Diapositiva 1

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Mexico a Land of Opportunities
Blanca Villarello Landa
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C o n t e n t s
1. Productive potential of Mexico
2. Agricultural exports to the World
3. Mexico European Union Foreign Trade
4. Business Investment Opportunities in Mexico
5. Government Support for Agribusiness
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1. Productive potential of Mexico
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MEXICO

• Land 1,972 million square Km. Its the 14th
  largest country in the world and the 5th largest
  in the Western Hemisphere.

• Population 106 million

• Political System Constitutional Federal
  Republic, consisting of 31 States and 1 Federal
  District.

• Economy No. 1 economy in Latin America. One
  digit inflation and sustained growth for the last
  six years.

• Climate Between 10C and 26C in 93 of
  territory.

Sociodemographic and economic conditions make
MEXICO a land of opportunities for business and
foreign investment
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Agricultural GDP
During the first three months of 2005, the
agricultural GDP grew 10.6 against last year due
to an increase in some crops, like maize,
mangoes, sesame, frijol, grape, avocado, banana,
lemon, apple, watermelon, and sorghum.
Durante los primeros tres meses de 2004, la
economía creció un 3
.7 por

ciento, mientras que el producto agropecuario de
México creció 4
.6 por
de 6.6 por
ciento.
JUNIO
10.6
AGRICULTURAL GDP
PIB AGROPECUARIO
JULY - SEPTEMBER
NATIONAL GDP
PIB NACIONAL
3.3
ENERO
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Products with High Potential (2004)
Area Cultivated
Production Value
Fruits and vegetables represent only 9 of the
cultivated area and generate over 39 of the
total value in this sector.
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(No Transcript)
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2. Agricultural exports to the World
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Mexican agrifood exports are growing
fast(millions of dollars)
13,592
367
2,910
2005
1990
Source SAGARPA with data from SE (Secretaria de
Economia)
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World market potential for mexican Agrifood
products
Free Trade
Population in millions
Per Capita Income
Agreements
(Average in dollars)
North America
300
24,919
Central America
36
2,361
South America
126
2,690
Europe
450
30,239
Asia
133
26,824
TOTAL
1,045
17,407
Investing in Mexico means the opportunity to
access a global potential market
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Top worldwide Mexican fruit vegetables exports
(Millions of dollars)
Mexico holds one of the worlds first places as
exporter of these products
Source FAOSTAT Commodity Trade Statistics
Data base
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3. Mexico European Union Foreign Trade
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Mexican exports to the European Union (Million
of euros)
Source EUROSTAT Jan-Nov
Mexican food exports to the EU showed an increase
between 1995-1997 . Through 1998 to 1999 the
exports value showed a drastic decrease. During
2000 Mexican exports started to grow as a result
of the come into force of the FTA. However due to
the slowdown in the economic activity of the
European Union and the increase in the
unemployment mexican exports have been affected.
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Mexican vegetables fruits products are present
in european market
SHARE OF MEXICAN EXPORT PRODUCTS IN THE EUROPEAN
UNION AGRICULTURAL IMPORT MARKET
Europeans like Mexican agricultural products
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Tariff Reduction Schedule Under FTA Mexican
exports to the EU
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Tariff Reduction Schedule Under FTA Mexican
exports to the EU
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4. Business Investment Opportunities in Mexico
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Business Opportunities

• Green coffee pays no duties under the FTA.
  Decafeinated, roasted and ground coffees pay
  import duties between 3 and 7, this should
  encourage exports of added value products. There
  is an important market opportunity for organic
  coffee.
• Tropical and semitropical fruits. From the start
  of the FTA such products as guava, mango, and
  papaya are subjet to 0 duties. In July 2003
  grapefruit and limes added to the list.
• Avocados There is a quota for 20,000 tons at 0
  import duty for the june-september period. A
  tariff reduction schedule in 8 years applies for
  avocadoes exported from December 01 to May 31st.
• Preserved fruits and vegetables A tariff
  reduction schedule applies and all import duties
  will gradually reach 0 in a period no longer
  than 10 years.

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Business Opportunities

• Fruit juices are gradually being subject to
  tariff reduction and by the year 2008 all
  tropical fruit juices will reach 0 import
  duties.
• Bananas From the first of January change to
  regime of unique tariff (176 euros /ton).
• Pectine There is a quota for 200 tons at an
  import tariff of 2.
• Frozen concentrated orange juice. Mexico and the
  EU agreed a quota of 30,000 tons with
  preferential access to the EU with an import duty
  not higher than 25 of the current GSP duty.
  There is a quota for 30,000 tons at an import
  tariff of 2.9 .
• These conditions open great investment
  opportunities considering that Mexico is an
  important producer of fruits and vegetable
  juices. Business opportunities are opened in
  both the manufacture and distribution sectors.

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Business Opportunities

• Tuna Mexico is one of the main producers of
  yellow fin tuna. There is a possibility of
  importing frozen tuna loins at 0 duty and canned
  tuna on a quota with a reduced tariff.
• Table grape Mexico has a commercial advantage as
  we have availability of this product during the
  months of may-july before the European season
  starts.
• Grapefruit There is a window mainly for red
  grapefruit during the months of september to
  november.

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Business Opportunities
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Advantages of the Mexican Exportable Supply

• Opportunity to produce practically year-round.
• Wide selection and quantity of products.
• Good Agricultural Practices and Good
  Manufacturing Practices.
• Availability of diverse products, including
  organic specialties and greenhouse.
• High production season in Mexico while high
  demand for imported products in Europe

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. . . Also, Mexico is Attractive for Foreign
Investment

• Specially there is room for strategic alliances
  in
• Distribution channels (using tariff reductions
  available under EU-Mexico FTA and other 10 FTAs,
  specially NAFTA).
• New crops development.
• Post harvest management.
• Ornamentals and flowers production.
• Greenhouses and irrigation systems.

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Mexico is one of the world-wide leaders
exporting quality fruits and vegetables
Avocado Onion Mangoes Papaws Asparagus
Egg plant Broccoli Strawberry Garlic Coffee Spice
s
Pepper Lemon Tomato
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2
3-5
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Diversifications of the Agrifood Exports
In 1990 five products contributed 50 of the
exports. For 2004 are 14 products.
Beer (12.5) Avocados (8.8) Tomatoes
(8.6) Tequila (5.8) Coffee (4) Bell Pepper
(4) Cucumbers gherkins (3.3) Onion (2) Meat
of swine (2) Mangoes (1.4) Watermelons
(1.45) Asparagus (1) Grapes (1) Melon y water
melon (1)
2004
Tomato (16) Meat (13) Coffee (12) Beer
(5) Bell Pepper (4)
1990
50
50
Source SAGARPA with data from FAOSTAT
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Market Opportunities
United Kingdom Nontraditional Agro products,
Avocado, Coffee, Preparations basis of coffee,
Onion, Mushrooms, Dates, Asparagus, Others
Fruits, Fruits vegetables organic origin
products, Grass Spices, Lemon, Mangoes, Fruit
grape and Grape. Cocoa, Beer, Tobacco, Tequila y
Wine. Cut Flowers.
Holland Nontraditional Agro products, Avocado,
Coffee, Onion, Dates, Asparagus, Others Fruits,
Fruits vegetables organic origin products,
Grass Spices, Lemon, Mangoes, Fruit grape and
Grape. Beer, Tequila and Wine. Shrimps. Cut
Flowers, Processed Flowers and Foliage.
FRANCE Nontraditional Agro products, Avocado,
Garlic, Coffee, Onion, Mushrooms, Dates,
Asparagus, Others Fruits, Fruits vegetables
organic origin products, Lemon, Litchi, Mangoes
and Fruit grape. Beer, Tequila and Wine. Tuna,
Shrimps, Lobster and Squid. Cut Flowers.
GERMANY Nontraditional Agro products, Avocado,
Coffee, Preparations basis of coffee, Onion,
Dates, Asparagus, Others Fruits, Fruits
vegetables organic origin products, Grass
Spices, Lemon, Mangoes, Fruit grape and
Grape. Cocoa, Coffee, Beer, Tobacco, Tequila y
Wine. Shrimps. Cut Flowers, Processed Flowers
and Foliage.
SPAIN Nontraditional Agro products, Avocado,
Asparagus, Others Fruits, Fruits vegetables
organic origin products, Lemon and
Mangoes. Cocoa, Coffee, Beer, Tobacco, Tequila
and Wine. Tuna, Shrimps, Squid and Sardines. Cut
Flowers.
ITALY Nontraditional Agro products, Avocado,
Coffee, Asparagus, Others Fruits, Fruits
vegetables organic origin products, Grass
Spices, Lemon and Mangoes. Tequila. Tuna and
Shrimps.
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5. Government Support for Agribusiness
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Mexico Supreme Quality
Seal Mexico Supreme Quality differentiation
of products based on their superior quality . . .

• Any product carrying this seal has fulfilled the
  higher international quality requirements.
• A certifying company guarantees this fulfillment.
• The seal is a symbol that differentiates Mexican
  products with a higher added value.
• This seal represents a certified quality
  guarantee.

Mexico Supreme Quality it really is the right
way to go!!! The Mexican Government backs it up!
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Introducing Mexico GAPBenchmarking
Food Safety Quality Standards


Certification Bodies
Certification Bodies Accreditation Criteria

Specific Certification for International Market
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Introducing Mexico GAPLaunching
We are expecting to finalize that's process by
the end of february 2006, and we are proud to
after safe and quality products to the european
supermarkets and consumers certified and
recognized.
Closing Remark
Food Safety and Quality Standards Harmonization
is an opportunity not only for growers to get a
more competitive and recognized product in the
international market, but also for wholesalers,
supermarkets and consumers to get a safer and
premium food supply.
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Mexican Agriexporters Directory CNA-Mexbest
It is a commercial tool where the international
buyer interested in quality Mexican products can
find reliable suppliers.
http//www.mexbest.com.mx.