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TRIPLE GOLD SUMMER CONFERENCE. AGENDA. WHAT’S PROMEXICO HOW WE CAN ASSIST FOREIGN COMPANIES BRIEFING ON THE MEXICAN ECONOMY WHY MEXICO? LONG TERM FUNDAMENTALS MEXICO’S OUTLOOK. WHO WE ARE. Agency of the Mexican government Trade & Investment Promotion
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AGENDA • WHAT’S PROMEXICO • HOW WE CAN ASSIST FOREIGN COMPANIES • BRIEFING ON THE MEXICAN ECONOMY • WHY MEXICO? LONG TERM FUNDAMENTALS • MEXICO’S OUTLOOK
WHO WE ARE • Agency of the Mexican government • Trade & Investment Promotion • Facilitate international business in Mexico • Encourage direct investment into Mexico • Coordinate investment & trade promotion among different levels of government
STRONG PLATFORM Offices in every state of Mexico 30 trade offices around the world from the U.S. to China
HOW WE CAN HELP YOU For trade projects For doing business in Mexico • Identify suppliers • Connections with the federal & local governments and industrial associations • Match-makings • Organize business tours • Put together vendor shows • Provide legal and economic information • Identify potential partners • Find investment opportunites • Introductions and meetings with the government • Business tours to Mexico • Investment Seminars • Publications: Industrial Costs Guide
THE MEXICAN ECONOMY… …IN A GLOBAL CONTEXT IN 2008 • Twelve in the world economyMEX. GDP: $1.1 Trillion U.S. GDP: $14.3 Trillion • FDI reached $18 bn • First Latin American Exporter • Mexico: $294 Bn • Brazil: $200 Bn • Venezuela: $104 Bn
THE ECONOMY US- Mexico IP Manufacturing Production …export-oriented economy…hardly hit… but recession less painfull than others from the past
THE ECONOMY “There is light at the end of the tunnel”: Credit Suisse Manufacturing Production Inflation Conference Board Indexes
WHY MEXICO? LONG TERM FUNDAMENTALS
hshhdhwhdiqhw WHY MEXICO? Large and growing number of foreign companies in Mexico Mining companies FDI in bn
WHY MEXICO? It’s an open economy with 12 FTA with 44 countries… NAFTA: Entry into force: Jan. 1, 1994. AELC FTA:Switzerland, Liechtenstein, Norway & Island Negotiation: November 1, 2000 UE FTA: Entry into force: July 1, 2000. FTA Israel: Entry into force: July 1, 2000 FTA Bolivia: Entry into force: Jan. 1, 1995. NT FTA (North Triangle): Guatemala, Honduras & El Salvador Entry into force:Jan. 1, 2001. FTA Chile: Entry into forcer: Jan. 1,1992. FTA Nicaragua: Entry into force: July 1, 1998. FTA Colombia & Venezuela (G3): Entry into force: Jan. 1, 1995. FTA Japan 2005 FTA Costa Rica: Entry into force: Jan 1, 1995. …. a strong commitment with Free Trade
WHY MEXICO?... … because of NAFTA
WHY MEXICO? It’s become highly integrated to the US economy… Trade $366bn/year Investment +$100 bn-10y. Manufacturing = companies Labor $23 BN/year Tourism 18 m a year Trade Investment Manufacturing Labor Tourism … a more trusted and well known destination for doing business and investment
WHY MEXICO? Proximity to the U.S. • Lowertranportationcosts • Quick response • ----------------------------- • Skilled and hardworkingpeople • ------------------------------ • Inflationunder control Low Country Risk • ------------------------------ • 100+ M people • Growingmiddleclass • Young population • More creditavailable Competitive and skilled labor force Stable Economic Environment Growing Domestic Market Familiar Business Culture
MEXICO’S PERSPECTIVES Proximity to the U.S. New Economic Environment NAFTA IP Protection Competitive and skilled labor force Stable Economic Environment Growing Domestic Market … Mexico’ advantages make it a great destination for business