Discussion on Taking Advantage of NAFTA

Lunch Plenary – Discussion on How Companies are

Taking Advantage of NAFTA

(M) Randall Mang – Randall Anthony Communications

Alan Minz - DFAITJoseph Salazar –

Bureau of Western Hemisphere Affairs, US Govt. Jorge Lopez - ProMexico

Bryan Hughes – Export Development Canada

@ExpoPlazaLatina #EPLVanWi-Fi: SFUNET Account ID: lw1005 Password: v65t.M>b

(M) Randall Mang – President of Randall Anthony Communications


Lunch Plenary – Discussion on How

Companies are Taking Advantage of NAFTA


Alan Minz – Regional Director Pacific Region, DFAIT


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NAFTA - 20 years

HOW COMPANIES BENEFIT (tariff elimination, reductions in technical barriers, access to government procurement, investment protection, dispute settlement, temporary entry of workers)

NAFTA ACHIEVMENTS (increased trade and investment, integration of production, enhanced competitiveness, job creation, perceptions towards trade liberalization)

ONGOING CHALLENGES (protectionism, border-related issues, regulatory differences, lack of coordination, global competition)

WAY FORWARD – A PARADIGM SHIFT (trilateral approaches?)

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Helping you succeed in NAFTA

CANADA’S TRADE COMMISSIONER NETWORK 16 offices in the NAFTA zone (3 Mexico, 13 U.S.) Vancouver Regional Office ([email protected]) www.tradecommissioner.gc.ca

SERVICES OFFERED Market preparation Market potential assessment Qualified Contacts Problem solving Events and funded programs

OPPORTUNITIES IN MEXICO AND THE UNITED STATES Cleantech Mining Construction/Infrastructure

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Mexarklet

North American Agreement on Labour Cooperation (NAALC) Commitment by Parties to enforce domestic labour laws Administered by Commission for Labour Cooperation (CLC)

• Operations of Secretariat temporarily suspended in August 2010; under review by labour ministries.

Institutions

NAFTA Free Trade Commission Trade Ministers of Canada, Mexico and the U.S. Meets annually do discuss trade policy issues and NAFTA work plan Host rotates: Last meeting on January 10, 2011, in Mexico City and Canada’s turn to host next.

NAFTA Secretariat National sections of Secretariat (Canadian Section, independent body reporting to Parliament) Provide assistance to dispute resolution panels

NAFTA Working Groups 25 technical working groups; only 11 are active.

mailto:[email protected]

http://www.tradecommissioner.gc.ca/

Joseph Salazar – Deputy Director for Economic Policy,

Bureau of Western Hemisphere Affairs, US Govt


NAFTA 2.0•NAFTA Success

•Beyond the Border

•Regulatory Cooperation Council

•Trans-Pacific Partnership

U.S. Consulate General Vancouver

Opportunities•Clean Technology

•Construction

•Mining

•SelectUSA (http://selectusa.commerce.gov/)

U.S. Consulate General Vancouver

http://selectusa.commerce.gov/

Jorge Lopez – North America Regional Director,

ProMexico


1.ProMéxico is the Mexican Government institution responsible of strengthening Mexico’s participation in the international economy.

Why Mexico

12 Free Trade Agreements Skillful Talented labor force

Unique Geographical Location Competitive Costs

Solid Macroeconomic Environment Demographic bonus

Political Stability

;

Renewable energies• Mexico is ranked fourth in the world in geothermal power generation (958 MW installed that generate more than 6,500

GWh/year).• Mexico ranks among the top countries with the highest solar irradiation. It is part of the "sun belt", which could generate large

amounts of energy to self-sufficiency and export.• The state of Oaxaca, in Mexico, is one of the most privileged of the world in terms of wind power potential (close to 6,000

MW).• Mexico is the leading provider of solar photovoltaic modules in Latin America, with a production capacity of 245 MW (above

Brazil, Chile and Argentina).• ProMéxico NAFTA has 17 Renewable Energy Projects worth $6.2 USD Billions in developmentMining • According to Behre Dolbear, in 2011 Mexico was ranked 5th best destination for investment in mining projects.• Mexico is the leading country in Latin America and the 4th globally in terms of receiving investments for mining exploration in

nonferrous minerals.• Mexico is the leading silver producer and exporter globally.• The second global fluorite producer and third bismuth producer.• The second gold producer in Latin America. • ProMéxico NAFTA has 23 mining projects worth $3.4 billion Us dollars.Construction• Mexico invests around 1% off its GDP in infrastructure projects• Only in 2011 the investment in infrastructure was over 20.7 billion dollars of which 11% came from private sources• Mexico also built over 18,000 km of roads which is the largest figure in history• Invested over 2.7 billion dollars in rail of which 60% were also from private sources.• 1.3 billion dollars was invested in airport infrastructure and 3 billion dollars in ports.• Mexico built the largest and highest bridge in Latin America that also is the worlds highest standing bridge. The Baluarte

Bicentenary Bridge.• ProMéxico NAFTA has 8 Infrastructure projects worth 820 million US Dollars

You need a Best in Class Product or Service

Mexican buyers are both service- and price-sensitive, but in many cases the most important factor in a successful sale is a supplier’s ability to provide reliable after-sales service, maintenance programs and product training and support.

Also important are uniform quality control, compliance with international standards and reliable delivery

If your company can meet these criteria, your chances of making a sale will increase considerably.

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Mexico Overview

Key Sectors of Focus: Oil & Gas, Mining, Infrastructure & Environment, Transportation

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Your Business Relationship – Understand the Culture

Business relationships in Canada and the United States tend to be rather impersonal, but the same is not true in Mexico. Like their counterparts in other Latin American cultures, Mexicans do business on the basis of trusted personal relationships, and these must usually be established before any business can be carried out.

Business decisions may often be based more on the Mexican participant’s degree of comfort with the relationship than on a purely objective criteria.

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The Integrative Trade Model

Foreign Suppliers

Imported Inputs

Affiliate Sales

Imported

Inputs

Outbound DirectInvestment

Foreign-sourcedInputs

Cdn. Foreign Affiliates

Canadian Companies

Export Sales

Foreign Customers

Evolving Trade Model

Lunch Plenary – Discussion on How Companies are

Taking Advantage of NAFTA

(M) Randall Mang – Randall Anthony Communications

Alan Minz - DFAITJoseph Salazar –

Bureau of Western Hemisphere Affairs, US Govt. Jorge Lopez from @promexicotw

Bryan Hughes from @exportdevcanada


Discussion on Taking Advantage of NAFTA

Business

Transcript of Discussion on Taking Advantage of NAFTA