About Mexico
Mexico Land of Opportunities
NAFTA, the free trade organization involving Mexico, USA and Canada, provides an important basis for growth, and has positioned Mexico as a strategic site to reach the North American markets. Mexico offers excellent business opportunities.
| Indicator | Numbers |
|---|---|
| Area | Total: 1,972,550 km2 Land: 1,923,040 km2 Water: 49,510 km2 |
| Borders | Total: 4,353 km Belize 250 km Guatemala 962 km EE.UU. 3,141 km |
| Population | 109, 955,400 (July 2008 est.) |
| GDP | US$ 617.773 millions |
| GDP Growth Rate | 3.3% |
| Exhange Rates | 1 mx peso = 0.06529 us dollar 1 mx peso = 6.42673 yen 1 mx peso =0.05136 euro |
With over 100 million inhabitants, Mexico represents a huge market at the moment and a promise of a much larger one, given its steady growth rates in income and population.
International Free Trade Agreements signed by Mexico
| Treaty | Countries | Date Published D.O.F. | Enforcement Date |
|---|---|---|---|
| North American Free Trade Agreement | USA and Canada | December 20th, 1993 | January 1st, 1994 |
| Free Trade Agreement Group of 3 | Colombia | January 9th, 1995 | January 1st, 1995 |
| Free Trade Agreement Mexico - Costa Rica | Costa Rica | January 10th, 1995 | January 1st, 1995 |
| Free Trade Agreement Mexico - Bolivia | Bolivia | January 11th, 1995 | January 1st, 1995 |
| Free Trade Agreement Mexico - Nicaragua | Nicaragua | July 1st, 1998 | July 1st, 1998 |
| Free Trade Agreement Mexico - Chile | Chile | July 28th, 1999 | August 1st, 1999 |
| Economic Association and Policy Cooperation Agreement. Mexico – European Union | European Union | June 26th, 2000 | July 1st, 2000 |
| Free Trade Agreement Mexico - Israel | Israel | June 28th, 2000 | July 1st, 2000 |
| Free Trade Agreement Mexico – North Triangle | El Salvador, Guatemala and Honduras. | March 14th, 2001 | March 15th, 2001 with Salvador and Guatemala and June 1st, 2001 with Honduras |
| Free Trade Agreement Mexico – States of the European Free Trade Association. (EFTA) | Iceland, Norway, Liechtenstein and Switzerland | June 29th, 2001 | July 1st, 2001 |
| Free Trade Agreement Mexico - Uruguay | Uruguay | July 14th, 2004 | July 15th, 2004 |
| Agreement to Strengthen the Economic Association with Japan | Japan | March 31st, 2005 | April 1st, 2005 |
| Economic Complementation Agreement Mexico - Mercosur | Uruguay, Argentina, Brazil and Paraguay | July 2000 |
Mexico has signed free trade agreements with over 40 countries, thus easing the way to conduct business here.
The Mexican Agrifood Sector
Mexico produces and ships to the world over 400 different agricultural, fish and livestock products, exporting them to 135 countries, thus becoming an important player in world markets.
As an agrifood leader Mexico is the world's largest producer of avocado, onions, limes, and organic coffee. Is the second largest producer of peppers and papaya, and is among the 3rd and 5th largest producer in the world of strawberries, blueberries, beans, squash, mangoes, corn, honey, oranges, grapefruit, coffee and chickpeas.
The Agrifood and Fishery Exporting Sector
Mexico is one of the lead exporters of agrifoods and fish products, occupying the 10th place among the largest exporters in 2007 (based on the United Nations Commodity Trade Statistics Database)
Main Exporters of Agrifoods and Fish Products, 2007
(Millions of $US)
Mexican fish and agrifood exports had a dynamic growth in the period lasted from 1994 to 2007, having the world's second largest annual average growth rate (AAGR), of 10%. The only country showing a larger AAGR is Romania with 14.5%.
Mexican agrifood products are sold and consumed in 135 countries and have important roles in world markets, as shown in the exhibit.
Position and Destiny of Mexican Agrifoods in World Exports
Source: CNA, with data from Plan Sectorial 2007-2012 de la Presidencia de la República and United Nations Commodity Trade Statistics Database.
Many people believe that the sole destination market for Mexican products is the USA, but facts show us otherwise. Although the United States is our major trade partner, equaling 81% of Mexican agrifood exports, other countries are gaining importance as trade partners as well. Trade with Japan grows consistently and shows a superavit for Mexico. Agrifood trade with Canada has an average growth rate over 20% in the last 5 years, and trade with Russia grew 22% yearly during the last 4 years.
Market diversification for Mexican products has grown 25% in the last 10 years.
A noticeable fact is that since enforcement of NAFTA, Mexican agrifood and fish exports increased fourfold, growing from 3.95 billion dollars in 1993 to 15.1 billion in 2007.
In the first quarter of 2008, exports amounted 6.05 billion, a growth of 12.6% over same quarter in 2007, according to Banco de Mexico.
