The Bank has a wide range of promotional and financial instruments designed to comprehensively boost the productivity and competitiveness of exporters, especially small and medium-sized ones.
– Focusing on these last two years, how would you describe Mexican entrepreneurial initiative when it comes to selling its products abroad?
The recovery of our country's exports in 2002 encourages us to continue this effort. Last year, global economic activity achieved a moderate recovery, registering growth of 2,8%, a rate that, while higher than that of 2001, is still below the nearly 5% growth of 2000.
Meanwhile, the United States, which is our main trading partner, registered growth of 2,4%, so it did not achieve a vigorous recovery that would allow it to boost global economic growth.
In Latin America, growth was negative (around -0.5%), making the 0,9% growth of the Mexican economy noteworthy. Furthermore, thanks to sound fiscal and monetary policy management, Mexico maintained stability in its financial and foreign exchange markets, setting it apart from other economies in the region. This distinction is reflected in the continued flow of foreign direct investment, estimated at US$13,5 million. For 2003, Mexican economic growth is projected at 3,0%, with annual inflation also at 3,0%.
– What are the main destination markets for Mexican exports? And what position does Spain occupy in this ranking?
After a 4,8% decrease in total exports in 2001, 2002 saw a 1,4% increase, reaching a total of US$160,7 million. Throughout 2002, a clear upward trend in export activity was observed, particularly from the second half of the year onward. This recovery occurred despite the prevailing low economic growth in the international economy. The 1,4% increase represents the first after fourteen consecutive months of negative growth.
As for 2003, growth is projected at 4%, which would allow for a total of $167,2 million. This growth is contingent upon the U.S. economy growing at the projected rate.
In addition to the deep historical and cultural link that unites our two countries, in recent years important progress has been made in building significant economic ties, which place Spain as Mexico's second largest trading partner in the European Union.
Last year, bilateral trade amounted to $3,1 billion, while foreign investment flows from Spain totaled $3,6 billion between 1994 and 2001. Furthermore, the number of Spanish companies with investments in Mexico has grown rapidly in recent years, currently standing at around 1.400 entities distributed across sectors such as banking, tourism, energy distribution, and the automotive and auto parts, metalworking, and food and beverage industries.
Despite Spain's prominent presence in Mexico's international economic relations, there is still great potential to take advantage of the opportunities arising from the Mexico-European Union Free Trade Agreement.
– How would you generally assess the competitiveness of Mexican companies in the international arena, and what is this assessment fundamentally based on? What advantages could a Spanish businessperson find as a customer in the Mexican market?
Mexico benefits from preferential treatment for its exports thanks to free trade agreements with 32 countries. In fact, we are the only country with free trade agreements with both the United States and the European Union.
Furthermore, formal talks have already begun to sign a free trade agreement with Japan, which will expand opportunities for exporters who establish themselves in Mexico.
For Spanish businesspeople interested in entering the Mexican market, we offer services to connect with Mexican businesspeople; information about Mexico and its export offerings, as well as economic sectors and regions; the legal framework for investing; guidance and advice on locating investments in Mexico; and specialized publications, among others.
We have a large and growing domestic market; Mexico is the ninth largest economy in the world and the largest in Latin America. Regarding FDI, Mexico is—among emerging economies—the second largest recipient of this type of investment. Between 1995 and 2001, Mexico attracted approximately US$90 billion in foreign direct investment.
I invite you to discover the advantages of investing in Mexico. Many companies from around the world are already taking advantage of the opportunities Mexico offers, allowing them to participate in our domestic market and, at the same time, use our country as a platform to serve the markets of the United States, Canada, and Latin America.
– In addition to increasing the competitiveness of Mexican companies, what services does Bancomext offer to support foreign companies interested in investing or exporting in Mexico?
Bancomext's products and services have been designed according to the requirements that we have identified for each stage of exporting in terms of information, advice, training, technical assistance, participation in international markets and promotion of exportable goods, with the purpose of enabling small and medium-sized businesses to export faster, more safely and at lower costs.
These services are offered both in Mexico and abroad, through our network of 42 trade offices and modules located in the main markets for our exports.
– In financial terms, how exactly is Bancomext's cooperation coordinated with the Spanish financing entities, Instituto de Crédito Oficial (ICO) and Compañía de Financiación del Desarrollo (COFIDES)?
The financial relationship that Bancomext currently maintains with Spanish institutions is highly positive and allows us to have an instrument that facilitates trade between both nations.
Bancomext maintains credit lines with Spanish banks such as Banco Atlántico, Banco Bilbao Vizcaya Argentaria, Banco Santander Central Hispano, and Banco Español de Crédito, primarily for financing pre-export and export operations of Mexican products with terms of up to 360 days. The cumulative amount of these lines exceeds $500 million.
Equally important is the credit line that Bancomext maintains with the Official Credit Institute to support investment projects of Hispanic-Mexican companies.
In April 2000, our institution formalized a $50 million line of credit with the ICO to support investment projects by Spanish-Mexican companies in Mexico. This line of credit can finance the acquisition of goods and services from any source and, in some cases, initial working capital for the project, thus making it an "untied" line of credit. The terms and conditions are highly competitive, with repayment periods of up to 10 years.
The purpose of this line of credit is to provide financing for investment projects of companies with Spanish participation in Mexico; however, it is important to note that one of the most relevant conditions is the continued presence of Spanish investors throughout the life of the loan granted by the ICO.
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