Catalytic Role of the APEC Process: Behind the Border, Beyond the Bogor Goals Raul Urteaga-Trani Minister, Trade & Investm...
Mexico’s Network of FTA’s <ul><li>12 FTA’s with more than 40 countries </li></ul>1.  Chile  2.  US and Canada, NAFTA 3.  C...
Mexico’s Global Trade Performance Since NAFTA’s Implementation Billion dollars Source: BANXICO
Mexico’s Exports have Experienced Greater Growth  than Overall World Exports… Source: Ministry of Economy with data from B...
Source:  WTO 2004 * excluding  intra-EU trade Mexico is the World’s 8 th  Largest Trading Nation Main trading nations 2003
Mexico has Diversified its Export Structure Source: Ministry of Economy with data from Banxico.  2004 Oil Manufacturing 85...
Mexico is the Second Largest Market for US goods   Fuente:  Ministry of the Economy  with data from  USDOC *  Ministry of ...
Today, Mexico is: <ul><li>The U.S. Second Largest Trading Partner, after Canada </li></ul><ul><li>A NAFTA Trade Member who...
Mexico FDI Flows. US$ 173 Billion From 1994-2005 FDI in Mexico by Sector Other Serv. 2 7.8% Finan. Serv.  23.4% Manufactur...
MEXICO PROMOTES GROWTH AND INNOVATION <ul><li>-  Automotive  - Tourism </li></ul><ul><li>- Electronics  - Commerce </li></...
Mexico’s Policies in Support of Growth and Innovation <ul><li>Providing economic, fiscal and regulatory incentives for tho...
(Enero 1999 = 100) Employment Manufacturing Plants Value Added Content AUTOMOTIVE Mexico’s Manufacturing Evolution
PUBLIC POLICY FOR COMPETITIVENESS FISCAL ENERGY FINANCIAL LABOR TRANSPARENCY INFRASTRUCTURE STRUCTURAL REFORMS EDUCATION J...
Mexico-Japan Complementarities <ul><li>Technology and Innovation </li></ul><ul><li>Manufacturing Savings </li></ul><ul><li...
Mexico-Japan Trade and Investment Complementarities JAPAN MEXICO World’s 2 nd  Largest Economy World’s 12 th  Economy   Po...
Promoting Mexico-APEC Business Partnerships <ul><li>Mexico is committed to further economic ties and opportunities with As...
Mexico: Key Aspects <ul><li>World’s 12 th  Largest Economy (2005)  </li></ul><ul><li>GDP: $775.2 billion (US$) (2005) </li...
<ul><li>It contains FTA known disciplines, in addition to bilateral cooperation mechanisms to promote economic growth. </l...
91% Fuente: Secretaría de Economía. * Para México, el 1.5% de las fracciones arancelarias se desgravarán en plazos interme...
<ul><li>Access to the Japanese Market: </li></ul><ul><li>Immediate access: green coffee, lemon, beer, avocado, tequila, ma...
MEXICO – JAPAN ECONOMIC PARTNERSHIP AGREEMENT  Total Trade 2000 - 2005 Source:  Ministry of Finance of Japan Exchange rate...
Source:  Ministry of Finance of Japan * Exchange rate:  US$1=112.83 yen.  Figures are rounded off not necessarily adding u...
Mexico’s Key Aspects… <ul><li>A Consolidated Form of Democratic Government. Three Branches of Government: Executive, Legis...
Thank you! <ul><li>Raul Urteaga Trani </li></ul><ul><li>Minister, Trade & Investment </li></ul><ul><li>Embassy of Mexico <...
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Catalytic Role Of The Apec

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  • Catalytic Role Of The Apec

    1. 1. Catalytic Role of the APEC Process: Behind the Border, Beyond the Bogor Goals Raul Urteaga-Trani Minister, Trade & Investment Mexico’s Secretary of Economy Embassy of Mexico, Tokyo, Japan March 15, 2006
    2. 2. Mexico’s Network of FTA’s <ul><li>12 FTA’s with more than 40 countries </li></ul>1. Chile 2. US and Canada, NAFTA 3. Costa Rica 4. Bolivia 5. Colombia and Venezuela, G3 6. Nicaragua 7. European Union, 25 countries 8. Israel 9. Guatemala, Honduras and El Salvador, Northern Triangle 10. Uruguay 11. EFTA, Iceland, Norway and Switzerland 12. Japan
    3. 3. Mexico’s Global Trade Performance Since NAFTA’s Implementation Billion dollars Source: BANXICO
    4. 4. Mexico’s Exports have Experienced Greater Growth than Overall World Exports… Source: Ministry of Economy with data from Banxico and WTO Merchandise Exports Index 1993=100
    5. 5. Source: WTO 2004 * excluding intra-EU trade Mexico is the World’s 8 th Largest Trading Nation Main trading nations 2003
    6. 6. Mexico has Diversified its Export Structure Source: Ministry of Economy with data from Banxico. 2004 Oil Manufacturing 85% Agriculture 3% 1982 12%
    7. 7. Mexico is the Second Largest Market for US goods Fuente: Ministry of the Economy with data from USDOC * Ministry of the Economy with data from BANXICO US exports 2004 1993
    8. 8. Today, Mexico is: <ul><li>The U.S. Second Largest Trading Partner, after Canada </li></ul><ul><li>A NAFTA Trade Member whose Trade with the U.S. and Canada has Almost Tripled since 1994 </li></ul><ul><li>Mexico’s Trade Leads Latin America with 44% Share of the Region’s Total Exports and 49% of its Total Imports </li></ul><ul><li>The First Country in the Region with an FTA with Japan </li></ul><ul><li>Asia-Pacific is Mexico’s Priority in its Trade and Investment Diversification Strategy </li></ul>
    9. 9. Mexico FDI Flows. US$ 173 Billion From 1994-2005 FDI in Mexico by Sector Other Serv. 2 7.8% Finan. Serv. 23.4% Manufacturing 49.3% Agriculture and Infrastructure 8.5% Commerce 11.0% 2 Social and communal services: hotels and restaurants, professional, technical and personal. 1 Agricultural, Mining, Constructing, Electricity, Transp. and Communic, and Water. FDI in Mexico by Country Source: Ministry of Economy . Notified investment to the Registro Nacional de Inversiones Extranjeras (RNIE) in September 30*, 2000, plus maquiladoras’ fix asset imports. USA 62.5% Others 7.4% Japan 2.3% Germany 2.6% Spain 9.4% Canada 3.3% Netherlands 7.6% UK 3.4%
    10. 10. MEXICO PROMOTES GROWTH AND INNOVATION <ul><li>- Automotive - Tourism </li></ul><ul><li>- Electronics - Commerce </li></ul><ul><li>- Software, IT - Construction </li></ul><ul><li>- Aerospace - Maquiladoras </li></ul><ul><li>- Textile - Chemical </li></ul><ul><li>- Agriculture - Shoe and Leather </li></ul>
    11. 11. Mexico’s Policies in Support of Growth and Innovation <ul><li>Providing economic, fiscal and regulatory incentives for thousands of suppliers to locate in Mexico </li></ul><ul><li>Supporting the development of local innovation, research and development through university/business/local government partnerships </li></ul><ul><li>Significantly increase investments in physical and social infrastructure </li></ul>
    12. 12. (Enero 1999 = 100) Employment Manufacturing Plants Value Added Content AUTOMOTIVE Mexico’s Manufacturing Evolution
    13. 13. PUBLIC POLICY FOR COMPETITIVENESS FISCAL ENERGY FINANCIAL LABOR TRANSPARENCY INFRASTRUCTURE STRUCTURAL REFORMS EDUCATION JUDICIAL SYSTEM PENSION SYSTEM GOVERNANCE
    14. 14. Mexico-Japan Complementarities <ul><li>Technology and Innovation </li></ul><ul><li>Manufacturing Savings </li></ul><ul><li>Market Access </li></ul><ul><li>Intra-Trade Growth, Particularly in Automotive and Electronics </li></ul><ul><li>Transportation Logistics </li></ul><ul><li>Global Security Considerations </li></ul><ul><li>Investment Protection, including IPR </li></ul>
    15. 15. Mexico-Japan Trade and Investment Complementarities JAPAN MEXICO World’s 2 nd Largest Economy World’s 12 th Economy Population Age Average of 42 years Highly Educated Labor Force Población con edad promedio de 27 años Abundance on Young and Capable Workers High Saving Rates Economy in Need of Maintaining Growing Levels of Domestic Investment and FDI Its Companies are a Major Source of FDI 4 th Place Among Emerging Economies in FDI Attraction Technology Companies Outsourcing Production Abroad Producer and Exporter of High-value Added Goods. Maquiladora Outsourcing Importer of 60% of its Food Consumption, (3 er World Largest Importer) Producer and Exporter of Agro Food Products. Population Age Average of 24 years Leading Producer and Exporter of High Technology Products Buyer of High Technology Products and Systems
    16. 16. Promoting Mexico-APEC Business Partnerships <ul><li>Mexico is committed to further economic ties and opportunities with Asia-Pacific </li></ul><ul><li>Mexico’s trade agreements open up investment and market access opportunities </li></ul><ul><li>More than 12 years of trade achievements under NAFTA, the world’s largest market, gives Mexico an edge on logistics, transportation and security issues, customs and trade facilitation. </li></ul><ul><li>Mexico, along with Canada and the U.S. conform a transportation and logistics hub for Asia Pacific trade </li></ul><ul><li>The latter is key to APEC and Asia Pacific companies seeking North America’s market access, via Mexico </li></ul>
    17. 17. Mexico: Key Aspects <ul><li>World’s 12 th Largest Economy (2005) </li></ul><ul><li>GDP: $775.2 billion (US$) (2005) </li></ul><ul><li>GDP/Capita: US$ 7,454 </li></ul><ul><li>3.0 % of GDP Growth in 2005 </li></ul><ul><li>Population: 104 Million (2005) </li></ul><ul><li>50% is under the age of 27 </li></ul><ul><li>Projected population in 2025: 125.9 million </li></ul><ul><li>Inflation: 3.3 %, 2005 </li></ul><ul><li>Stable Currency: Floating Regime Since 1995! </li></ul>
    18. 18. <ul><li>It contains FTA known disciplines, in addition to bilateral cooperation mechanisms to promote economic growth. </li></ul><ul><ul><li>Trade in goods </li></ul></ul><ul><ul><li>(including agriculture) </li></ul></ul><ul><ul><ul><li>Sanitary and Phytosanitary Measures </li></ul></ul></ul><ul><ul><ul><li>Technical Regulations </li></ul></ul></ul><ul><ul><li>Rules of Origin </li></ul></ul><ul><ul><li>Customs Procedures </li></ul></ul><ul><ul><li>Safeguard measures </li></ul></ul><ul><ul><li>Investment </li></ul></ul><ul><ul><li>Services </li></ul></ul><ul><ul><li>Government Procurement </li></ul></ul><ul><ul><li>Competetion Policies </li></ul></ul><ul><ul><li>Dispute Settlement </li></ul></ul><ul><ul><li>Trade and Investment Promotion </li></ul></ul><ul><ul><li>Support Industries </li></ul></ul><ul><ul><li>SMEs </li></ul></ul><ul><ul><li>Science and Technology </li></ul></ul><ul><ul><li>Education and Human Talent Development </li></ul></ul><ul><ul><li>Intellectual Property </li></ul></ul><ul><ul><li>Agriculture </li></ul></ul><ul><ul><li>Tourism </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>Improvement of the Business Environment </li></ul></ul>FTA Disciplines Bilateral Cooperation Mexico-Japan EPA Main Features
    19. 19. 91% Fuente: Secretaría de Economía. * Para México, el 1.5% de las fracciones arancelarias se desgravarán en plazos intermedios Tariff Elimination Percentage of tariffs fractions of each country <ul><li>Special Cases </li></ul><ul><li>Immediate access: capital goods, electric manufacturers, electronic. </li></ul><ul><li>5 years: Some Chemical Products, Auto Parts, Medical Equipment and Railroads. </li></ul><ul><li>10 years: Pharmaceuticals, Chemical Products, Cosmetics, Soaps, Rubber, Wood, Plastic Products, Steel and Glass. </li></ul><ul><li>Japanese Market Access </li></ul><ul><li>Shoes and leather </li></ul><ul><li>Apparel </li></ul><ul><li>Mexican Market Access </li></ul><ul><li>Steel </li></ul><ul><li>Automotive </li></ul>Mexico-Japan EPA Trade Sectors Mexico* Japan 9% 49.5% 4% 5% 0 25 50 75 100 Immediate 5 years 10 years 40% % of fractions
    20. 20. <ul><li>Access to the Japanese Market: </li></ul><ul><li>Immediate access: green coffee, lemon, beer, avocado, tequila, mangoes. </li></ul><ul><li>5 year phase-out: grapes, toasted coffee, melons, sauces, frozen strawberries, nuts. </li></ul><ul><li>10 year phase-out: banana, processed vegetables, jams, etc. </li></ul><ul><li>Preferential access for sensible products, subject to quotas: pork meat, beef, chicken, chicken parts, oranges and orange juice </li></ul><ul><li>At third year, negotiation review of selected products: pineapple, sugar and wheat. </li></ul><ul><li>Incorporation of all Products of Interest to Mexico . </li></ul><ul><ul><li>Immediate and unrestricted access: yellow fin fresh and canning tuna, shrimp, some crustaceans and squid. </li></ul></ul><ul><ul><li>Access under negotiated quota: sardines and calamari. </li></ul></ul>Mexico-Japan Market Access Farming and Fishing sectors
    21. 21. MEXICO – JAPAN ECONOMIC PARTNERSHIP AGREEMENT Total Trade 2000 - 2005 Source: Ministry of Finance of Japan Exchange rate: 2000:US$1=107.36yen, 2001:US$1=120.95yen, 2002:US$1=125.65yen, 2003:US$1=116.41yen, 2004:US$1=119.18yen, 2005:US$1=112.03 yen. Figures are rounded off not necessarily adding up to the totals. Elaborated by the Office of Representation in Japan of Mexico ’s Secretary of Economy Million US$ Year
    22. 22. Source: Ministry of Finance of Japan * Exchange rate: US$1=112.83 yen. Figures are rounded off not necessarily adding up to the totals. Note: ¹ R. S. - Ratio to the same month of previous year Elaborated: Office of Representation in Japan of Mexico ’s Secretary of Economy MEXICO – JAPAN ECONOMIC PARTNERSHIP AGREEMENT TOTAL TRADE SINCE EPA’s IMPLEMENTATION R.S. (%) ¹ April 2004 – Jan. 2005 April 2005 – Jan. 2006 551.2 527.9 551.9 637.5 554.6 687.7 794.4 694.7 601.3 520.1 1,025.5 774.3 TOTAL: 6,121.3 TOTAL: 8,272.1 TOTAL: 35.1% Million US$ 551.2 527.9 551.9 637.5 554.6 687.7 794.4 694.7 601.3 520.1 726.5 645.2 702.6 722.1 775.4 950.5 974.0 976.0 1,025.5 774.3
    23. 23. Mexico’s Key Aspects… <ul><li>A Consolidated Form of Democratic Government. Three Branches of Government: Executive, Legislative, Judicial. </li></ul><ul><li>Land Expanse: 1.967 million square kilometers </li></ul><ul><li>3,000 Kilometer Border with the United States </li></ul><ul><li>In 2002, the U.S.-Mexico Border had 254 million “land-port” crossings, including more than 75 million cars and 3.5 million trucks </li></ul><ul><li>31 States, 1 Federal District </li></ul><ul><li>Presidential Elections: July 2006 </li></ul>
    24. 24. Thank you! <ul><li>Raul Urteaga Trani </li></ul><ul><li>Minister, Trade & Investment </li></ul><ul><li>Embassy of Mexico </li></ul><ul><li>Tokyo, Japan </li></ul><ul><li>[email_address] </li></ul>

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