catalytic role of the apec process: behind the border, beyond the bogor goals
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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. Mexico’s Network of FTA’s. 12 FTA’s with more than 40 countries. 1. Chile - PowerPoint PPT PresentationTRANSCRIPT
Catalytic Role of the APEC Catalytic Role of the APEC Process: Behind the Border, Process: Behind the Border,
Beyond the Bogor GoalsBeyond the Bogor Goals
Raul Urteaga-TraniRaul Urteaga-TraniMinister, Trade & InvestmentMinister, Trade & Investment
Mexico’s Secretary of EconomyMexico’s Secretary of EconomyEmbassy of Mexico, Tokyo, JapanEmbassy of Mexico, Tokyo, Japan
March 15, 2006March 15, 2006
Mexico’s Network of FTA’sMexico’s Network of FTA’s
12 FTA’s with more than 40 countries12 FTA’s with more than 40 countries
1. Chile 2. US and Canada, NAFTA3. Costa Rica 4. Bolivia 5. Colombia and Venezuela, G3 6. Nicaragua 7. European Union, 25 countries8. Israel 9. Guatemala, Honduras and El Salvador, Northern Triangle10. Uruguay 11. EFTA, Iceland, Norway and Switzerland 12. Japan
Mexico’s Global Trade Mexico’s Global Trade Performance Since NAFTA’s Performance Since NAFTA’s ImplementationImplementation
60.9
79.3
-18.4
79.572.4
7.1
95.989.5
6.5
110.4109.8
0.6
117.5125.4
-7.9
136.4141.9
-5.6
166.4174.4
-8
158.4168.4
-9.9
160.8168.7
-7.9
165.4170.9
-5.6
188.6196.7
-8.1
-50
0
50
100
150
200
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Exports Imports Trade Balance
Bill
ion
Bill
ion
dolla
rsdolla
rs
Source: BANXICOSource: BANXICO
Mexico’s Exports have Experienced Greater Growth
than Overall World Exports…
325
216
166
100
150
200
250
300
350
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Mexico'sexports toFTApartners
Mexico'sexports tonon-FTApartners
WorldExports
Source: Ministry of Economy with data from Banxico and WTO
Merchandise Exports Index 1993=100
2,2242,026
855 851
518 462 373 344
0
400
800
1,200
1,600
2,000
2,400
EU* US Japan China Canada HongKong
SouthKorea
Mexico
US
bill
ion
do
llars
Source: WTO 2004* excluding intra-EU trade
Mexico is the World’s 8Mexico is the World’s 8thth Largest Largest Trading NationTrading Nation
Main trading nations 2003
Mexico has Diversified its Export Structure
Source: Ministry of Economy with data from Banxico.
Oil 70%
Manufacturings 25 %
Agriculture5%
2004Oil
Manufacturing85%
Agriculture3%
1982
12%
Mexico is the Second Largest Market for US goods
35
37
54
110
190
US billion dollars
China
UK
Japan
* Mexico
Canada
Fuente: Ministry of the Economy with data from USDOC * Ministry of the Economy with data from BANXICO
19
26
45
48
100
US billion dollars
Germany
UK
* Mexico
Japan
Canada
US exports
20041993
Today, Mexico is:Today, Mexico is:
The U.S. Second Largest Trading Partner, after The U.S. Second Largest Trading Partner, after CanadaCanada
A NAFTA Trade Member whose Trade with the A NAFTA Trade Member whose Trade with the U.S. and Canada has Almost Tripled since 1994U.S. and Canada has Almost Tripled since 1994
Mexico’s Trade Leads Latin America with 44% Mexico’s Trade Leads Latin America with 44% Share of the Region’s Total Exports and 49% of Share of the Region’s Total Exports and 49% of its Total Importsits Total Imports
The First Country in the Region with an FTA The First Country in the Region with an FTA with Japanwith Japan
Asia-Pacific is Mexico’s Priority in its Trade and Asia-Pacific is Mexico’s Priority in its Trade and Investment Diversification StrategyInvestment Diversification Strategy
Mexico FDI Flows. US$ 173 Billion From 1994-2005
FDI in Mexico by Sector
Other Serv.2
7.8%
Finan. Serv. 23.4%
Manufacturing49.3%
Agriculture and Infrastructure
8.5%
Commerce11.0%
2Social and communal services: hotels and restaurants, professional, technical and personal.
1Agricultural, 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.
USA62.5%
Others 7.4%
Japan 2.3%
Germany 2.6%
Spain 9.4%
Canada3.3%
Netherlands 7.6%
UK 3.4%
MEXICO PROMOTES MEXICO PROMOTES GROWTH AND GROWTH AND INNOVATIONINNOVATION
- - Automotive - TourismAutomotive - Tourism
- Electronics - Commerce- Electronics - Commerce
- Software, IT - Construction- Software, IT - Construction
- Aerospace - Maquiladoras- Aerospace - Maquiladoras
- Textile - Chemical- Textile - Chemical
- Agriculture - Shoe and - Agriculture - Shoe and Leather Leather
Mexico’s Policies in Support of Mexico’s Policies in Support of Growth and InnovationGrowth and Innovation
Providing economic, fiscal and regulatory Providing economic, fiscal and regulatory incentives for thousands of suppliers to incentives for thousands of suppliers to locate in Mexicolocate in Mexico
Supporting the development of local Supporting the development of local innovation, research and development innovation, research and development through university/business/local through university/business/local government partnershipsgovernment partnerships
Significantly increase investments in Significantly increase investments in physical and social infrastructure physical and social infrastructure
90100110120130140150160170
(Enero 1999 = 100)
Employment
Manufacturing Plants
Value Added Content
AUTOMOTIVEMexico’s Manufacturing Evolution
PUBLIC POLICY FOR PUBLIC POLICY FOR COMPETITIVENESSCOMPETITIVENESS
FISCAL ENERGY
FINANCIAL LABOR
TRANSPARENCY INFRASTRUCTURE
STRUCTURALREFORMS
EDUCATION
JUDICIALSYSTEM
PENSIONSYSTEM
GOVERNANCE
Mexico-Japan Mexico-Japan ComplementaritiesComplementarities
Technology and InnovationTechnology and Innovation Manufacturing SavingsManufacturing Savings Market AccessMarket Access Intra-Trade Growth, Particularly in Intra-Trade Growth, Particularly in
Automotive and Electronics Automotive and Electronics Transportation LogisticsTransportation Logistics Global Security ConsiderationsGlobal Security Considerations Investment Protection, including IPRInvestment Protection, including IPR
Mexico-Japan Trade and Mexico-Japan Trade and Investment ComplementaritiesInvestment Complementarities
JAPAN MEXICOWorld’s 2nd Largest Economy World’s 12th 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
4th Place Among Emerging Economies inFDI Attraction
Technology Companies Outsourcing Production Abroad
Producer and Exporter of High-value Added Goods. Maquiladora Outsourcing
Importer of 60% of its Food Consumption, (3er 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
Promoting Mexico-APEC Promoting Mexico-APEC Business PartnershipsBusiness Partnerships
Mexico is committed to further economic ties and Mexico is committed to further economic ties and opportunities with Asia-Pacificopportunities with Asia-Pacific
Mexico’s trade agreements open up investment and market Mexico’s trade agreements open up investment and market access opportunitiesaccess opportunities
More than 12 years of trade achievements under NAFTA, More than 12 years of trade achievements under NAFTA, the world’s largest market, gives Mexico an edge on the world’s largest market, gives Mexico an edge on logistics, transportation and security issues, customs and logistics, transportation and security issues, customs and trade facilitation. trade facilitation.
Mexico, along with Canada and the U.S. conform a Mexico, along with Canada and the U.S. conform a transportation and logistics hub for Asia Pacific trade transportation and logistics hub for Asia Pacific trade
The latter is key to APEC and Asia Pacific companies The latter is key to APEC and Asia Pacific companies seeking North America’s market access, via Mexico seeking North America’s market access, via Mexico
Mexico: Key AspectsMexico: Key Aspects World’s 12World’s 12thth Largest Economy (2005) Largest Economy (2005) GDP: $775.2 billion (US$) (2005)GDP: $775.2 billion (US$) (2005) GDP/Capita: US$ 7,454GDP/Capita: US$ 7,454 3.0 % of GDP Growth in 20053.0 % of GDP Growth in 2005 Population: 104 Million (2005)Population: 104 Million (2005) 50% is under the age of 2750% is under the age of 27 Projected population in 2025: 125.9 millionProjected population in 2025: 125.9 million Inflation: 3.3 %, 2005Inflation: 3.3 %, 2005 Stable Currency: Floating Regime Since Stable Currency: Floating Regime Since
1995!1995!
It contains FTA known disciplines, in addition to bilateral cooperation mechanisms to promote economic growth.
Trade in goods (including agriculture)
Sanitary and Phytosanitary Measures
Technical Regulations Rules of Origin Customs Procedures Safeguard measures Investment Services Government Procurement Competetion Policies Dispute Settlement
Trade and Investment Promotion
Support Industries SMEs Science and Technology Education and Human Talent
Development Intellectual Property Agriculture Tourism Environment Improvement of the
Business Environment
FTA Disciplines Bilateral Cooperation
Mexico-Japan EPA Main Mexico-Japan EPA Main FeaturesFeatures
Mexico*
Japan
9%
49.5%
4% 5%0
25
50
75
100
Immediate 5 years 10 years
40%
% of fractions91%
Fuente: Secretaría de Economía.* Para México, el 1.5% de las fracciones arancelarias se desgravarán en plazos intermedios
Tariff EliminationPercentage of tariffs fractions of each country
Special Cases
Immediate access: capital goods, electric manufacturers, electronic.
5 years: Some Chemical Products, Auto Parts, Medical Equipment and Railroads.
10 years: Pharmaceuticals, Chemical Products, Cosmetics, Soaps, Rubber, Wood, Plastic Products, Steel and Glass.
Japanese Market Access
Shoes and leather
Apparel
Mexican Market Access
Steel
Automotive
Mexico-Japan EPA Trade Mexico-Japan EPA Trade SectorsSectors
Access to the Japanese Market:
Immediate access: green coffee, lemon, beer, avocado, tequila, mangoes.
5 year phase-out: grapes, toasted coffee, melons, sauces, frozen strawberries, nuts.
10 year phase-out: banana, processed vegetables, jams, etc.
Preferential access for sensible products, subject to quotas: pork meat, beef, chicken, chicken parts, oranges and orange juice
At third year, negotiation review of selected products: pineapple, sugar and wheat.
Incorporation of all Products of Interest to Mexico. Immediate and unrestricted access: yellow fin fresh and canning
tuna, shrimp, some crustaceans and squid.
Access under negotiated quota: sardines and calamari.
Mexico-Japan Market AccessMexico-Japan Market AccessFarming and Fishing sectorsFarming and Fishing sectors
MEXICO – JAPAN ECONOMIC PARTNERSHIP AGREEMENT
Total Trade 2000 - 2005
Source: Ministry of Finance of JapanExchange 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
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2000 2001 2002 2003 2004 2005
Japan's Exports to Mexico Japan's Imports from Mexico
9,329.5
7,625.6
6,123.75,550.7
5,386.7
6,680.8
Mil
lion
US
$
Year
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: ¹R. S. - Ratio to the same month of previous yearElaborated: Office of Representation in Japan of Mexico’s Secretary of Economy
MEXICO – JAPAN ECONOMIC PARTNERSHIP MEXICO – JAPAN ECONOMIC PARTNERSHIP AGREEMENTAGREEMENT
TOTAL TRADE SINCE EPA’s IMPLEMENTATIONTOTAL TRADE SINCE EPA’s IMPLEMENTATION
R.S. (%)¹April 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%0 150 300 450 600 750 900 1050
January
December
November
October
September
August
July
June
May
April
Million US$0 150 300 450 600 750 900 1050
48.9
70.5
40.5
22.6
38.2
39.8
13.3
27.3
22.2
31.8
0 20 40 60 80 100
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
Mexico’s Key Aspects…Mexico’s Key Aspects… A Consolidated Form of Democratic A Consolidated Form of Democratic
Government. Three Branches of Government: Government. Three Branches of Government: Executive, Legislative, Judicial. Executive, Legislative, Judicial.
Land Expanse: 1.967 million square kilometersLand Expanse: 1.967 million square kilometers 3,000 Kilometer Border with the United States 3,000 Kilometer Border with the United States In 2002, the U.S.-Mexico Border had 254 In 2002, the U.S.-Mexico Border had 254
million “land-port” crossings, including more million “land-port” crossings, including more than 75 million cars and 3.5 million trucksthan 75 million cars and 3.5 million trucks
31 States, 1 Federal District31 States, 1 Federal District Presidential Elections: July 2006Presidential Elections: July 2006
Thank you!Thank you!
Raul Urteaga TraniRaul Urteaga Trani
Minister, Trade & InvestmentMinister, Trade & Investment
Embassy of MexicoEmbassy of Mexico
Tokyo, JapanTokyo, Japan
[email protected]@economia.gob.mx