Antonio Tajani: Fostering economic ties with Mexico
European Commission - MEMO/12/326 14/05/2012
Other available languages: none
Brussels, 14 May 2012
Antonio Tajani: Fostering economic ties with Mexico
European Commission Vice President Antonio Tajani together with European CEOs from all main industrial sectors will visit the United Mexican States from 14 to 15 May. Following a similar visit to the United States, this mission aims at fostering industrial cooperation and business relation with Mexico. In particular Vice President Tajani will sign a letter of intent to help SMEs both from Mexico and the EU to better profit from the opportunities offered by globalisation. He will also discuss improving industrial cooperation in general and in particular in the fields of raw materials and space. The EU delegation consists of representatives of European companies, industrial sector associations and horizontal business associations incorporating each a large number of industrial sectors (see list below). Vice President Antonio Tajani, responsible for Industry and Enterprises, said: “We are here to intensify our business cooperation to assist both our economies to grow. For example, there is ample space for increasing direct investments in both directions, in particular for SMEs. If they become more international, this will help to stimulate growth in the EU and Mexico.”
This mission is part of the new series of "Missions for Growth" to help European enterprises, in particular small and medium sized enterprises to better profit from fast growing emerging international markets.
The visit will focus on high-level political meetings in Mexico during which Vice President Antonio Tajani will sign Memorandums of Understanding and letters of intent to improve business and industrial cooperation. With Minister of Economy Bruno Ferrari he will sign a letter of intents on industrial cooperation and on a policy dialogue on raw materials.
At a bilateral meeting with Minister for Communication & Transport Perez-Jacome VP Tajani will sign a letter of intent on improving co-operation in the field of space.
A series of business to business meetings will be organized by AL-Invest/Eurocentro NAFINi and COMCE, the Mexican Council for Foreign Trade, the private sector organism dedicated to promote international trade, foreign investment and technological development. AL-Invest is the EU's economic co-operation programme, that aims at supporting the internationalization of SMEs in Latin America in collaboration with their European partners in order to contribute to reinforcing social cohesion in the region.1
On this occasion EU entrepreneurs will describe their profile and manifest their interest in order to be matched up with Mexican business representatives.
In parallel, meetings with relevant dependencies of the Federal Government organized by ProMéxico on infrastructure projects, (renewable) energy sector, and SME co-operation will take place.
Focus on specific industrial sectors will be laid at the presentation of business opportunities and possible investments in the State of Querétaro.
The Vice President will finish his visit on 16th of May in Merida, where he will participate in the fourth T20 Tourism Ministers’ Meeting, a forum for the growth and development of sustainable tourism. “Tourism is a viable alternative to job creation”, said Vice President Tajani, “especially today when our countries are called more than ever to find solutions to strengthen economic growth and boost employment. It is now, more than ever, the moment for us to underline that tourism creates jobs and contributes to sustained growth throughout the world.
Population, GDP and surface area – Comparison Mexico/EU
Surface Area: 1 964 400 km2 4 423 147 km2
Population: 109.7 mio 502, 5 mio (2011)
Current GDP: € 851.4 billion € 12,064.8 trillion (2011)
GDP per capita: € 7 760.7 € 24,108.2 (2011)
Trade in goods - EU 27 with Mexico
EU goods exports to Mexico 2011: € 23.8 billion
EU goods imports from Mexico 2011: € 16.3 billion
Key EU exports to Mexico include machinery and electric equipment, transport equipment, chemical products, and mineral products.
The EU's key imports from Mexico are mineral products, machinery and electric equipment, transport equipment and optic photo precision instruments.
Trade in commercial services - EU 27 with Mexico
EU services exports to Mexico 2010: € 5.1 billion
EU services imports from Mexico 2010: € 3.1 billion
From Mexico, the EU buys travel, sea transport, air transport and construction services.
The EU exports travel, sea transport, air transport and computer and information services.
Foreign Direct Investment in 2010 - EU 27 with Mexico
EU investment flows to Mexico: € 10.1 billion
Mexican investment flows to EU: € 2 billion
EU investment stocks in Mexico: € 81.1 billion
Mexican investment stocks in EU: € 10.3 billion
Europe as an attractive destination for Foreign Direct Investment
Europe would give Mexican businesses access:
Europe offers diversified economies and industries with both high-tech and low cost economies and several sectors showing increased value-added. The labour force is highly skilled and the business environment is predictable.
The Mexican economy
For a decade Mexico has enjoyed strong growth, low inflation, solid balance sheets of public and private sectors, and a strong and well capitalized banking system. As an economic bridge between North and the South, Mexico is an important interlocutor for the EU.
Mexico is member of the G20. Mexico will host the G20 Summit at Leaders' level in June 2012. It previously hosted the G20 Ministerial in 2003.
Mexico concluded with the EU the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement which entered into force in November 2000.
According to the IMF, Mexico is now the 14th largest economy in the world in terms of Gross Domestic Product, but it is only 57th in per capita GDP. Mexico is still lagging behind in terms of major infrastructure, education and health.
Mexico has a market and export-oriented economy. As this is an export-oriented economy, over 90% of the Mexican market under free trade agreements with over forty countries, including the European Union, Japan, Israel, most of Central America and South America. The North American Free Trade Agreement (NAFTA) is the largest Free Trade Area in the world ratified in 1992 by the governments of the United States, Canada and Mexico.
After a crisis due to the slowdown of the U.S. economy in the early 2000s, growth in Mexico has now stabilized around 4%. The main advantages of the Mexican economy are undoubtedly the rich soil that allows the country to be a leading global producer of mineral oil (the fifth world-wide producer). Like the major developed countries, Mexico benefits from the growth of its service sector, which represents nearly 70% of its GDP. On the other hand, agriculture, even though it employs nearly 16% of the work force, represents only 4% of GDP.
The Mexican manufacturing sector, very important, now suffers from the reduced activity of its maquiladoras (factories located along the border with the USA), due to cheap labour competition from Chinese factories mainly. Mexico is highly dependent on exports to the United States (80% of total), which, in times of competition with Asia, is also one of its main weaknesses.
T20 Tourism Ministers’ Meeting
The T.20 Ministers’ Meeting initiative was launched end of 2009, on the background of the economic downturn, as an expression of the valuable contribution that the travel and tourism sector can bring to the recovery of the global economy and to a strong, sustainable and balanced growth. The T.20 provides a platform to explore the synergies between strengthened global economic cooperation and the tourism sector’s efforts to build resilience and stimulate new sustainable and responsible growth.
Three meetings took place so far: in South Africa, on 22-24 February 2010, in the Republic of Korea, on 11-13 October 2010 and in France, on 25 October 2011.
The fourth T.20 Ministers’ Meeting will be held on 15-16 May 2012 in Mexico, Merida (Yucatán). The main topic of the meeting will be: “Tourism as an alternative to stimulate job creation”.
Business Delegation to Mexico
Gospodjinački Marko, Member of the Governing Board of EREC and President, ESHA
The European Renewable Energy Council (EREC) is the umbrella organisation of the European renewable energy industry, trade and research associations active in the sectors of photovoltaics, small hydropower, solar thermal, bioenergy, geothermal, concentrated solar power and wind energy.
The European Small Hydropower Association (ESHA) represents the interest of the hydropower sector by promoting the benefits and opportunities of hydropower at EU level. 20 EU associations are members of ESHA.
Guerrini Simone Senior Vice President International Affairs, and Tarantelli Valter FINMECCANICA
Finmeccanica is Italy’s leading industrial group in the high technology sector and ranks among the top ten global players in aerospace, defence and security.
Jimenez Sanudo Jorge, ICEACSA
ICEACSA brings together a multidisciplinary group of professionals to address the widest range of consulting services in civil engineering, studies and construction management of highways, railways, urbanism, bridges, among others.
Lladro ROSA, CEO, LLADRO, Board Member ECCIA
Lladró is a Valencian Spanish company based in Tavernes Blanques, that produces high quality porcelain figurines.
Luque Santiago, Vice President Latin America, Proprietary Pharmaceuticals, ABBOTT
Abbott is a global, broad-based health care company devoted to discovering new medicines, new technologies and new ways to manage health.
Melchiotti Nicola, Manager ENEL GREEN POWER
Enel Green Power, is dedicated to developing and managing energy generation from renewable sources at an international level, with a presence in Europe and the American continent.
Menassi Giuliano, PIRELLI, Country Manager Mexico
Today Pirelli counts 22 tyre industrial plants, in four continents, operating through a widespread sales network in over 160 countries around the world.
Palacios-Tovar Alejandro, Executive Director, CONTTIGO
Conttigo consulting & services is offering a comprehensive consulting service enabling companies to undertake activities of internationalization.
Piepsz, Olivier, Senior Vice-president Latin America, SAFRAN
Safran is a leading international high-technology group with three core businesses: Aerospace (propulsion and equipment), Defence and Security.
Schoch Pedro J., New Markets and Institutional Relations Director, GMV
GMV is a global engineering and consulting firm headquartered in Madrid with subsidiaries in Germany, Poland, Portugal, USA and Malaysia in several markets including Aeronautics, Space, Defense, Security, Healthcare, Transportation and IT.
Selinger Felix, CEO, Ormazabal
Ormazabal is one of the leading manufacturers of Medium Voltage equipment worldwide which provides customers with solutions for electrical distribution networks, based on high added-value products and services.
Serra Joaquin, Senior Vice-President Institutional Relations, NATURA BISSE, Board Member ECCIA
Natura Bissé has been a leader in innovation and development of facial and body cosmetics whose formulations are able to allow the maximum concentrations of highly efficient ingredients and new textures.
Valla Valerio, Studio VALLA
Studio Valla has been operating since 1999 providing advisory to business and public administration and services aimed at financing investments and development of project ideas.
Van Marcke Peter, Member of the Board, VAN MARCKE Group
Van Marcke is a specialized wholesaler and distributor of domestic products linked to water, heating and ventilation.
Zakrecki Janusz, CEO, Polskie Zakłady Lotnicze Sp. z o.o. – PZL Mielec A Sikorsky Aircraft Company
Polskie Zakłady Lotnicze Sp. z o.o. – PZL Mielec A Sikorsky Aircraft Company is the biggest Polish manufacturer of aircraft, currently expanding its production profile to include aerostructures and helicopters
BANCO BILBAO VIZCAYA ARGENTINA (BBVA)
BBVA is a global group that offers individual and corporate customers the most complete range of financial and non-financial products and services.
By directly funding projects for organizations that represent and promote private sector development, such as Chambers of Commerce, Trade Associations, Export-Promotion Agencies, etc.), the AL-Invest Programme facilitates the process of internationalization of Latin American SMEs. In the Mexico-Central America region AL-Invest activities are implemented by Nacional Financiera through the Eurocentro NAFIN.
COMCE operates through 60 Bilateral Business Committees (BBC) based in specific collaboration agreements signed with similar organizations in several countries (14 in the EU: Germany, Austria, Belgium, Denmark, Spain, Finland, France, Great Britain, Netherlands, Ireland, Italy, Poland, Portugal and Sweden). The BBC's are composed of Mexican business representatives with a wide and recognized trajectory, seeking to promote Mexico's business interests in each country.