Mexico

General Overview

Population:

107,449,525 (July 2006 est.)

GDP (purchasing power parity):

US$1.067 trillion (2005 est.)

GDP per capita:

US$10,000 (2005 est.)

GDP (real growth rate):

3% (2005 est.)

Industries:

food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism

Imports:

$223.7 billion f.o.b. (2005 est.)

Import commodities:

metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts

Exports:

US$213.7 billion f.o.b. (2005 est.)

Export commodities:

manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton

Alberta's export to Mexico:

CAN$498 million (2005)

Alberta's main exports to Mexico:

beef, canola seeds, wheat, polyethylene, coal, woodpulp and ethylene

Canada's main exports to Mexico:

canola seeds, beef, wheat and transportation equipment

For detailed information about Mexico, the following websites provide economic, political and historical information:

CIA World Factbook
Energy Information Administration, U.S. Department of Energy

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Export Statistics

For detailed statistical information on Alberta and Canadian exports to Mexico, consult the following statistical publications and databases:

Alberta's International Trade Review
An analysis of Alberta's international exports of goods and services. Published by Alberta Employment, Immigration & Industry.
Trade Data Online
Customized reports on Canada's trade with over 200 countries.

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Alberta-Mexico Relations

Alberta has a long history of cooperation with Mexico, particularly in the areas of energy, agriculture, and education.

World Relations

Alberta International and Intergovernmental Relations summary of Alberta's relationship with Mexico.
Alberta Mexico Office

2002 was a historic year in the Alberta/Mexico relationship, marked by Alberta Premier Ralph Klein opening the Alberta Mexico Office co-located in the Canadian Embassy in Mexico City.
Mexican Consular Agency in Alberta

In July 2003, Mexico reciprocated by opening a consulate in Calgary. The Calgary consulate, which is formally known as the Mexican Consular Agency in Alberta reports to the Consulate General of Mexico in Vancouver.
North American Free Trade Agreement (NAFTA)

Mexico is Alberta's fastest growing export market under NAFTA and is the province's fourth largest trading partner. Alberta is Canada's second largest exporter of goods and services to Mexico, and accounts for a quarter of all such exports.

Since Mexico began trade liberalization in 1990, import tariffs have been sharply reduced. Most Mexican tariffs, as well as other barriers have been reduced and most non-tariff barriers have been eliminated.
Service Providers to Companies Exporting to Mexico, Central America and the Caribbean (PDF, July 2008)

Access the directory to locate:

Accounting Firms in Mexico
Accounting Firms in Alberta
Brokers and Transport Services in Alberta
Brokers and Transport Services in Mexico
Environmental Consultants in Mexico
Financial Services in Alberta
Human Resources Firms in Mexico
Immigration-related services in Mexico
Law Firms specialized in different matters in Alberta
Law Firms specialized in different matters in Mexico
Market Research and Consultants in Alberta
Market Research and Consultants in Mexico
Translation Services in Alberta
Translation Services in Mexico

Suggestions for Finding Information on Canadian Companies Active or Interested in Mexico (PDF)

Alberta International, Intergovernmental & Aboriginal Relations (AIIAR) is frequently asked to provide a list of Alberta companies doing business in Mexico. This document describes what information AIIAR can and cannot share, and tips on how you can obtain similar information elsewhere.
Alberta International Marketing Strategy (AIMS)

Ensures the Alberta government's trade promotion and investment attraction activities are focused on key international markets.

According to AIMS, Mexico has been identified as a priority market in the following sectors:
- Agri-food
- Education and Training
- Energy
- Environmental Products and Services
- Industrial Machinery and Equipment
Agri-food

Beef continues to be an opportunity particularly in the higher income areas we typically target for our products. Canola seed is another major export for Mexico's vegetable oil market. Pork exports have been growing each year and now all tariffs have been removed so it will continue to be an attractive market. Alberta's wheat and malt barley are exported to Mexican food processors.

There are a number of factors influencing the growth of processed and convenience foods, such as better economic conditions, more women in the workforce, and generally long work days for employees. Some employees in or near Mexico City can spend up to four hours a day in travel time to and from work. French fry exports have shown strong growth over the past five years and will continue to supply both food service and retail markets.
Energy

The petroleum industry is the most valuable sector of Mexico's economy, for the contribution it makes to the national treasury. Petróleos Mexicanos, or Pemex, Mexico's state petroleum company, is responsible for about one-third of Mexican government revenues.
- PEMEX - Mexico's state petroleum company
Environmental Products and Services

The Mexican government is providing funding for most of these plants. Environmental investment forecasts to the year 2025, indicate Mexico needs to invest nearly US$5 billion to modernize irrigation, and improve water and wastewater treatment systems.

Key environmental buyers in Mexico include:
- Public water and waste utilities and operators
- Government agencies (federal, state and local)
- State-owned entities e.g. PEMEX (petroleum) and CFE (electricity)
- Private industry (domestic and international environmental engineering and construction companies)
Many large industrial enterprises are ISO 14000 certified plan to be. International Financial Institutions (IFI's), such as the Inter-American Development Bank and the World Bank, often require, as a condition for project approval, that the executing agency acquire specialized services to assist the agency in the planning, administrative, technical, and operational components of large environmental infrastructure projects and technology transfers.
Water and Wastewater Treatment

Mexico has a low percentage of municipal wastewater treatment, systems with high pollution levels and low commercial operating efficiency due to non-payment and loss. Cities of over 20,000 inhabitants have to have water treatment by 2007 and most do not have the required infrastructure. Over 150 projects have been approved for 2005 in order for municipalities to comply with new standards. Municipalities always tender their projects through public biddings in which price are the deciding factor.

New laws are encouraging companies to adhere to water pollution standards. Those discharging more than 1.2 tons a day of BDO are required to treat their waters and many do not have the infrastructure to comply yet. All industrial sectors, tourism, and housing development industries present opportunities.

Desalinization and technologies for water purification including arsenic, salts and mineral removal technologies are gaining momentum.
Solid and Hazardous Waste

The federal government is responsible for regulating hazardous wastes, including bio-hazardous waste, Polychlorinated Biphenyl (PCBs), as well as soil remediation. State and/or local governments are responsible for managing and regulating non-hazardous wastes, both municipal and industrial. Less than half of municipal solid waste and hazardous waste receives proper handling, confinement and/or treatment. The U.S./Mexico border regions and large metropolitan areas offer the best opportunities for companies specializing in solid and hazardous waste treatment as border region projects benefit from funds made available from the North American Development Bank.

Federal and state authorities have been putting pressure on municipalities to modernize their capabilities through controlled disposal sites, waste reduction and more efficient waste collection services. Opportunities exist on landfill construction, close dump field, site remediation, waste to energy, recycle of plastics, glass tire recycling, biogas generation and hazardous materials transport and confinement.
Industrial Environmental Opportunities

The industrial sector offers current and longer-term opportunities. Demand for environmental purchases is driven primarily by economics and to a far lesser extent, social engineering. Large multinationals operating in Mexico are usually compliant with regulations, and in many cases, go beyond it by adhering to international standards such as ISO 14000, Medium-sized and large Mexican-owned companies, which until recently had not developed an important environmental consciousness, have begun to invest in new, cleaner technologies.

Some of the best industrial opportunities identified are:
- Treating, recycling and reusing water and waste
- Hazardous and toxic waste treatment, management, and disposal solutions
- Replacing, retrofitting and upgrading inefficient machinery, engines, and equipment for clean technologies
- Emissions testing and control
- Medical waste incineration
- Reducing energy consumption
- Cost-effective alternative energies and fuels
- Improving internal combustion
- Fuel conversion technologies
Environmental Consulting Services & Geomatics

Improved enforcement by Mexico's Environmental Protection Agency (PROFEPA) and local authorities is creating opportunities for companies with specialized technologies, services and equipment aimed at ensuring proper disposal and treatment of hazardous waste. Improved compliance by industry (both voluntary and mandatory) has resulted in a dramatic increase in the number of environmental consulting services & geomatics opportunities, (environmental audits, risk assessments, feasibility studies, and environmental impact assessments etc.). The best prospects for environmental consulting services relate to:
- Studies, assessments, as well as voluntary and mandatory certification and permitting
- Institutional strengthening, technical assistance, and decentralization of environmentally related public services (water, sewage and waste)
- Training and education
- Geomatics

For additional information on business opportunities and resources for market intelligence, visit:

Electronic Business Intelligence Service (EBIS)
The on-line source for export market intelligence accessible to Alberta businesses working to expand into the global marketplace.
Export Source - Market and Business Opportunities
Online tool for new and experienced exporters.
The North American Development Bank
Offers programs to assist with projects in the U.S.A./Mexico border region.
Virtual Trade Commissioner
Gateway to market information.

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Exporting Your Products - Services for Exporters

Export Alert!
A resource for exporters to learn about changes in foreign export regulations.
Exporter Needs Continuum
Lists services that can benefit your company and who offers them.
Export Resources
Resources for both new and experienced exporters.
International Trade Canada
Sector reports as well as a list of staff contacts that can assist exporters.