|Mexico - Japan Trade and Investment Fact SHEET, JANUARY 2013
- From 2005 to January 2013, Japanese companies’ investments in Mexico accounted more than US$9.6 billion in sectors such as automotive and auto parts, but also electronics, metallurgic and machinery projects, agribusiness, food processing and high technology manufacturing.
- To November 2012, Mexico-Japan bilateral trade reached 20.2 billion dollars, an increase of 7.8% from the same period last year. Mexico’s exports to Japan increased by 10.6% reaching US$ 4,033 million, while imports from Japan increased by 7.1% to US$ 16,179 million. In 2011, Mexico-Japan bilateral trade reached US$ 20.5 billion, a 10.6% increase compared with 2010.
- On April 1st, the amending Protocol the Mexico-Japan Economic Partnership Agreement entered into force. The Protocol, stipulates further improvement of market access conditions for an array of products exchanged between Japan and Mexico, including the expansion of quota amounts for Mexico’s agricultural products. The amendments also facilitate import/export operations by simplifying procedures to obtain certifications of origin through the introduction of the Authorized Exporter System.
- On January 3th, Mazda announced that its production capacity in Mexico will be increased from 140,000 vehicles to 230,000 units by March of 2016.
- On November 9th, Toyota and Mazda announced their strategic partnership in Mexico, in which Mazda will produce a Toyota-brand vehicle in its plant. This model will start to be produced by the summer of 2015 at a pace of 50,000 units per year and will be sold through Toyota dealerships.
- In 2012, Japanese automotive companies producing in Mexico were responsible for 28% of the country total car production, 14% up from 2011, manufacturing more than 802 thousand units. In addition, last year domestic sales of Japanese automobile brands represented 41% of the Mexican market for new automobiles.
- Mazda, Honda, Nissan and Toyota, the four biggest Japanese car manufacturers, announced new plant investments in Mexico. Mazda will open its first assembly plant in the country, while Honda, Nissan and Toyota are expanding their production capacity. These investments amount to US$ 3.45 billion.
- Japanese auto parts suppliers continue to expand their investments in Mexico. From 2011 to January 2013, more than 56 companies have announced new investments in Mexico, totaling US$ 1.7 billion.
- Mexico has consolidated its position as one of the world’s leading automotive hubs. The country currently ranks 8th among the leading producers of automobiles, with more than 2.88 million vehicles produced in 2012 and it became the fourth largest exporter with more than 2.35 million units.
- In September 2012, The Ministry of Agriculture of Japan (MAFF) recognized the state of Jalisco as Classic Swine Fever (CSF) free for the export of fresh, chilled or frozen pork, which is the result of management initiated by Mexico in 2007, according to the National Service of Health, Food Safety and Quality (SENASICA). This recognition is of great importance as Jalisco, along with Sonora, are the main producers of pork in the country, with about 45 percent of national production.
- In May 2012, a group of Japanese aerospace company representatives visited Mexico to learn about the country’s aerospace capacity, manufacturing footprint and engineering process. The delegation visited four aerospace clusters in Queretaro, Chihuahua, Mexicali and Tijuana, where more than two-thirds of the country’s aerospace production are located.
- In 2012, Mexico posted a trade surplus for first time since 1997. The surplus reached US$163 million. Mexico’s exports were US$370.9 billion, an increase of 6.7% in annual terms. Imports were US$ 273.2 billion, a growth of 5.7% in annual terms.
- In October 8th, Mexico announced its integration to the Trans Pacific Association Agreement (TPP) as a formal member, according to the internal procedures in the country- members of this initiative. Mexico started to negotiate during the New Zealand round last December.
- In 2011, Mexico total trade with all its trading partners surpassed US$ 700 billion; exports were US$ 349.6 billion and imports US$ 350.8 billion. Mexico is the largest exporter in Latin America.
- The Mexican economy grew at annualized rate of 4% during in real terms during 2012. Mexico’s GDP forecast for 2013 is between 3.5 and 4%.
- According to JP Morgan, Mexico’s country risk to January 2013 was 120 basis points, while the country risk of Argentina and Brazil were 1,105 and 145 basis points, respectively.
Source: Information compiled by Mexico’s Secretary of Economy, Office of Representation in Japan.