Doing Business In (Insert Country Name Here) - Department of ...
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E) With the passage of the IMMEX law integrating Maquila and Pitex industries, "Maquiladora Investment inFixed Assets" is no longer reported separately and is included in the category "Inter-company Investments".F) Yearly amounts may differ from 5 year totals due to rounding error.FDI Inflow as a Percentage of GDP2004 2005 2006 2007 2008GDP 759,422 849,030 952,340 1,025,428 1,088,128FDI Inflow 23,725 22,106 19,471 27,094 22,517Percent of GDP 3.1 2.6 2.0 2.6 2.1Notes on "FDI as a Percentage of GDP" chart: GDP figures are taken from the International Monetary Fund,IMF. Figures in millions of dollars at current market prices.U.S. FDI Flow and Stock in Mexico (USD Millions)2005 2006 2007 2008U.S. FDI Flow inMexico9,596 9,444 11,226 7,170U.S. FDI Stock inMexico73,687 82,965 91,259 95,618Notes: U.S. FDI Flow and stock in Mexico chart. Source: U.S. Department of Commerce Bureau ofEconomic Analysis.Mexico FDI Flow and Stock in U.S. (USD Millions)2005 2006 2007 2008Mexico FDI Flowin U.S.(19) 2,265 161 1,672Mexico FDI Stockin U.S.3,595 5,310 6,287 7,948Notes: U.S. FDI Flow and stock in Mexico chart: A) Source: U.S. Department of Commerce Bureau ofEconomic Analysis.In 2009 the U.S. and other nations' companies announced several large investments, including:A) The Executive Council of Global Companies (CEEG), USD 6.3 billionB) Coca-Cola Co., USD 5 billion during the next 5 yearsC) Nestlé, USD 500 million in QueretaroD) General Electric, USD 24 million in QueretaroE) Bell Helicopter (Textron Intl.), USD 85 million in ChihuahuaF) Cessna Aircraft, USD 21 million in ChihuahuaWeb ResourcesReturn to topProMexico: www.promexico.gob.mxFederal Competition Commission: www.cfc.gob.mxDepartment of State Legal Advisory: www.state.gov/s/lNacional Financiera Development Bank: www.nafin.comSec. of Economy's IMMEX Program: www.economia.gob.mxWIPO: www.wipo.int/about-ip/en/ipworldwide/pdf/mx.pdfReturn to table of contents
Return to table of contentsChapter 7: Trade and Project Financing• How Do I Get Paid (Methods of Payment)• How Does the Banking System Operate• Foreign-Exchange Controls• U.S. Banks and Local Correspondent Banks• Project Financing• Web ResourcesHow Do I Get Paid (Methods of Payment)Return to topU.S. exporters should be aware that Mexican lending rates are significantly higher thanin the U.S., ranging from 15 - 20% per year. Requiring payment either by ConfirmedLetter of Credit or Cash In Advance can cost U.S. exporters sales opportunities. Whilefavorable payment terms are important, U.S. companies should consider all financingoptions available in order to be as competitive as possible.The economic downturn has put increased pressure on Mexican importers to requestlonger payment terms as they struggle to finance their operations. In the case ofexisting contracts, many importers are defaulting on payment deadlines, paying 30 to 45days late. Exporters are advised to protect themselves from the risk of default byobtaining foreign buyer financing or export insurance from the U.S. ExIm Bank (seebelow for more information).It can be difficult to collect from Mexican buyers in cases of non-payment. The U.S.Commercial Service Mexico is currently assisting dozens of U.S. companies in theirefforts to obtain payment for products/equipment delivered. It is often necessary totravel to Mexico to meet with the buyer and in many cases to hire a lawyer to handle thecase. In fact, the state-owned oil company, Pemex, announced in November 2009 athree-month freeze on payments to vendors/contractors in response to adverse financialconditions. This type of decision, by the largest company in the country, creates aripple effect throughout the economy and only compounds the problem.More than ever, U.S. exporters are advised to be cautious and seek counsel whennegotiating contracts in Mexico. Once negotiated, be prepared for the unexpected asMexico and its companies struggle to dig out from a severe recession that has madetight credit even tighter.A detailed report on financing and payment mechanisms is available at:http://www.buyusainfo.net/docs/x_4118633.pdfHow Does the Banking System OperateReturn to topCommercial Banks:Mexico's commercial banks offer a full spectrum of services ranging from depositaccounts, consumer and commercial lending, corporate finance, trusts and mutualfunds, to foreign exchange and money market trading. Currently, 41 banks are
- Page 45 and 46: CATV: Today 30% of homes have pay-T
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- Page 77 and 78: majority share (about 75 percent) o
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- Page 105 and 106: For further information please visi
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E) With the passage <strong>of</strong> the IMMEX law integrating Maquila and Pitex industries, "Maquiladora <strong>In</strong>vestment inFixed Assets" is no longer reported separately and is included in the category "<strong>In</strong>ter-company <strong>In</strong>vestments".F) Yearly amounts may differ from 5 year totals due to rounding error.FDI <strong>In</strong>flow as a Percentage <strong>of</strong> GDP2004 2005 2006 2007 2008GDP 759,422 849,030 952,340 1,025,428 1,088,128FDI <strong>In</strong>flow 23,725 22,106 19,471 27,094 22,517Percent <strong>of</strong> GDP 3.1 2.6 2.0 2.6 2.1Notes on "FDI as a Percentage <strong>of</strong> GDP" chart: GDP figures are taken from the <strong>In</strong>ternational Monetary Fund,IMF. Figures in millions <strong>of</strong> dollars at current market prices.U.S. FDI Flow and Stock in Mexico (USD Millions)2005 2006 2007 2008U.S. FDI Flow inMexico9,596 9,444 11,226 7,170U.S. FDI Stock inMexico73,687 82,965 91,259 95,618Notes: U.S. FDI Flow and stock in Mexico chart. Source: U.S. <strong>Department</strong> <strong>of</strong> Commerce Bureau <strong>of</strong>Economic Analysis.Mexico FDI Flow and Stock in U.S. (USD Millions)2005 2006 2007 2008Mexico FDI Flowin U.S.(19) 2,265 161 1,672Mexico FDI Stockin U.S.3,595 5,310 6,287 7,948Notes: U.S. FDI Flow and stock in Mexico chart: A) Source: U.S. <strong>Department</strong> <strong>of</strong> Commerce Bureau <strong>of</strong>Economic Analysis.<strong>In</strong> 2009 the U.S. and other nations' companies announced several large investments, including:A) The Executive Council <strong>of</strong> Global Companies (CEEG), USD 6.3 billionB) Coca-Cola Co., USD 5 billion during the next 5 yearsC) Nestlé, USD 500 million in QueretaroD) General Electric, USD 24 million in QueretaroE) Bell Helicopter (Textron <strong>In</strong>tl.), USD 85 million in ChihuahuaF) Cessna Aircraft, USD 21 million in ChihuahuaWeb ResourcesReturn to topProMexico: www.promexico.gob.mxFederal Competition Commission: www.cfc.gob.mx<strong>Department</strong> <strong>of</strong> State Legal Advisory: www.state.gov/s/lNacional Financiera Development Bank: www.nafin.comSec. <strong>of</strong> Economy's IMMEX Program: www.economia.gob.mxWIPO: www.wipo.int/about-ip/en/ipworldwide/pdf/mx.pdfReturn to table <strong>of</strong> contents
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