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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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