Mexico is a 2nd world country

Mexico: The country with the most free trade agreements in the world

Mexico has become a major global economic player in recent years. According to a study by PricewaterhouseCoopers, the country will almost quadruple its gross domestic product (GDP) by 2050 and move into the sixth place of the economies with the largest GDP by purchasing power. Johannes Hauser, Managing Director of AHK Mexico, talks about the dependence on the USA and the strength of the Mexican automotive industry.
 
Question 1:
Mexico's economic development is impressive, foreign investment is on the rise, and the forecasts are very good. What makes the Mexican economy so strong?
 
Hauser: On the one hand, Mexico has a large domestic market with high purchasing power with around 120 million inhabitants. On the other hand, there is a reliable economic policy that relies on openness and globalization. This has ensured stable macroeconomic conditions for 20 years, which are not necessarily typical for Latin America. In addition, many free trade agreements have triggered an enormous influx of foreign investment and promoted the development of a highly professional industrial culture.
 
Question 2:
How relevant are the free trade agreements for German investors in a country with such an excellent strategic location?
 
Hauser: German companies benefit from the dual strategy. They supply the local market, but also serve the USA as the world's largest single market as well as Japan, the EU and numerous countries in Latin America thanks to the free trade agreement thanks to the free trade agreement. The dynamism in the export-oriented manufacturing industry also leads to a considerable demand for capital goods. Since Mexico does not have its own mechanical engineering, German providers in the capital goods industry have interesting market prospects, which can be clearly seen in the development of German exports to Mexico.
 
Question 3:
Mexico is the leading automobile manufacturer in Latin America, and automobile companies continue to invest billions. What distinguishes the location for this industry?
 
Hauser: The free trade agreements are a key argument here too. There is also a long tradition of automobile manufacturing in Mexico. Volkswagen, for example, has been active in the country for over 50 years, as have US corporations. A very good and reliable supplier and infrastructure has developed, but also an esteemed manufacturing quality, which explains why, in addition to the mass segment, premium brands such as Audi, BMW and Mercedes will soon be producing cars here.
 
Question 4:
A new market is emerging from the energy reform and the associated liberalization of the energy and oil industries. Does this give rise to opportunities for German investors?
 
Hauser: The new access to exploration, generation and distribution of energy opens up very good business opportunities for German technology suppliers because Mexico has enormous demand here. The Mexican energy company PEMEX has also recognized this and has now even opened a liaison office in Germany in order to proactively win German companies to participate in the various processes.
 
Question 5:
One of the services provided by your AHK is the Partner Support Program. What is this about?
 
Hauser: The influx of German investors also means that more and more specialists and managers are coming to Mexico, usually with partners. In order to give them the opportunity to organize their stay, we offer various options in cooperation with the companies, from professional activities, further training measures or volunteer work. The aim is to make the stay in Mexico fulfilling for both partners.
 
Please finish the following sentence: "Mexico is attractive for German investments and exports because ..."
 
Hauser: ... they encounter a stable economic and political environment and have very good development and market opportunities in an open economy based on globalization. "
 
(Source: DIHK 8/2015)