The entity has 19 exporting sectors and places products in more than 180 countries
Mexico has a great commerce opening, since it has 12 binding Free Trade Agreement with 46 countries in the world
The current political landscape, in the framework of the negotiations for the North America Free Trade Agreement (NAFTA,) locates the country in a huge area of opportunity: markets diversification, as strategy to carry Mexican products to other latitudes outside North America.
This constitutes a scheme to reduce the dependence towards only one country of block of countries, mitigating risks and economic losses in case of complications in finances from the purchasing entity. It is also a strategy from the private initiative in order to no stopping the country’s growth for political issues.
Since the enforcing of the NAFTA in 1994, Mexico has been benefited on its commerce and economy. Only in 2916, the commercial exchange between Mexico and the United States exceeded the 482 billion dollars.
“There is one Mexico before the Agreement and another Mexico afterwards. Today people is more prepared, there are more universities, more industry, more technology; it is a completely different Mexico,” said Federico Chavez Dominguez, president of Index Occident.
However, before the arriving of a new administration in the United States a juncture is created where it is about to be defined the future of the NAFTA and therefore of the countries that integrate it. Before this scenario, Chavez Dominguez sees an opportunity for the national industry and from Jalisco: “We have to turn and see other markets. This scenario give us a warning, because we were operating so well with the United States and Canada that we enter into a comfort zone and stop being so competitive,” he said.
In this sense, the official considered imperative creating a synergy dynamic with other countries, seeking specializing even more the Mexican workforce to manufacture products with added value and of the highest quality.
Jalisco, exporting power
According to data from the Mexican Business Council for Foreign Trade (COMCE, by its Spanish initials) Occident; state exports have increased despite the political scenario. Miguel Angel Landeros Volquarts, president of this organism, highlighted that Jalisco continues as an exporting power, which despite not being a border State, it has achieved to be positioned thanks to quality products, human talent and innovation approach.
“Jalisco already reflects the exports diversification; our second exports destination is a European country (the Netherlands,) but we have many other options in Africa, Asia, Europe, Central and South America. In the entire world are products from Jalisco,” he said.
The sector leader anticipated that regardless the result of the NAFTA negotiations, the United States and Mexico will continue being commercial partners. Nevertheless, the efforts to be focused in other markets are not ceasing: for this year are planned commercial missions to El Salvador, Costa Rica, Guatemala, Colombia, Peru, India and Portugal.
While, Luis Aguirre Lang, president of the Institute for the Promotion of Foreign Trade for the State of Jalisco (JALTRADE, by its Spanish initials,) said that one of Jalisco strengths are the 19 industrial sectors it has. “Any other state has that diversification in the manufacturing and industry offer,” he said.
Data from ProMexico reports that 972 different products are the ones exiting Jalisco to reach other latitudes worldwide. Almost 60 % of exportation in the entity is of high technology.
Betting on technological development
“Market diversification is fundamental and is one of the strategic lines we have at the Mexican Chamber of Electronics, Telecommunications and Information Technologies (CANIETI, by its Spanish initials),” said Isaac Avila Ahumada, president of such organism West division.
For the electronics and high technology industry, one of the more representatives of Jalisco, is not a new concept seeking markets outside the United States and Canada. Given that many of the companies installed in the area come from Asian and European investments, it is natural seeking customers outside the North American territory.
“We are opening possibilities to enter to markets such as India, Israel and China. Also in an important matter we can promote the Netherlands, Ireland, Sweden and Canada, through commercial missions,” said the president.
Sergio Rios Martinez, Regional Center Occident coordinator at ProMexico, said that there are very active companies seeking alternative markets already in Europe, Africa and Asia, for which they pursuit certifications aimed to abide quality local regulations, sanitarian and logistics also.
“Different Mexican companies are already successfully entering through the Pacific Alliance (integrated with Peru, Chile and Colombia;) they even have opened subsidiaries in these territories to attack the south American market,” he said at the same time he mentioned Canada as another potential market, although with reduced purchase volumes in comparison with the United States.
In Europe, products within the sector, superfoods, pharmaceutical, auto-parts, construction finished materials and everything regarding information technologies and creative industries has a place and good acceptance, said the official. While, Asia demands mainly food and tanned products.
“Another market which we consider could be an excellent alternative is the Halal or Muslim market. This represents 12 % of the total worldwide, this is, about 560 billion dollars,” he mentioned.
Rios Martinez mentioned that the Mexican Industry should pay attention to the new types of consumers, since consumption patterns have changed and this supposes new challenges and business opportunities.
“The Industry should understand that there is a different consumer. Today the figure of Housemen exists, which is a 16 % worldwide. There is also a generational change, therefore attention turns to healthy products and of low fat. When we talk about market diversification, we also have to talk about consumers’ diversification, because consumer has changed,” he explained.
Some ProMexico strategies to promote markets diversification are about business wheels, dual years establishment and promotion of electronic commerce.