Market Screening for:Market Screening for:Mexico Agricultural EquipmentMexico Agricultural Equipment

Erik SmithErik SmithINB300 – International BusinessINB300 – International BusinessLynn BertschLynn BertschAugust 4, 2005August 4, 2005

Basic Need PotentialBasic Need Potential

Agriculture is a significant portion of Agriculture is a significant portion of Mexico’s exports and productionMexico’s exports and production

Farm machinery is a need for their Farm machinery is a need for their economyeconomy

(The World Factbook - Mexico, July 28, 2005, (The World Factbook - Mexico, July 28, 2005, Economy Section)Economy Section)

Import RestrictionsImport Restrictions

Due to NAFTA there are virtually no trade Due to NAFTA there are virtually no trade restrictions on importing farm machinery restrictions on importing farm machinery

Used machinery may be banned from import, Used machinery may be banned from import, especially if it is a motor vehicle (Used Equipment especially if it is a motor vehicle (Used Equipment and Goods under NAFTA, n.d., para. 1-5)and Goods under NAFTA, n.d., para. 1-5)

Price ControlsPrice Controls

Mexico does not significantly compete locally for Mexico does not significantly compete locally for agricultural machineryagricultural machinery

No price controls are set for almost any product, No price controls are set for almost any product, but especially for agricultural equipment so but especially for agricultural equipment so critical to their economycritical to their economy

(The World Factbook - Mexico, July 28, 2005, (The World Factbook - Mexico, July 28, 2005, Economy Section, para. 1)Economy Section, para. 1)

Government and Public Attitude Government and Public Attitude Towards Buying American ProductsTowards Buying American ProductsGovernmental, and public, tensions Governmental, and public, tensions focus on other agricultural issues, and focus on other agricultural issues, and not on machinery (Response to not on machinery (Response to Criticism of U.S. Agricultural Policy and Criticism of U.S. Agricultural Policy and NAFTA, December 5, 2002, para. 1)NAFTA, December 5, 2002, para. 1)

ConclusionConclusion

Significant Need for ProductSignificant Need for Product Extremely Limited Trade BarriersExtremely Limited Trade Barriers Established Market (The World Established Market (The World

Factbook - Mexico, July 28, 2005, Factbook - Mexico, July 28, 2005, Economy Section)Economy Section)

ReferencesReferences

Used Equipment and Goods under NAFTAUsed Equipment and Goods under NAFTA (n.d.). (n.d.). Retrieved on August 4, 2005 from Retrieved on August 4, 2005 from http://web.ita.doc.gov/ticwebsite/naftaweb.nsf/50http://web.ita.doc.gov/ticwebsite/naftaweb.nsf/504ca249c786e20f85256284006da7ab/4ca249c786e20f85256284006da7ab/ea62156cda30408c852566c20070b943!ea62156cda30408c852566c20070b943!OpenDocumentOpenDocument

The World FactbookThe World Factbook (Mexico, July 28, 2005). (Mexico, July 28, 2005). Retrieved on August 4, 2005 from Retrieved on August 4, 2005 from http://www.cia.gov/cia/publications/factbook/geoshttp://www.cia.gov/cia/publications/factbook/geos/mx.html/mx.html

Response to Criticism of U.S. Agricultural Policy and Response to Criticism of U.S. Agricultural Policy and NAFTANAFTA (December 5, 2002). Retrieved on August (December 5, 2002). Retrieved on August 4, 2005, from http://www.usembassy-4, 2005, from http://www.usembassy-mexico.gov/releases/ep021205realitiesNAFTA.htmexico.gov/releases/ep021205realitiesNAFTA.htmm