Trade
EU-Mexico TRADE RELATIONS
Trade relations between the EU and Mexico are governed by the Free Trade Agreement in force since 2000, which has allowed significant growth in bilateral trade and has acted as a catalyst for investment flows. Market access is by far the reason why the FTA was negotiated; when NAFTA entered into force, the EU's market share dropped 50%. As for Mexico, it sought to attract further FDI and reduce its economic dependence on the US. Since then, the FTA has served as a powerful instrument to foster a closer co-penetration of both economies. It reinforced Mexico's position as an export-oriented manufacturing center, with guaranteed preferential access to the world's both largest markets, and its average yearly investments flows have tripled. It also contributed to raising the country's competitiveness, not only thanks to the diversification of its trade in goods but also thanks to the liberalization of trade in services.
| • Total trade: € 40.1 in 2011 • The EU is Mexico's third trade partner • Mexico is the EU's 21rst trade partner • Main EU exports to Mexico: machinery, transport equipment and chemicals • Main Mexican exports to the EU: crude oil, machinery and transport equipment. • Trade in services amounts to € 8.2 billion • Accumulated FDI flows since 2000: $ 102.6 billion USD |
EU-MEXICAN TRADE RELATIONS IN NUMBERS
EU-Mexico trade amounted to over 40 billion EUROS last year (with a significant surplus for the EU of 7.5 billion €), which represents a 16.1% increase compared to 2010. EU exports totaled 23.8 billion € while Mexican exports to the EU reached 16.3 billion €. The growth in total EU-Mexico trade since 1999, just before the FTA, was 150% (120% for EU exports to Mexico and 220% for Mexico exports to the EU). The EU's share in Mexico's trade at 8.1% in 2011 was slightly lower than before the global crisis erupted (9.3% in 2008), as the recovery from the crisis has been slower for EU-Mexico trade than with other partners. The EU is now Mexico’s 3rd most important trade partner (after the US and China) and the 2nd source of foreign direct investment.
EU exports to Mexico: 23.8 billion € in 2011
In 2011, EU exports to Mexico amounted to 23.8 billion €, 11.6% above their level in 2010 and 120% above their level in 1999.
The most important product group was machinery and transport equipment (44%), followed by chemicals (18%, including pharmaceuticals) and fuels and mining products (11%, mainly refined gasoline); agricultural products (including raw materials and fish) only counted for 3.5%. On the whole, the EU plays an important role as a provider of capital goods and intermediate products which enter into the production processes of assemblers frequently exporting to the US and other destinations. The large trade deficit Mexico has with the EU is thus largely offset by its surplus with the US.
EU imports from Mexico: 16.3 billion € in 2011
EU imports from Mexico amounted to 16.3 billion € in 2011, 23.4% above their level in 2010 and 220% above their level in 1999.
The main product group was machinery and transport equipment (44%), followed by fuels and mining products (24%, mainly crude oil) and other manufactures (11%). Agricultural products (including raw materials and fish) represent only 6% of Mexican exports to the EU. Apart from oil and unlike most other Latin American economies, Mexico is primarily a supplier of manufactured goods and not a raw materials provider.
EU Investment in Mexico: USD 102.6 billion accumulated flow in 12 years (2000–11)
European investment has been historically important in Mexico. Since the FTA came into force, the average yearly investment flow originating in the EU has tripled. Important investments have been made in the financial sector, three of the five most important banks in Mexico being European (BBVA Bancomer, Santander Serfin and HSBC). Another very visible European investment in Mexico is in the telecoms sector with Telefónica Movistar. In 2010, the Dutch brewery Heineken bought one of the two big beer producers in Mexico (Cuauhtémoc from FEMSA) with an investment of over USD 6.5 billion.
Although the main foreign investor remains the US, with 46% of total FDI over the last 10 years, the EU follows closely with more than 40% (and was first in 2010 with 62%, more than half of which was the Heineken investment). The European countries investing most in Mexico are Spain (39.5% of EU), the Netherlands (36.5%), Great Britain (8.5%) and Germany (4.7%). The accumulated flow since 2000 has been USD 102.6 billion, primarily directed to services, notably financial and tourism, followed by the manufacturing sector. In 2011 EU investment has been less important than previous years, probably due to the economic / financial crisis in Europe.Source:Mexican Ministry of Economy.