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TRIPLE GOLD SUMMER CONFERENCE AGENDA 1. WHAT’S PROMEXICO 2. HOW WE CAN ASSIST FOREIGN COMPANIES 3. BRIEFING ON THE MEXICAN ECONOMY 4. WHY MEXICO? LONG TERM FUNDAMENTALS 5. MEXICO’S OUTLOOK WHO WE ARE • Agency of the Mexican government • Trade & Investment Promotion • Facilitate international business in Mexico • Encourage direct investment into Mexico • Coordinate investment & trade promotion among different levels of government STRONG PLATFORM Offices in every state of Mexico 30 trade offices around the world from the U.S. to China HOW WE CAN HELP YOU For trade projects • • • • • Identify suppliers Connections with the federal & local governments and industrial associations Match-makings Organize business tours Put together vendor shows For doing business in Mexico • • • • • • • Provide legal and economic information Identify potential partners Find investment opportunites Introductions and meetings with the government Business tours to Mexico Investment Seminars Publications: Industrial Costs Guide THE MEXICAN ECONOMY BRIEFING ON CURRENT SITUATION THE MEXICAN ECONOMY… …IN A GLOBAL CONTEXT IN 2008 Twelve in the world economy MEX. GDP: $1.1 Trillion U.S. GDP: $14.3 Trillion FDI reached $18 bn First Latin American Exporter Mexico: $294 Bn Brazil: $200 Bn Venezuela: $104 Bn THE ECONOMY US- Mexico IP Manufacturing Production Concepto Industrial Activity Mining Oil Non- Oil Electricity, Water, Gas Construction Manufacturing Abr/2009 (10.7) (0.9) (3.6) 14.0 (3.1) (8.2) (14.9) …export-oriented economy…hardly hit… but recession less painfull than others from the past THE ECONOMY “There is light at the end of the tunnel”: Credit Suisse Manufacturing Production 120 110 100 90 80 E FMAM J J A SONDE FMAM J J A SONDE FMAM J J A SONDE FMAM J J A SONDE FMA Inflation 2005 2006 Serie Desestacionalizada 2007 2008 Tendencia Conference Board Indexes 2009 WHY MEXICO? LONG TERM FUNDAMENTALS WHY MEXICO? Large and growing number of foreign companies in Mexico hshhdhwhdiqhw 27.5 22.3 FDI in bn 17.6 15.1 9.7 10.1 700 14.2 13.6 12.4 19.3 15.3 627 23.3 19.618.9 Mining companies 600 Empresas Mineras 18.5 15.0 500 400 390 375 300 265 257 204 200 143 100 481 Proyectos activos 156 214 168 74 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 0 2003 2004 2005 2006 2007 2008 WHY MEXICO? It’s an open economy with 12 FTA with 44 countries… AELC FTA:Switzerland, Liechtenstein, Norway & Island Negotiation: November 1, 2000 NAFTA: Entry into force: Jan. 1, 1994. FTA Bolivia: Entry into force: Jan. 1, 1995. UE FTA: Entry into force: July 1, 2000. FTA Israel: Entry into force: July 1, 2000 NT FTA (North Triangle): Guatemala, Honduras & El Salvador Entry into force:Jan. 1, 2001. FTA Chile: Entry into forcer: Jan. 1,1992. FTA Nicaragua: Entry into force: July 1, 1998. FTA Colombia & Venezuela (G3): Entry into force: Jan. 1, 1995. FTA Costa Rica: Entry into force: Jan 1, 1995. FTA Japan 2005 …. a strong commitment with Free Trade WHY MEXICO?... … because of NAFTA INVESTMENT PROTECTION IP RIGHTS PROTECTION ACCESS TO US MARKET DISPUTE RESOLUTION WHY MEXICO? It’s become highly integrated to the US economy… Trade $366bn/year Trade Investment Manufacturing Labor Tourism Investment +$100 bn-10y. Manufacturing = companies Labor $23 BN/year Tourism 18 m a year … a more trusted and well known destination for doing business and investment WHY MEXICO? Proximity to the U.S. Competitive and skilled labor force Stable Economic Environment Growing Domestic Market Familiar Business Culture Lower tranportation costs Quick response -----------------------------Skilled and hardworking people -----------------------------Inflation under control Low Country Risk -----------------------------100+ M people Growing middle class Young population More credit available MEXICO’S PERSPECTIVES New Economic Environment Risk Aversion Logistics Efficiencies Market Cost Reductions Proximity to the U.S. NAFTA IP Protection Competitive and skilled labor force Stable Economic Environment Growing Domestic Market … Mexico’ advantages make it a great destination for business Thank you !!!