According to the National Registry for Foreign Investments from the Federal Ministry of Economy, there are 2,082 Mexican partnerships with American investment on their capital in Nuevo Leon and the investment flow during the period 1999 to 2018 has been of 253,903 million dollars.
The United States has been the main commercial partner in the entity. During the last three years, U.S. participation has increased in percentage terms; for example, in 2017 their economic participation represented 56 % of the Foreign Direct Investment that entered the State with 1,150 million dollars.
The relationship between both parts has been of continuous cordiality and cooperation. Nuevo Leon has the second place in investment destination from that country. Only during the first semester of 2018, Nuevo Leon received 74 % of the total investment from the U.S. registered in 2017.
The predominant sectors of investments from the United States in Nuevo Leon are the automotive, advanced manufacturing, home appliances, food and beverages, logistics, energy, commerce and services.
There are currently 66 projects on portfolio from American origin, which belong to the automotive sectors, home appliances, logistics, Information Technologies, among others. These projects belong to companies that continue assessing Nuevo Leon as destination of their investment. It is anticipated that companies will be making this decision this year and the next one.
“Some of the most representative companies settled here are Mondelez, Caterpillar, Ball, Johnson Controls, Walmart, Niagara, Carrier, Callaway and Navistar,” said Lorenzo Aguilar, undersecretary of Investment and Industrial Development of Nuevo Leon.
Regarding exports, the total production sent to the U.S. exceeded the 29,000 million dollars, where the most highlighted sectors were those of transportation, electric generation equipment and of home appliances.
A total of 43 investment projects of the United States were announced in 2017 which were developed then and in 2018, what brought more than 1,435 million dollars to the entity.
UNDERLINING MEXICO – U.S. RELATION
American Chamber/Mexico (AmCham) has been for 101 years, a key agent on free trade promotion, free competition and business exchange between Mexico and the U.S.
The 1,450 companies present in Mexico City, Guadalajara and Monterrey, contribute importantly to the national social and economic development, as they generate more than 2.5 million direct formal jobs and about six million indirect ones; representing 21 % of the National GDP and 20 % of FDI.
Nuevo Leon represents 9.9 % of exports towards the United States nationally. Mexico as a country exports mainly engine vehicles, data processing units, petroleum raw oils, phone items, televisions, spark plugs cables, malt beer, tequila, bedding items, instruments and medical devices, avocado, raw gold and silver powder and fuel oil to the United States.
Nuevo Leon was the third receptor of foreign investment nationwide between 1999 and 2018. From the historic total, more than 50 % of FDI in Mexico is American. The United States has invested 24,777.7 million dollars in Nuevo Leon during the last 19 years.
“Exports will continue being the main growth lever during 2019. USMCA will be an instrument that will provide certainty to investment and reinforce confidence in Mexico, in turn it will increase the integration of the value chain, mainly for SMEs,” said Marisa Jimenez Segovia, president of AmCham, Chapter Monterrey.
The president added that AmCham has been particularly vocal in encouraging USMCA through their participation in dialogue spaces with business teams, interlocution with decision makers and business groups in Washington. The prompt ratification of the USMCA is important to face the demand of international markets with clear and updated rules, which are considered as necessary and suitable to provide certainty to investment flows.
Among the main challenges that have to be worked inside the bilateral relationship between Nuevo Leon and the United States, the chamber highlights the ratification of the USMCA; steel tariffs; and to continue improving in aspects such as border safety and migration.
“Convinced of that integration between Mexico and the United States is one of the great strengths of Mexican economy, AmCham is an ally of both sides of the border to guarantee commercial flow; promoting USMCA ratification in time and shape; provide continuity to cooperation mechanisms between Mexico and the United States in safety matters and combat piracy; being a common front in legality defense and American investments safety in Mexico; and position the value of commercial integration for both countries,” explained Jimenez Segovia.
Finally, the president assured that due to the proximity between Mexico and the United States and the amount of American companies in Nuevo Leon and the academic and businesses exchanges, there are many similarities in the way of making business, as both parties value honesty and hard work.
“Nuevo Leon has the highest average of people speaking English in Mexico and was qualified as first place in the easiness to make business in Mexico by the World Bank. It is important to take advantage of the easiness of making business in this country and the high life quality in Monterrey,” she said.