 1, 2014. ProMéxico. Activities: FDI Exports promotion Mexican investment abroad. Fdi in mexico ( Sectors ) (2000-2013). Source : Ministry of Economy. Usa as trade partner. Mexico’s Number 1 pArtner as: exports destination Imports

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California –Mexico trade initiative April 1, 2014

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  1. California –Mexico trade initiative April 1, 2014

  2. ProMéxico Activities: • FDI • Exports promotion • Mexican investment abroad

  3. Fdi in mexico (Sectors)(2000-2013) Source: Ministry of Economy

  4. Usa as tradepartner Mexico’s Number 1 pArtner as: exports destination Imports Total trade partner Potential Sectors: Aerospace Automotive and auto parts Medical Devices IT’s & BPO’s Energy Chemical

  5. Mexico as part of northamerica • México has: • Nafta • More than 50 bordercrossingpoints • Value of NAFTA market= 18 bnusd 5 Source: SCT/ US Department of Transportation.

  6. A sophisticated economy • Medium Technology (MT): • Specialty Chemicals • Machinery and Equipment Appliances • Electrical Industrial Machinery • Motor Vehicles & Parts • Motorcycles & Transport Equipment • Railroads & Equipment No. Country GDP South Korea Germany Mexico China France • High Technology (HT): • Aircraft & Spacecraft • Advanced materials • Computers & Office Machinery • Communication Equipment • Medical, Precision & Optical 7.3% Canada 5.1% UnitedStates Source: ProMéxico withinformation of IHS Data – Global Insight. Data in USD Real terms, 2005, considering de G20 countries.

  7. Competitive costs for NAFTA market According to KPMG, in 2012 Mexico had an average cost advantage of 21% (over 19 industries), compared to the US. The Alix Partners Manufacturing Outsourcing Cost Index ranks Mexico as the best country (better than BRIC’s). Mexico UK TheNetherlands Canada France Italy USA Germany Australia Japan The most competitive country in terms of costs and taxes, according to Global Benchmark Report. Source: ProMéxico with information of Competitive Alternatives 2012, KPMG; Global Benchmark Report 2011, of the Danish Industry Confederation; Manufacturing Outsourcing Cost Index 2010, Alix Partners.

  8. Labor force • Young, trained and talented population • More than 110,000 new engineer and technology professionals per year (CONACYT, 2011) • In the next 20 years, 60% of the population will be available as work force (80 million). Fuente: SelectMacroeconomicIndicators. International Monetary Fund

  9. We are leaders in keysectors AEROSPACE Mexico is the 6th supplier to the American aerospace industry. AUTOMOTIVE AND AUTOPARTS 8th producer and 4th exporter globally of new light vehicles in the world. MEDICAL DEVICES We are the main supplier to the US. ELECTRIC-ELECTRONIC Leading flat television screen exporter in the world. Source: ProMéxico withinformation of FEMIA/ GTA/ AMIA/ OICA.

  10. Business opportunities

  11. Mexico: Your best option for Reshoring • Mostly returning from China due to increase of labor and production costs • BCG estimates reshoring a value of $120 bnusd with a 20% increase for the next five years • Mexico’s advantages: • Near shore • Educated work force • Competitive manufacturing costs • Investment certainty • Medium and advance manufacturing Source: BCG.

  12. Main opportunities in the automotive global supply chain 11.8bn USD Punching and stamping 10 mainopportunities Foundry 9.9bn USD Forging 9.2bn USD Machining Injection molding 9.1bn USD Electronic assembly Die casting Cables and wires Other components Auto interiors 6.4bn USD +10 more 3.3 bn USD 2.2bn USD 2.5bn USD 2.7bn USD 3.9bn USD Source: ProMéxico with information provided by main automotive companies.

  13. Main opportunities in the electric global supply chain 1.6bn USD Metal stamping 10 mainopportunities 1.0bn USD Mechanical assembly Plastic injection molding 0.8bn USD Machining 0.7bn USD Metal fabrication Ceramic or porcelain Laminating Dielectric material Sintering Foundry 0.6bn USD 0.1bn USD 0.1bn USD 0.2bn USD 0.4bn USD 0.5bn USD Source: ProMéxico with information provided by main automotive companies.

  14. Main opportunities in the wind industry supply chain 29.3bn USD Construction Main opportunities 22.5bn USD Power generation equip. Metal fabrication 21.2bn USD Machining and equip. 16.6bn USD Plastic industry IT equip. Other sectors 13.4bn USD 53bn USD 11bn USD Source: Ministry of Energy.

  15. Main opportunities in the aerospace global supply chain Treatments Sheet metal 7 mainopportunities Machining Electronics Castings Forgings Harnesses Source: ProMéxico with information provided by main automotive companies.

  16. www.promexico.gob.mx Carlos.fuentes@promexico.gob.mx @ProMexicoTW +52 (55) 54 47 7000 Camino a Santa Teresa 1679, Col. Jardines del Pedregal CP 01900, México, D.F.

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