1 a path towards a more secure manufacturing area in north america a deliberate and carefully...
TRANSCRIPT
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A PATH TOWARDS A MORE SECURE MANUFACTURING AREA IN NORTH
AMERICA
A deliberate and carefully considered invitation to a win-win proposition
Presented by: Alejandro Dieck
AUSTIN, SEPTEMBER 2, 2005
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CONTENTS
INTRODUCTIONINTRODUCTION
MEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENTMEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENT
PROSPECTS WE PUT FORWARDPROSPECTS WE PUT FORWARDIVIV
IIII
II
WHAT’S NEXT? WHAT CAN BE DONE ? WHAT’S NEXT? WHAT CAN BE DONE ? IIIIII
FINAL COMMENTSFINAL COMMENTSVV
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HAS NAFTA WORKED ?
I. INTRODUCTION
4
Trilateral trade reached $727 billion dollars last year, 140.8 % higher than pre-NAFTA levels…
302353
395441
498 529593
688642 628 653
727
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
NAFTA: TRILATERAL TRADE(BILLION DOLLARS)
+ 140.8
Source: Ministry of Economy
I. INTRODUCTION
5
Mexican exports to the U.S. have almost tripled…
MEXICO: EXPORTS TO UNITED STATES(BILLION DOLLARS)
Source: Ministry of Economy
4352
6681
94103
120
148140 143 147
165
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
+ 285.3 %
I. INTRODUCTION
6
Specially, there has been a dramatic growth in bilateral trade, between U.S. and Mexico…
UNITED STATES: EXPORTS TO MEXICO(BILLION DOLLARS)
Source: Ministry of Economy
41.650.8 46.3
56.8
71.478.8
86.9
111.4101.5 97.3 97.5
111.6
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
+ 166.7%
I. INTRODUCTION
7
NAFTA has also helped both of our countries to cope storms arising from financial crisis throughout the last decade
NAFTA
HAS HELPED ECONOMIES TO DEAL
WITH FINANCIAL CRISIS
I. INTRODUCTION
8
UNITED STATES: EXPORTS PERFORMANCE DURING ASIAN CRISIS
(1996-1999)
US. BILLION DOLLARSGrowth 96-991996 1999
US EXPORTS TO MEXICO
56 87 55.3%
US EXPORTS TO ASIA 204 186 - 8.8%
Source: Ministry of Economy
I. INTRODUCTION
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2.64.8 4.4 4.4
11.09.5 9.2
12.8 12.4 13.4
17.1
27.7
15.5
12.3
17.4
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
MEXICO: FOREIGN DIRECT INVESTMENT(Billions of Dollars; Cumulative 1994-
2004=158 bd)
Source: Ministry of Economy
I. INTRODUCTION
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CONTENTS
INTRODUCTIONINTRODUCTION
MEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENTMEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENT
PROSPECTS WE PUT FORWARDPROSPECTS WE PUT FORWARDIVIV
IIII
II
WHAT’S NEXT? WHAT CAN BE DONE ? WHAT’S NEXT? WHAT CAN BE DONE ? IIIIII
FINAL COMMENTSFINAL COMMENTSVV
11
COMPLY WITH MOST DEVELOPMENT COMPLY WITH MOST DEVELOPMENT COUNTRIES (MDC) ON CRITICAL ISSUESCOUNTRIES (MDC) ON CRITICAL ISSUESCOMPLY WITH MOST DEVELOPMENT COMPLY WITH MOST DEVELOPMENT
COUNTRIES (MDC) ON CRITICAL ISSUESCOUNTRIES (MDC) ON CRITICAL ISSUES
Rule of Law11
Intellectual Property22
Anti-Trust Agencies33
Human Rights44
Labor Rights55
Environmental Issues66
Consumer Protection77
II. MEXICAN BUSINESS CONDITION: OPPORTUNITIES WE PROPOSE AT PRESENT
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THE TRANSITION TOWARD THE TRANSITION TOWARD A MODERN DEMOCRACYA MODERN DEMOCRACY
THE TRANSITION TOWARD THE TRANSITION TOWARD A MODERN DEMOCRACYA MODERN DEMOCRACY
The Central BankThe Central Bank11
The CongressThe Congress22
The Judicial PowerThe Judicial Power33
The Political Party in PowerThe Political Party in Power44
The Electoral InstitutionsThe Electoral Institutions55
THE 6 AUTONOMIES
IFAIIFAI66
II. MEXICAN BUSINESS CONDITION: OPPORTUNITIES WE PROPOSE AT PRESENT
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Investment Grade11
Labor Force Growth22
Modern Democracy: Transition Towards77
Labor Productivity33
Policy Making to Improve Domestic Economy
44 Industrial Policy Implementation
55
Sound Financial and Banking Sector66
IMPROVEMENT BUSINESS CONDITIONS IMPROVEMENT BUSINESS CONDITIONS FOR FOR
SUSTAINABLE ECONOMIC GROWTH SUSTAINABLE ECONOMIC GROWTH
IMPROVEMENT BUSINESS CONDITIONS IMPROVEMENT BUSINESS CONDITIONS FOR FOR
SUSTAINABLE ECONOMIC GROWTH SUSTAINABLE ECONOMIC GROWTH
II. MEXICAN BUSINESS CONDITION: OPPORTUNITIES WE PROPOSE AT PRESENT
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It is an International financial institution created with the purpose of financing environmental infrastructure projects.
The NADBANK is one of the best ways our two governments can contribute to enhance the benefits of NAFTA and to make sure we have an efficient physical infrastructure, especially at the border.
We need to increase investments in border infrastructure like transportation, housing, environmental protection, water and wastewater treatment, along with the strengthening of local institutions.
NORTH AMERICAN DEVELOPMENT BANK (NADBANK)
DEEPER AND TRUER COOPERATION…
II. MEXICAN BUSINESS CONDITION: OPPORTUNITIES WE PROPOSE AT PRESENT
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BORDER ENVIRONMENT COOPERATION COMMISSION (BECC)
Their primary roll is to provide technical assistance to border communities and to certify environmental infrastructure projects in the border region for financing consideration by the NADBANK and other sources
II. MEXICAN BUSINESS CONDITION: OPPORTUNITIES WE PROPOSE AT PRESENT
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FREE AND SECURE TRADE (FAST)Program designed to ensure security and safety while enhancing the economic prosperity of both countries.
FAST is already working in Texas, specifically in the US cities of El Paso, Laredo, Hidalgo and Brownsville.
We need to enhance security and facilitating trade…
CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT)Initiative between government and business designed
to protect the security
II. MEXICAN BUSINESS CONDITION: OPPORTUNITIES WE PROPOSE AT PRESENT
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CONTENTS
INTRODUCTIONINTRODUCTION
MEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENTMEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENT
PROSPECTS WE PUT FORWARDPROSPECTS WE PUT FORWARDIVIV
IIII
II
WHAT’S NEXT? WHAT CAN BE DONE ? WHAT’S NEXT? WHAT CAN BE DONE ? IIIIII
FINAL COMMENTSFINAL COMMENTSVV
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III. WHAT’S NEXT? WHAT CAN BE DONE?
Construct real and effective avenues of integration, cooperation and alliances
Involve universities, enterprises, associations, research centers, to profit from the growing market of the region
Coordinate efforts to foster the regional automobile sector
Coordinate efforts to foster every other regional opportunity, particularly in the manufacturing sector
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III. WHAT’S NEXT? WHAT CAN BE DONE?
Create the Pro-America Financial Intermediaries Association that will facilitate the (financial) resources allocation to areas where they are scarce and hence expensive
Design mechanisms by which Mexican companies or individuals could be considered eligible for applying to programs where minorities have some preferences
Design mechanisms to promote consumption of goods and services of the region
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CONTENTS
INTRODUCTIONINTRODUCTION
MEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENTMEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENT
PROSPECTS WE PUT FORWARDPROSPECTS WE PUT FORWARDIVIV
IIII
II
WHAT’S NEXT? WHAT CAN BE DONE ? WHAT’S NEXT? WHAT CAN BE DONE ? IIIIII
FINAL COMMENTSFINAL COMMENTSVV
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POSITIVE OUTLOOK WHEN POSITIVE OUTLOOK WHEN STRUCTURAL REFORMSSTRUCTURAL REFORMS
OCURROCURR
POSITIVE OUTLOOK WHEN POSITIVE OUTLOOK WHEN STRUCTURAL REFORMSSTRUCTURAL REFORMS
OCURROCURR
FISCALFISCAL
• Sound Policy• Growth Oriented
LABORLABOR
• More Flexible Labor Market
ENERGYENERGY
• A World Class Competitive Energy Sector
TELECOMMUNICATIONS
TELECOMMUNICATIONS
• Improved Level of Competition in the Sector
11
22
33
44
IV. PROSPECTS WE PUT FORWARD
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SECTOR WIDE INVESTMENT SECTOR WIDE INVESTMENT OPPORTUNITIESOPPORTUNITIES
SECTOR WIDE INVESTMENT SECTOR WIDE INVESTMENT OPPORTUNITIESOPPORTUNITIES
MANUFACTURING SERVICES
1. AGROBUSINESS
2. FOOD AND BEVERAGES
3. AUTOMOTIVE AND AUTOPARTS
4. PAPER
5. STEEL
6. SHOES
1. CONSTRUCTION (HOUSING)
2. FINANCING
3. ENVIRONMENTAL CARE
4. REAL ESTATE
5. FISHING
6. TOURISM
7. GOVERNMENT PROCUREMENT
8. ENERGY
IV. PROSPECTS WE PUT FORWARD
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CONTENTS
INTRODUCTIONINTRODUCTION
MEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENTMEXICAN BUSINESS CONDITIONS: OPPORTUNITIES WE PROPOSE AT PRESENT
PROSPECTS WE PUT FORWARDPROSPECTS WE PUT FORWARDIVIV
IIII
II
WHAT’S NEXT? WHAT CAN BE DONE ? WHAT’S NEXT? WHAT CAN BE DONE ? IIIIII
FINAL COMMENTSFINAL COMMENTSVV
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FINAL STATEMENTS
Globalization itself is changing; so does the way we need to adjust to it
Other economic areas have shown more aggressiveness on the matter
Limited progress could be explained by the priority security has gained since 9-11
We have before us an opportunity to set an example that can be emulated by other states in the Union
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ALEJANDRO DIECKChief of Staff of the Minister of Economy in Mexico
+52(55)5729-9149 & 50 e-mail: [email protected]
2005