INTERNACIONALIZ ACI - networkedlaw.com · • US is the largest foreign investor in Mexico: ... 2014 INTERNACIONALIZ ACIÏ N ... UNCTAD Q3. 2014 figures. 15,310 22 INTERNACIONALIZ

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2INTERNACIONALIZACIÓN | 2014

INTERNACIONALIZACIÓN | 2014

1. Designed and Manufactured in Mexico

2. Mexico Means...

3. Resources

4. A Strong Economy

5. Promexico and Internationalization

6. FINAL THOUGHTS



DESIGNED AND

MANUFACTURED IN

MEXICO



Mexico is a world leader in the

development and production of anti-

venom.

An inexpensive process for producing

sponge iron was developed in Mexico during

WWII

The first contraceptive pill was

developed by

a Mexican scientist

Tremec Transmission (Corvette and Mustang)



5

Minessotta Light Train (Bombadier Mexico)

787 Dreamliner Interior (Zodiac Mexico)



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∙ 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 world within a country.

∙ a reliable and attractive destination for investment.

∙ increasing its productivity through its structural reforms.

Means:

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MEXICO AND THE WORLD





Mexico is far from the "Ring of Fire“ described by Bill Gross in Pacific Investment Management

(PIMCO)

PUBLIC DEBT OF SELECTED

COUNTRIES (% PIB)FISCAL BALANCE(% DEL PIB)

EXTERNAL COMPARATIVE

8



Population Pyramid, 2005

(millions)Population Pyramid, 2030

(millions)

Men Women Men Women

9

Source: Oxford Economics, Creating Jobs in a Global Economy; INEGI, 2011; Population

Projections for Mexico 2005-2050, CONAPO.

OUR DEMOGRAPHICS FAVOURS US

• 112 million people with 29 years of average age

• Mexico is experiencing it´s Biggest job growth

between 2010 and 2030.

• In 2030, Mexico will reach its lowest dependency

ratio Level (children and elderly / EAP).

• According to forecasts, there will be 60 million

people at their working age in 2030.

Population Pyramid, 2005

(millions)Population Pyramid, 2030

(millions)

Men Women Men Women



1. U.S.A.

2. China

3. Japan

4. Germany

5. France

6. UK

7. Brazil

8. Russian Fed.

9. Italy

10. India

11. Canada

11. Australia

12. Spain

13. Korea

14. Mexico

15. Turkey

16. Netherlands

17. Indonesia

18. Saudi Arabia

19. Switzerland

20. Argentina

2013 FIGURES IN BILLIONS OF DOLLARS

Source: International Monetary Fund

MEXICAN ECONOMY

(Mexico $ 250 Billion in 1995)

16. 80

9.24

4.90

3.63

2.73

2.52

2.24

2.09

2.07

1.87

1.82

1.56

1.35

1.30

1.26

.82

.80

.86

.74

.65

.61

10

11

• Mexico is the third largest trading partner of the US and its second largest market.

• Mexico and the US trade more than $ 1.3 billion a day ($ 486 billion in 2013). ALMOST A MILLION PER

MINUTE

• Mexican companies employs more than 50000 Workers in the U.S.

• they are Majority Shareholders and operate 124 production plants in The U.S.: Bimbo, Cemex, Vitro, Lala,

Gruma, Sigma, AHMSA, Alfa, Katcon (45 million), Tapia, among others.

• Since 1994, Mexico has attracted $ 313 billion in foreign direct investment, 45.6% in the manufacturing industry.

• US is the largest foreign investor in Mexico: about $90 billion ($ 15 in 1993)

• Mexico's investment in the world is reaching $ 30 billion;

- $ 12.6 b. in the U.S.

- $ 7 b. in Colombia

- $ 4 b. in Chile

- $ 2.3 b. in Panama, among others.

Other Assets



MAIN COMPETITIVE ADVANTAGES OF MEXICO ARE:

– macroeconomic environment, stability and strong financial market.

– Open economy with international Trade and Investment Commitments.

– production and technical diversity.

– growing middle class and the domestic market.

– Demographic dividend.

– Human capital, education, science, R & D.

– Quality workforce and an improving Human Development Index.

– Strengthening the rule of law, copyright and property rights.

– Infrastructure improvement (5% of GDP Investments).

– Democratic system and political stability. INTERNACIONALIZACIÓN | 2014


COMPARATIVE ADVANTAGES

12

MEXICO

Means

RESOURCES

13



Mexico is the main tourist destination in Latin

America and tenth in the world.

25.8 million tourists from all over the world

visited Mexico in 2014.

The highest number recorded to date

an increase of 19.3% compared to 2013. Likewise, the Domestic flights increased 9.0%

TOURISM

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110,000 landmarks

30,000 archaeological sites

37 World Heritage sites by UNESCO (more than

any other country in the Americas and 6th place

worldwide)

Gastronomy recognized as Intangible World

Heritage (one of the 5 best cuisines)

About 20% of American expats living in

Mexico (1 million)

HISTORY AND

CULTURE

15



Tijuana

1,864 miles from end to end

Moscow

Barcelona

Same distance between

1,864 miles from end to end

Tijuana

Mérida

16

17

Mexico Means A Strong

Economy



18

Mexico: Leading exporter in Latin America

Mexico

Latin America

2x

Advanced manufactures



Tijuana

19

1993 2013(Units) (Units)

13,900,000 16,355,000

Canada

2,000,000

Mexico

1,000,000

USA

10,900,000

Source: ProMéxico with information of Automotive Associations of selected countries.

Canada

2,380,000

Mexico

2,930,000

USA

11,045,000

Vehicle production in NAFTA

(1993-2013)



Main products exported from Mexico*

20Source: ProMéxico with information of Global Trade Atlas 2013.

* Share based on the total exports in percentage.

Light vehicles

32.4 bn USD

8.5%

Parts and accesories

for vehicles

20.5 bn USD

5.4%

Telephones and

communication equipment

18 bn USD

4.7%

Transportation

vehicles

17.6 bn USD

4.6%

Computers and

components

17.4 bn USD

4.6%

Television

receiver

16.7 bn USD

4.4%

Electrical

conductors

10.2 bn USD

2.7%

Unwrought semi-

manufactured gold

5.8 bn USD

1.5%

Tractors

5.6 bn USD

1.5%

Refrigerators and

cold equipment

4.4 bn USD

1.2%

Surgical and medical

instruments

5.1 bn USD

1.3%

Seats and their

components

5.3 bn USD

1.4%



Tijuana

21

FDI flows into Mexico (1999-2014*)MUSD

Record-high39,200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

29,000**

24,000**

Source: ProMéxico,with information of the Ministry of Economy. UNCTAD *Q3. 2014 figures.

15,310*



Tijuana

Mexico’s FDI outflows(Million dollars)

22Source: ProMéxico with information of UNCTAD.

25,597

12,937

MDD



23

We are committed to free tradeOur FTAs give privileged access to 1.2 billion consumers.

Brazil

8China 19United States

20Colombia

42

45 countries

with FTA’s

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.

Mexico has 27

RIPPA**Reciprocal Investment

Promotion and Protection

Agreements



24

• Mexico has signed 27 of these agreements, providing legal certainty:

Country Year Country Year Country YearSwitzerland 1996 Austria 2001 Panama 2006

Argentina 1998 Sweden 2001 Iceland 2006

Netherlands 1999 Korea 2002 Australia 2007

France 2000 Italy 2002 Trinidad & Tobago 2007

United Kingdom 2000 Uruguay 2002 Spain 2008

Portugal 2000 Greece 2002 India 2008

Denmark 2000 Cuba 2002 Slovakia 2009

Finland 2000 Belgium 2003 China 2009

Germany 2001 Czech Rep. 2004 Belarus 2009

Agreements on Reciprocal Promotion and Protection of

Investments (RIPPA)



25

A country with great infrastructure

Mexico:

• 64 international airports.

• 63 border crossing points

• 68 ports for natural and domestic traffic.

• 16,777 miles of railroads.

• 231,000 miles of roads

Source: ProMéxico, with information of CIA Factbook and SCT.

Lázaro

Cárdenas

Manzanillo

Veracruz

Tampico

Altamira

Guanajuato

Monterrey

Guadalajara

SLP



Foreign Trade Compass

26

NAFTA

TPP EU-Mexico

FTA

Pacific Alliance



United States 1,830,580

CountryNo. Patents granted

1

Japan 1,782,1172

China 1,011,9763

Korea 828,5384

European Union 587,0865

Russia 274,4996

Canada 173,5677

Germany 158,4038

Australia 131,8679

France 115,16110

Mexico 93,88811

Italy 82,59412

United Kingdom 74,71113

India 69,82614

Singapore 60,71315

Patents granted 2003-2012

27

Source: ProMéxico with information of the World Intellectual Property

Organization (WIPO) Statistics.



Mexico’s global leadership

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IT

• 3rd largest exporter

in the world.

AUTOMOTIVE AND

AUTO PARTS

• 8th producer and 4th

exporter globally of new

light vehicles in the world.

ELECTRIC-

ELECTRONIC

• Leading flat

television screen

exporter in the world.

AEROSPACE

• Mexico is the 6th

supplier to the

American aerospace

industry.

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

380 billions in exports in 2013

50% in medium and high-tech manufactures



Mexico is a leader in key sectors

29

Mexico is the main exporter of medical

devices in Latin America.

Mexico is the largest

exporter of two-door

refrigerators with

freezer.

5th

exporter of

computers.

10th

exporter of

cellphones.

380 billions in exports in 201350% in medium and hightech

manufactures

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

4th

auto parts

exporter

30

INTERNATIONALIZATION

ProMéxico is the Institution of the Federal Government in charge of promoting Mexico´s role in the international economy:

Objectives

Internationalization of Mexican

Companies Exports Promotion

Investment

Promotion

Targets Mexico´s global insertion

through the internationalization of

Mexican companies.

Supports the exporting process of

the companies established in our

country.

Coordinates actions aiming to

attract foreign investment.

MISSION



32

Sectors of focus in ProMéxico

• Plastic

• Chemical

• Electric

• Electronic

• Metal-

mechanic

___________

- Industrial

inputs

• Information

Technology

• Communications

• Art

• Publishing

_______________

- Photon

- Contents

- KPO

- Animation

- E-learning

• Furniture

• Decoration

Items

• Jewelry

• Textile /

Fabric

• Apparel

• Footwear

• Leather

goods

• Toys

• Hardware

____________

- Smart cities

- Second

Homes

- Architecture

• Automotive

• Auto parts

• Aerospace

___________

- Shipyards

- Dry Docks

facility

• Renewable

energy

• Green

Technologies

• Water

Management

• Carbon credits

• Petrochemistry

• Gas

• Shell gas

____________

• Pharmaceutical

• Export

Healthcare

• Medical Devices

• Health

infrastructure

• Medical

Tourism

• Biotechnology

• Drugs and

vaccines

• Clinical trials

____________

• 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

Agrifood Health Energy and

environmental

technologies

Transport and

heavy

manufacturin

g

Design

industries

IT, creative

and content

industries

Intermediat

e industries

Infrastructure

• Construction

• Routes

• Maritime /

Naval

• Construction

materials

• Mining

• Railway

____________

- National

Infrastructure

Plan

- Urban

Development

Cities (DUIS)

33

Promexico means to promote and support the internationalization of Mexican companies, or their subsidiaries, so that they can have a productive or commercial arm oversees, through which to offer their products and services in a foreign market.

MISSION: To contribute to the national economic development by promoting the benefits of internationalization, identifying, monitoring and providing support to Mexican companies interested in operating abroad.

VISION: To support Mexican companies in their internationalization, identifying projects and providing services to government support, counseling, linkage and expansion into new markets.



INTERNACIONALIZATION



Internationalized Mexican companies

34Source: ProMéxico.



Supports and services for internationalization

35

Consulting

Specialized studies

Business travel

Specialized information

Advertising

Meetings management

Assessment and guidance programs

Advice on disputes and support operations in conciliation

Government and institutional support

Initial assessment on intellectual property

Contacts network

Identification and diagnosis of the viability of the company’s project

Supports

Services




OUR NATIONAL NETWORK

Tijuana

Hermosillo

Torreón

Culiacán

Durango

Guadalajara

Zacatecas

Aguascalientes

MoreliaTecamachalco

Toluca

Cuernavaca

Puebla

Distrito Federal (Oficinas Centrales)

Oaxaca Veracruz Campeche

Juárez Chihuahua Saltillo

Monterrey

SLP

Silao

Querétaro

Pachuca

Mérida

Tlaxcala

Cancún

Tuxtla

Gutiérrez

ProMéxico bureaus

in the country.2936



OUR GLOBAL NETWORK

3748 ProMéxico Offices in 31 countries

Europe, Middle East 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

Beijing

Doha

Dubái

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



38

Assistance

Services


Rent of physical spaces

International certification

Consulting

Design

Shipment of samples

Specialized studies

Trade shows

Appointments with buyers

Promotional events

Business travel

Trade shows

Appointments with buyers

Promotion

Advertising in Negocios Magazine

Specialized information

Specialized courses in International

businessMade in México B2B

Assistance & Services



39

Internationalization PROJECTS CONFIRMED BY OUR TRADE

COMISSIONS

2013 | 2014

689

7

5 5 54 4

3 3 32 2 2 2

1 1 1 1 1 1 1 1 1 1 1

Bog

otá

Sao

Pa

ulo

Bue

nos A

ires

Los A

ng

ele

s

Dalla

s

Mia

mi

Gua

tem

ala

San

tiago

de

…

Mu

mb

ai

Housto

n

To

ronto

Suiz

a

Fra

nkfu

rt

Esto

co

lmo

Wa

sh

ing

ton

To

kio

Sin

ga

pu

r

Paris

Nu

eva

York

Ma

drid

Lim

a

Hong

Kon

g

Hola

nd

a

Chic

ago

Beijin

g

11%

$ 693MILLION

Dollars

Of Economic ImpactProjects

CONFIRMED

LATAM NAFTA ASIA

14%

EUROPE

32%43%



40

68

6%11%

$ 693MILLION

DOLLARSPROJECTS

CONFIRMED ECONOMIC IMPACT

CENTRO

16%

NORESTECENTRO OCC SURESTESUR NOROESTE

54.5%11% 1.5%

24

6 6 53 3 2 2 2 2 2 2 2 1 1 1 1 1 1

D.F.

Gu

adalajara

Edo

. México

Nu

evo Leó

n

Son

ora

Qu

eretaro

Sinalo

a

D.F.…

Mich

oacán

Hid

algo

Oaxaca

Veracru

z

Pu

ebla

Du

rango

Torreó

n

Agu

ascalien…

Yucatán

Mo

relos

San Lu

is…

INTERNATIONALIZATION PROJECTS CONFIRMED BY OUR

NATIONAL OFFICES

2013 | 2014



PERFORMANCE INDICATORS OF THE EXECUTIVE

DIRECTOR OF INTERNATIONAL PROJECTS

1118

607

343

68

Contacts Assisted at headquarters by Team Internationalization.

Mexican companies of which we have recorded an approach for the

Internationalization area in ProMéxico.

Number of Internationalization projects registered until December 2014 (CRM +

Bitácora)

Number of Internationalization projects confirmed during 2013 and 2014

0

50

100

150

200

250

300

350

2011 2012 2013 2014

Proyectos en cartera

37

215

343

2 36

Exponential

growth

Total of 68 projects

validated

145

42

SUMMARY OF PORTFOLIO Evolution

(CRM + BITÁCORA)

Projects in the portafolio



FRANCHISING

LICENSING

GOVERNMENT PROCUREMENT

INTERNATIONAL TENDERS AND BIDS

MERGERS AND ACQUISITIONS

NEW MODALITIES OF IINTERNATIONALIZATION

SUPPORT

43



www.promexico.gob.mx

[email protected]

@ProMexicoTW

+52 (55) 54 47 7000

Camino a Santa Teresa 1679,

Col. Jardines del Pedregal

CP 01900, México, D.F.

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Documents

INTERNACIONALIZ ACI - networkedlaw.com · • US is the largest foreign investor in Mexico: ... 2014 INTERNACIONALIZ ACIÏ N ... UNCTAD *Q3. 2014 figures. 15,310* 22 INTERNACIONALIZ

INTERNACIONALIZ ACI - networkedlaw.com · • US is the largest foreign investor in Mexico: ... 2014 INTERNACIONALIZ ACIÏ N ... UNCTAD Q3. 2014 figures. 15,310 22 INTERNACIONALIZ