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ECONOMIC BRIEFINGS
Information provided by the Mexico Trade Commission-Bancomext’s New York Office.


Mexico ranks ninth as food supplier in the world

Mexico is the ninth food exporter in the world. According to data from the Ministry of Agriculture, Cattle, Rural Development, Fishing and Food (Sagarpa), exports of produce from January to March amounted to US$3.899 billion, a 0.8% increase when compared to the same term in 2006.
A document informs that in the first quarter of this year Mexico exported food and beverage for US$1.732 million, a year-to-year increase of 10.3%. Imports by both sectors in the above-mentioned period amounted to US$2.378 billion.
As far as exports to the USA are concerned, Mexican producers sold agriculture and food products for a value of US$10.6 billion in 2006, 12.8% more than in 2005. Avocados, grapes, lemons, mangoes, strawberries, papayas and nuts are among the products sold in the United States, a 21.9% increase.
Source: El Universal


Boom in Aeronautics Industry

Aeronautics Industry in Mexico is constantly growing, which has been reflected in the generation of 16 thousand 500 well-paid jobs.
The Minister of the Economy, Eduardo Sojo, pointed out that the sector has already presence in 14 Mexican states, where 136 companies are working: 101 devoted to manufacturing, 19 to maintenance and 16 to engineering and design.
Sojo pointed out that economic stability in Mexico has translated into confidence for international businessmen in every field, who see Mexico as a platform to make global business and produce and export high quality goods and services.
Source: El Financiero



FDI grows 66.4% in one quarter: Ministry of Economy

Foreign Direct Investment received in Mexico from January to March was 66.4% higher than the same term last year, adding to US$6.553 billion, the Ministry of the Economy said.
The main investors were the United States with 65.8%, Bermuda which contributed with 14%, Virgin Islands 8% and Holland 5%.
The Ministry said that the sectors most favored by FDI were manufacturing with 58.5%, services with 13.7%, trade with 13.6% and the extraction sector with 13.1%.
Regarding the source of investments the Ministry of the Economy said that 29.3% were new investments; 36.9% were profit reinvestment, 23.3% came from inter-company accounts and 10% for fixed assets imported by maquiladora companies with FDI.
Source: Reforma


Maquiladora: products with high value added

When China became a world attraction center for manufacturing products, many people thought the maquilador sector in Mexico was doomed; Mexico seemed unable to compete against its Asian rivals. However, these predictions proved wrong.
From the 270 thousand jobs lost between 2000 and 2002, the sector has so far recovered more than 150 thousand, according to Colegio de la Frontera Norte.
An example of the recovery of maquiladora industry in Mexico is the Japanese company manufacturer of electronic components for cell phones, Kyoera. Saul Garcia, Operations Director for Kyocera in Tijuana, said that there are three reasons why the maquilador sector has survived.
The first one is that maquiladoras have increased the value added of its products and employees are now able to perform tasks requiring a higher degree of complexity. Garcia stressed that Kyocera has put its money in constant workers’ training. We cannot compete against production costs in China; however, we do compete with the quality of our products, he added.
The second reason is related to proximity to the US market. Being close is vital to some products that demand rigorous delivery times and to products which transportation may be expensive. Garcia said that it was for these reasons that Kyocera decided to start producing solar panels in Tijuana. Two years ago the Japanese company produced in Mexico 1,000 solar panels per month, currently they are producing 10,500 and by the end of this year production should reach 20,000.
The third reason for the survival of this sector has been the creation of clusters that have specialized in certain products.
Tijuana has focused in manufacturing flat screen TV sets, Ciudad Juarez in auto parts and Guadalajara in electronic products such as remote controls.
Source: Financial Times

 

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