Eleventh anniversary of the Mexico-European Union FTA - Awex

Eleventh anniversary of the Mexico-European Union FTA
(Continues from page 1)
18.5 22.2 23.8
23.4
13.2 15.4 16.9 17.2 18.7 21.8
5.3 6.8 6.9 6.2 7.4 8.6
Mexican exports to the EU
Bilateral Trade Mexico-EU
(Billion USD)
26.1
30.4
99 00 01 02 03 04 05 06 07 08 09 10
EU's Imports
In 2010, Mexican exports to the EU reached 17.4 bd,
24% more than in 2009; consolidatating the EU’s position
as Mexico’s second export market.
It is worth highlighting that since the entry into force of
MEUFTA, Mexican exports to the EU have increased
230%, equivalent to almost the double growth rate of
Mexican sales to the rest of the world in the same period
(1999 -2010).
Thanks to this dynamics, the EU’s participation as a destination
for Mexican exports climb to almost 5% in 2010,
positioning Mexico as EU’s 24th supplier. In contrast
such participation reached only 4% in 1999.
In the period 1999-2010, sectors accounting for the largest
shares of the increase in value terms of Mexican exports
to the EU included: machinery and transportation
equipment (45.3% of the increase), oil and gas (20.6%)
and chemical products (7.6%).
37.6
42.4
50.5
26.1 29.2 33.9
39.3
11.5 13.3 16.6 20.2 14.0 17.4
Mexico's Imports
Source: Mynistry of the Economy of Mexico with data from Banxico and Eurostat
59.5
41.3
27.3
50.0
32.6
Mexican imports from the EU
In 2010 Mexican imports from the EU reached 32.6 bd,
achieving an increase of 19% compared to 2009, wherewith
the EU consolidates its position as Mexico’s third
supplier, only behind the United States and China.
The EU’s share in Mexican purchases from abroad was
10.8% in 2010, which compares favorably with the 9.3%
in 1999.
Since MEUFTA came into effect, Mexican imports from
the EU surged 146.7%, in contrast with the growth rate of
109% of the rest of the world.
Between 1999 and 2010, the Mexican import sectors that
have contributed with the greatest share of the increase
in Mexican imports from the EU, in terms of value, included
machinery and transportation equipment (35.8% of
the increase), chemical products (21.0%) and oil and gas
(15.7%).
It is important to highlight that more than three quarters of
these imports are capital goods (18%) and inputs (60%)
used on manufacturing process, whereupon MEUFTA
allows to reduce production costs and improves the competitiveness
of firms established in Mexico. Additionally,
producing high quality consumer goods in Mexico at lower
prices, brings benefits for Mexican families.
Thanks to the MEUFTA, EU’s companies that consolidate
production in Mexico increase their capacity to compete
internationally at lower costs, taking advantage of
FTA’s network great potential, that grant preferential access
from Mexico to 43 countries in North America, Europe,
Latin America and Japan.
(Continued on page 3)
Mexico’s Total Trade in April
(billion US$)
2010 2011 %
Total 49.6 55.2 11.2
Exports 24.8 28.0 12.6
Exports (excluding oil) 21.4 23.4 9.0
Imports 24.8 27.2 9.8
Source: Banco de México
2
Mexico’s Trade with EU and EFTA
(million US$)
January - April 2010 2011 %
Exports to the EU 4,276.8 5,863.5 37.1
Imports from the EU 9,663.0 11,020.7 14.1
Exports to the EFTA 356.1 512.9 44.0
Imports from the EFTA 473.3 545.9 15.3
Source: Banco de México