Download REPORT ON CANADA`S TRADE WITH MEXICO, Perry Giagos

North America and Global Economy
Course Number CPL2-561-781
Canada-Mexico Trade
Overview
Presented to: Professor Kenneth N. Matzirionis
March 11,2004
Perry Giagos 118614636
Saleh Alhajkhalil 110151566
Table of contents
Mexico-general overview-country profile
Geographic……………………………………………………….2
Population………………………………………………………...2
Political……………………………………………………………3
Economic………………………………………………………….4
Canadian trade relations with Mexico………………………….6
Overall Mexican trade performance………………………….…8
Canadian-Mexican trade performance………………………….9
Canadian FDI in Mexico…………………………………………9
Future potential for Canadian Mexican relations………………11
Issues for Mexico………………………………………………….12
Out look for Mexican economy and trade………………………15
Bibliography………………………………………………………18
Appendix
Figure 1-Mexican Exports by Sector ………………………………………..20
Figure 2-Canadian Merchandise Imports from Mexico…………………….20
Figure 3- Canadian Merchandise Exports to Mexico………………………..21
Figure 4- Distribution of Canada’s FDI stock in Mexico……………………21
Figure 5-Canadian FDI stock in Mexico………………………………………22
Figure 6-Canada-Mexico Merchandise Exports & Imports………………….22
Figure 7-Canada-Mexico Trade in Goods and Services………………………23
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Mexico General Overview-Country Profile
Geographic
Mexico is located in North America sharing a common border with the United
States to the north and Guatemala to the south. The entire region covers
approximately 1.9 million square kilometers and currently enjoys a coastline that
is the second longest in the Americas after Canada.
Population
The current population of Mexico stands at 101 million making it the largest
Spanish speaking country in the world and the largest country in Latin America
after Brazil1. Like similar countries in the developing world, Mexico currently has
a youthful segment of the population. According to recent estimates, over 50% of
the population is less than 21 years old. Unlike these same developing countries,
the rate of Mexico’s demographic growth has decreased from an annual rate of
2.1% in the early part of the 1990’s to 1.58% in the later part of the decade2.
Such trends have appeared more frequently in the developing world and quite
often is an early indication of a country making significant economic progress. In
another sign of progress, Mexican illiteracy levels were almost reduced in half,
from a rate of 14.7 percent in 1985 to 8.6 percent in
2000.
Source: World Bank
Spanish is the predominant language spoken in
Mexico but various other indigenous languages are
Mexico’s Key Information [ Online], Bancomext, Available from: < http:// www.investinmexico.com> [
18 February 2004]
2
Mexico’s Key Information [ Online], Bancomext, Available from: < http:// www.investinmexico.com> [
18 February 2004]
1
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also spoken including Maya and Nahuatl. Other differences are also noted in the
ethnic composition of the country where 60% of the people are of mixed
Amerindian-Spanish descent, 9% are Caucasian and 30% are primarily
Amerindian3.
Political
Mexico, like its neighbor to the north, is a federal republic known formally as the
United Mexican States. It consists of 32 states including the Federal district of
Mexico City. The president of Mexico, along with being the head of state, is head
of the government. He is elected every 6 years by popular vote. The legislative
branch of government consists of a 500 member Chamber of Deputies, elected
every 3 years, 300 from district voting while the balance are chosen by
proportional representation. The other element of the legislative branch consists
of the 128 member senate. All senators serve six year terms. While 96 are
elected by district voting, the balance are chosen by proportional representation.
Vicente’s Fox’s election as president of Mexico marked a turning point in the
country’s history. For the first time in over 70 years, the PRI ( Institutional
Revolutionary Party) passed the reins of power over to another party, the
National Action Party ( PAN). PRI’s tenure in Mexican politics have been
described as a “ perfect dictatorship”. It had the full appearance of a democracy
with all the structures you would find in a democracy but decisions were made by
a limited group with absolute power. The PRI’s influence was pervasive, from the
press corps to compliant trade unions. A gradual liberalization of the Mexican
economy set the stage for PRI’s downfall, a more active political scene along
with a press and trade unions that don’t necessarily follow the government line.
3
The World Factbook: Mexico. [ Online] CIA. Available from: < http://www.cia.gov> [
19 February 2004]
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Economic
Mexico has made significant advances on an economic level since joining
NAFTA in 1994. Among these accomplishments include an income per capita at
$ 5,070 ( 2000 figures), the highest in Latin America4.
.
Source: World Bank
GDP as a whole increased 266% from 173.7 billion
dollars in 1982 to 637 billion dollars in 20025.
Mexican liberalization in trade has led to annual GDP
growth rates of 3.2% between 1992-2002. During the
pre-NAFTA era of 1982-1992,annual GDP growth
rates averaged only 1.9%6.
From an inflation standpoint, Mexico endured inflation rates as high as 58.9% in
1982 but has since maintained control over inflationary spirals averaging 10.7%
from 1998-20027. The latest estimates reveal inflation to be at the 5% level. For
most observers, it appears the Mexican economy is finally achieving congruence
with the rest of the North American market.
An overview of the Mexican economy reveals a country that has lessened its
dependence on agriculture and is now gradually shifting to a service level
4
Country brief- Development progress. [ Online] World Bank. Available from: < http://
www.worldbank.org> [ 19 February 2004]
5
Mexico at a glance. [ Online] World Bank. Available from : <
http://wwwworldbank.org> [ 19 February 2004 ]
6
Mexico at a glance. [ Online] World Bank. Available from : <
http://wwwworldbank.org> [ 19 February 2004 ]
7
Economist Intelligence Unit : Mexico Fact sheet, September 29,2003, [ Online], The
Economist. Available from: < http:// www.economist.com> [ 19 February 2004]
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economy. Agriculture now comprises 4% of GDP down from a high of 8.1% in
1982. Industry has shown a similar decline from 33.4% in 1982 to 26.6% in 2002.
The greatest growth is found in the service section of the economy where it led
the economy at 58.4% in 1982 to 69.4% in 20028. This trend is commonly seen
in more highly developed economies where services now play a larger role in the
economy. Mexico, like other economies, is not immune to this global business
trend.
While the Mexican economy has demonstrated a vitality unlike other nations,
certain deficiencies are evident that have motivated the government into action.
For one, while Mexico is only dependant on agriculture for 4.0% of GDP, Over
23% of the total labor force is employed in this sector. Concerns about the state
of this sector including the question of efficiencies pushed the government to
protective measures including drafting a 20% tax on U.S corn syrup which
competes against Mexican sugar. Unemployment at 2.7% in 2002 as opposed to
2.51% in 1999 is nonetheless understated due to existing migration patterns to
the U.S and a serious underemployment problem in the Mexican economy9.
Government influence in the Mexican economy is still at high levels stifling
potential private initiatives. Government consumption stood at almost 12% of
GDP compared to 11% in1999, relatively unchanged over this time frame.
Similarly, very little impact was made on the public debt-it stood at almost 23% in
2002 compared to 22% ( percentage of GDP)10. A significant effect of this is the
8
Mexico at a glance. [ Online] World Bank. Available from : <
http://wwwworldbank.org> [ 19 February 2004 ]
Shilling, G. “ The Protectionist threat”, Forbes, [ Online] November 24,2003. Available
from:< http://www.forbes.com > [ 19 February 2004]
9
10
Economist Intelligence Unit : Mexico Fact sheet, September 29,2003, [ Online], The
Economist. Available from: < http:// www.economist.com> [ 19 February 2004]
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government’s reluctance to divest itself of certain sectors in the economy
including electricity and oil. The government generated over 32.5% of revenues
from the oil sector in 2000, a smaller historical share but still significant11.
Canadian trade relations with Mexico
Prior to the introduction of NAFTA, Canadian-Mexican relations were friendly but
little was achieved in terms of trade. This was primarily for a number of reasons
including the language/cultural barriers12. Canadian businesses obviously
migrated to business opportunities south of the border where cultural similarities
proved too great a magnet to ignore. Another reason was the lack of incentives
by many Canadian manufacturers to seek Mexican channels since many
Canadian industries were protected by high tariffs and quotas and felt minimal
pressure from low-cost manufacturers13.
Events began to change in the late 80’s and early 90’s when Canadian industries
began to realize that they were facing serious competition in the auto sector from
Mexican based companies. The import of auto parts into the U.S from Mexico
rose at a much higher rate of 220 percent from 1985-1988 compared to
Canadian import rates of 18.4 percent during this same period14. Although not
the main reason for the drafting of NAFTA, this most certainly provided a boost to
11
Economist Intelligence Unit : Mexico Fact sheet, September 29,2003, [ Online], The
Economist. Available from: < http:// www.economist.com> [ 19 February 2004]
Lynn, M. “ Canadian business in Mexico: The quiet past and burgeoning future”,
Southwest Journal of Business and Economics, [ Online ] Spring 1992. Available from :
PROQUEST [ 8 February 2004]
12
Lynn, M. “ Canadian business in Mexico: The quiet past and burgeoning future”,
Southwest Journal of Business and Economics, [ Online ] Spring 1992. Available from :
PROQUEST [ 8 February 2004]
13
Lynn, M. “ Canadian business in Mexico: The quiet past and burgeoning future”,
Southwest Journal of Business and Economics, [ Online ] Spring 1992. Available from :
PROQUEST [ 8 February 2004]
14
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those arguing for a North American accord. There is no question that the
relationship between Canada and Mexico has changed since the inception of
NAFTA. Canadian exports to Mexico have increased by 153% since 1994
whereas Mexican exports to Canada have increased by 225% during this same
period. Canada is the second largest market for Mexican exports and Mexico as
a whole is now Canada’s eight largest trading partner15.
Beyond the issue of trade, Canadian and Mexican authorities have cooperated
on a number of issues where they share common interests. Canada and Mexico
shared the same platform recently in challenging the U.S on a number of foreign
policy issues including the war in Iraq and the controversial Helms-Burton act
with regards to Cuba. Canada has also been very influential in assisting Mexico
with debt reduction issues, e-government and the creation of a functioning social
security system. The expansion of Canada-Mexican relations have included the
inauguration of a seasonal guest worker program for Mexicans in Canada
primarily in the agricultural, meatpacking and tourism sectors.
The overall relationship between Canada and Mexico has expanded enormously
since the inception of NAFTA on both the political and economic level. To
underscore this changing relationship, Export Development Corporation of
Canada, a crown corporation, opened an office several years ago in Mexico City
and will now open several other branches in Mexico to assist export oriented
Canadian operations in winning new business deals16. Of course, the relationship
between Mexico and Canada has moved beyond being bilateral one to one
involving Canadian provincial governments in trade. These governments have
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
15
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
16
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recognized the value of promoting trade and investment opportunities for their
own individual regions. Many of these governments have set up individual
provincial trade offices in Mexico to promote these individual objectives. While
some may argue there might be duplication of efforts in these trade pursuits, the
more likely outcome is an enhanced image for Canadian companies and
products in Mexico.
Overall Mexican trade performance
Mexico is one of the largest trading nations in the world ranking seventh
worldwide recently and first in the Latin American region. Mexico’s trade
liberalization strategies have resulted in a fourfold increase in exports from $41
billion U.S in 1990 to $158 billion in 2001. Imports have also risen substantially
over this period from $42 billion to $174 billion17. Beyond the introduction of
NAFTA, this success is due primarily to the government’s efforts to expand
regional trade agreements. To date, Mexico has signed 32 free trade
agreements, more than any other nation in the world. These agreements by
Mexico were realized with many of its Latin American neighbors, the European
Union and Israel18. The government’s main aim and objectives of such treaties is
to ensure markets are readily available for Mexican exports.
The effect of this trade liberalization strategy has had a significant impact on the
structure of the Mexican economy. For one, export activities are no longer driven
solely by large multinationals or maquiladoras. In fact, mid-sized and smaller
Mexican based companies are playing a larger role in generating export revenue.
Exporters accounted for more than half of the increase in Mexico’s real GDP
from 1993 to 2001 and generated more than half of the new jobs created. Finally,
Mexico’s integration to the global economy. [ Online]. The NAFTA office of Mexico in Canada.
Available from: < http://www.nafta-mexico.org> . [ 18 Febraury2004]
17
Mexico’s Key Information [ Online], Bancomext, Available from: < http://
www.investinmexico.com> [ 18 February 2004]
18
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the export driven strategy provided an opportunity for Mexico to diversify its
economy on a geographical basis expanding opportunities for all regions of the
country and not solely the larger cities and border areas19.
Canadian-Mexican trade performance
Since the inception of NAFTA, Mexico has become Canada’s main trading
partner in the Western hemisphere after the United States. Canadian exports to
Mexico have increased since 1989 yet imports have increased at a much higher
rate. Statistics as of 2001 reveal that Canada currently has a trade deficit of $9.9
billion dollars with Mexico ( see figure 7) .
An overview of Canadian exports to Mexico indicate that agricultural products
account for the largest share of Canadian exports to Mexico increasing to 31.3
percent in 2002. Agriculture and transportation equipment were the only major
categories of products to see their share increase from 1989 ( see figure 3). The
greatest share of Mexican exports came in Machinery electronics and
transportation equipment. Both product categories increased their total share
from 65 percent in 1989 to 75% in 200220 ( see figure 2). An interesting point is
that Canada recorded a trade deficit in each product category with the exception
of agriculture.
Canadian FDI in Mexico
Mexico’s integration to the global economy. [ Online]. The NAFTA office of Mexico in
Canada. Available from: < http://www.nafta-mexico.org> . [ 18 Febraury2004]
19
20
Canada-Mexico: Trade and Economic Relations, March 2002. [ Online], Canadian
Department of Foreign Affairs and International Trade, Available from: < http://
www.dfait-maeci.gc.ca/menu-en.asp> [ 18 February 2004]
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The level of FDI in Mexico by Canadian companies has risen dramatically since
1994. At this time, Canada ranked ninth, behind the United States , Netherlands ,
Spain and several other European countries. Canadian FDI in Mexico for 2001
was $865 million for a cumulative total of $3.2 billion ( see figure 5). This growth
made Canada the third highest foreign investor in Mexico in 200121.
A detailed breakdown of this FDI reveals that over half of the investments were in
manufacturing and in particular the automotive sector ( 61.8 percent), followed by
services (19.6 percent) and mining ( 14.5 percent). Figures indicate that as of
2002, 1,259 Canadian companies were registered in Mexico.
Canadian companies have begun to make inroads in areas other than the
manufacturing sector. Onex corporation, Canada’s fifth-largest company, recently
acquired Cimex enabling it to introduce Canadian standards to the Mexican
multiplex industry. Scotia Bank made a significant investment in Inverlat,
Mexico’s no.5 bank22. Both cases demonstrate that Canadian businesses are
identifying value in various Mexican sectors other than the traditional
manufacturing sectors.
Other sectors, known to be more lucrative to Canadian investors, may be a more
difficult arena for possible FDI. Canadian companies are eager to tap into
Mexico’s vast energy resources. Many predict that Canadian companies could
invest as high as 4 billion U.S dollars in the Mexican energy sector if lobbying
efforts succeed23.
21
Canada-Mexico: Trade and Economic Relations, March 2002. [ Online], Canadian
Department of Foreign Affairs and International Trade, Available from: < http://
www.dfait-maeci.gc.ca/menu-en.asp> [ 18 February 2004]
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
22
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
23
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.
.
Future potential for Canadian-Mexican relations
For many Canadian companies, Mexico offers them opportunities to capitalize on
a developing market where infrastructure is still in a rudimentary stage as
opposed to the Canadian market where market saturation has been reached in
several industries. The Mexican market also offers these same companies a
competitive investment environment that provides them with the ability to remain
viable in the global marketplace. Textiles and the shoe industry are some are
some areas of Canadian industry that would have likely faltered without a NAFTA
agreement.
For Mexico, the benefits include greater FDI from Canada into Mexico along with
technology transfer in key areas including oil and natural gas where Canada
currently enjoys a leadership position. Of course, to the detriment of Canadian
investors, both of these sectors are currently off-limits to foreign investors. The
Mexican government, in the case of the energy sector, has now begun to
understand that it has limited financial means and the technological know-how to
tap into undeveloped energy resources. The possibility exists that demand will far
outstrip supply in terms of energy with regards to domestic consumption needs.
This should encourage Mexican authorities to solicit support from Canadian
companies. Canadian companies, encouraged by these trends, are lobbying the
Mexican government to open up these markets such as natural gas where
reserves are expected to be much higher than Canada’s known reserves, the
world’s 3rd largest producer. Canadian executives, appealing to Mexican
nationalism and pride, have promised to secure for Mexico a leading role in the
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world for natural gas ahead of Canada if these sectors are ultimately
liberalized24.
Issues for Mexico
While Mexico has made significant inroads in many aspects of its economy over
the last 10 years, significant issues remain that may ultimately hinder future
performance.
One of these issues brought forward recently by the World Bank is Mexico’s lack
of a program to harness the talents and energies of its people. More than 45
million Mexicans are poor living on approximately $2 a day while 10 million of this
segment live in extreme poverty at less than $1 per day25. A significant
investment in health and education is being promoted to address the needs of
this undervalued segment of Mexican society.
Other concerns include the lack of efficiencies in Mexican agriculture. Without a
restructuring of this sector, the likelihood of being overwhelmed by global market
forces is no longer a remote possibility.
Additional issues of concern include an urgent need for reforms in Mexico’s
industrial development strategy. While greater inroads were made by small and
medium sized Mexican companies to join the global economy, a far higher
percentage of output is still generated by multinationals or larger Mexican
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
24
25
Country brief- Development progress. [ Online] World Bank. Available from: < http://
www.worldbank.org> [ 19 February 2004]
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corporations26. The mentoring of small and medium sized Mexican companies
would more likely set the stage for a new Mexican-led prosperity. Of immediate
concern in terms of industrial development is the current transport infrastructure.
The road network in Mexico has long been neglected and currently the situation
is deteriorating. The investment community always considers infrastructure as a
key factor when deciding on conducting trade or investing. This area needs to be
addressed by Mexican authorities to ensure that Mexico remains a viable
investment location.
Other areas of concern for Mexico involve reforming the financial sector. After the
1994 peso crisis, action was taken by the government to address weaknesses in
the financial sector but work remains to be done in terms of providing a
framework to support international capital transactions. Barriers to foreign
investment and more specifically in the energy sector will have serious
repercussions since without any additional capital infusion, minimal exploration
can be conducted to expand resources to meet Mexico’s growing energy needs.
The questions many ask is whether the government will work up the will to
challenge domestic critics, overcome nationalist objections and overhaul the
constitution to grant foreign investment rights.
Another area for improvement required of Mexico is in the continuing struggle
with corruption. In the most recent corruption index of 2003, Mexico ranked 64 th
in the world with 1 indicating least amount of corruption and 100 being the
highest level. Surprisingly, Mexico has a higher level of corruption compared to
other developing or even third-world nations. Canada experienced this level of
Mexican corruption when in 1997, Bombardier lost a bid to build subway cars for
Mexico City. There were strong suspicions of corruption within Mexican
government levels and ultimately led to a diplomatic incident when the Canadian
ambassador, Marc Perron, angrily and publicly denounced Mexican government
26
Country brief- Development progress. [ Online] World Bank. Available from: < http://
www.worldbank.org> [ 19 February 2004]
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corruption27. Perceived or real corruption can have a negative impact on trade
and foreign investment in Mexico if foreign investors believe that the playing field
is not level for all parties.
Finally, a more ominous concern for Mexico is the growing threat it faces from far
Eastern competitors and in particular, China. Between January 2001 and
December 2002, the maquiladora sector lost 230,000 jobs out of a total of 1.3
million as hundreds of companies sought lower cost centers in Asia28. Of course,
labor costs were not the sole driving issue when deciding on moving to China. A
lack of tax incentives and the cost of energy were concerns raised by many
foreign companies. When Flextronics, a major contract manufacturer, opened a
factory in Guadelajara in 1997, it spend almost $1.5 billion of its own money to
build a power plant to service company needs29. No financial grant or tax benefit
was provided by the Mexican government to accommodate Flextronics. Many
other companies are typically paying 10-12% more for energy than in other
countries. Currency volatility has also led many exporters to consider other fertile
grounds for investment. The Mexican peso is a floating currency and has
demonstrated some volatility in the last couple of years. The peso increased 13%
in value between 1999 and April 2002 and then proceeded to decline by 13% a
year later. This decline should have encouraged exporters who typically value a
cheaper currency but the effect was quite the opposite. Other issues that foreign
investors and in particular exporters have raised revolve around the issue of a
skilled, highly educated workforce, unlike China, and a greater level of red tape
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
27
Dolan, K. “ So much for NAFTA”, Forbes, [ Online], June 6,2003. Available form: <
http://www.forbes.com> [ 19 February 2004]
28
Dolan, K. “ So much for NAFTA”, Forbes, [ Online], June 6,2003. Available form: <
http://www.forbes.com> [ 19 February 2004]
29
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and bureaucracy that for many companies ultimately raises the costs of doing
business.
Outlook for Mexican Economy and Trade
A significant amount of work remains for Mexico in terms of economic
development but an accelerating agenda of trade liberalization will certainly
provide fuel to keep economic growth on track. For many free trade advocates,
Mexico is now serving as a role model for other aspiring nations30. In turn,
Mexico is a strong proponent of the World Trade Organization and a primary
backer of the Dohn development agenda talks.
Mexico has already begun steps to action areas of structural weaknesses in the
Mexican economy. For one, the realization has begun to set in that Mexico can
no longer count on cheap labor as an incentive to draw in foreign investors and
the focus has shifted to skilled workers. The automotive sector is one area where
Mexico has attracted a greater portion of investment in such areas as design and
engineering centers where technical know-how is more an issue than the
availability of a cheap labor force31. On the issue of administrative red-tape,
Mexican authorities are currently streamlining their laws to address the
maquiladoras concern in order to stem the outflow of jobs to China. In other
segments such as energy requirements and more specifically electricity, the
Mexican government introduced a plan to build 26 electricity plants throughout
the country financed primarily by foreign investors with the aim of meeting the
needs of corporate and industrial customers32.
30
Trade Policy Review: Mexico, April 2002. [ Online], World Trade Organization,
Available from: < http://www.wto.org> [ 18 February 2004]
Dolan, K. “ Some plants are back from China”, Forbes, [ Online], May 12,2003. Available from: <
http://www.forbes.com> [ 21 February 2004]
32
Dolan, K. “ Some plants are back from China”, Forbes, [ Online], May 12,2003. Available from: <
http://www.forbes.com> [ 21 February 2004]
31
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The oil sector remains a controversial issue in Mexico and the likelihood of this
sector opened up to foreign investors in the future is remote. Pemex, Mexico’s
state-owned oil and gas giant, has found an innovative way to get around
Mexican constitutional law barring foreign investment in the oil sector by offering
foreign firms service contracts in the areas of surveying/drilling and paying them
a set service fee. While not exactly meeting all their expectations, these reforms
offer a potential 70 oil companies the opportunity to bid on $8 billion worth of
contracts in a market left untapped for the last 64 years33. On the sensitive issue
of corruption, Mexico’s passage of the Federal Transparency and Access to
Public Government Information Law authorizes federal agencies to publish on a
regular basis a wide range of internal reports. The objective of this law is to
improve transparency in the Mexican government and ultimately lift the veil of
secrecy that has surrounded Mexican political affairs over the last 70 years34.
Corruption usually finds the perfect environment to fester and grow under
secrecy. This law, as a first step, will attempt to improve on Mexico’s dismal
record on corruption.
Canada will continue to make inroads in Mexico solidifying the Canada-Mexico
relationship to new levels. Canada is playing a major role in the Mexican
telecommunications sector where Canadian companies such as Bell Canada
International, Nortel and SR Telecom are all actively working with Mexican
companies such as Axtel and Telmex to upgrade and modernize the country’s
outdated telecommunications system35. From consumer foods to auto parts,
Dolan, K. “ Some plants are back from China”, Forbes, [ Online], May 12,2003. Available from: <
http://www.forbes.com> [ 21 February 2004]
33
Mackenzie, C. “ Mexico opens up”, Canadian Business, [ Online], May 12,2003.
Available from: < http://www.canadianbusiness.com> [ 21 February 2004]
34
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
35
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Canadian companies have joined forces with their Mexican counterparts to
service an entirely new Mexico. A nation with increasing confidence and a
prosperous future built on a new foundation of liberalized, free trade.
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Bibliography
Canada-Mexico: Trade and Economic Relations, March 2002. [ Online], Canadian
Department of Foreign Affairs and International Trade, Available from: < http://
www.dfait-maeci.gc.ca/menu-en.asp> [ 18 February 2004]
Country brief- Development progress. [ Online] World Bank. Available from: < http://
www.worldbank.org> [ 19 February 2004]
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Economist. Available from: < http:// www.economist.com> [ 19 February 2004]
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[ 19 February 2004 ]
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Canada. Available from: < http://www.nafta-mexico.org> . [ 18 Febraury2004]
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www.investinmexico.com> [ 18 February 2004]
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February 2004]
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Available from: < http://www.wto.org> [ 18 February 2004]
Dolan, K. “ Some plants are back from China”, Forbes, [ Online], May 12,2003.
Available from: < http://www.forbes.com> [ 21 February 2004]
Dolan, K. “ So much for NAFTA”, Forbes, [ Online], June 6,2003. Available form: <
http://www.forbes.com> [ 19 February 2004]
Fox, C. “ What about Canada? NAFTA’S northern member is making inroads into
Mexico”, Business Mexico, [ Online] September 2002. Available from: RDS Database [ 8
February 2004]
Lynn, M. “ Canadian business in Mexico: The quiet past and burgeoning future”,
Southwest Journal of Business and Economics, [ Online ] Spring 1992. Available from :
PROQUEST [ 8 February 2004]
Mackenzie, C. “ Mexico opens up”, Canadian Business, [ Online], May 12,2003.
Available from: < http://www.canadianbusiness.com> [ 21 February 2004]
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Shilling, G. “ The Protectionist threat”, Forbes, [ Online] November 24,2003. Available
from:< http://www.forbes.com > [ 19 February 2004]
- 19 -
Figure 1: Mexican Exports by Sector 1983-2001
Source: NAFTA-Mexico.org
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
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