The president of the Mexico-China Chamber of Commerce and Technology said that between 3 and 4 firms are installed every month in the country, especially in the automotive sector.
A dozen Chinese companies approach Mexico every month to investigate the requirements to settle in the country, said Amapola Grijalva, executive president of the Mexico-China Chamber of Commerce and Technology .
During the presentation of the Annual Calendar of Trade Missions and International Fairs 2020, by various business chambers, the representative of the Asian giant acknowledged that the automotive sector firms, especially auto parts suppliers, are the most interested in moving to the country to operate.
“We have detected 10 companies that are coming to this country per month looking for specific and specific information to be able to establish themselves in Mexico. (…) Of the 10 that ask, more or less 3 or 4 companies are arriving, ”he said.
“They are very focused on the automotive industry, in the clusters of auto parts that also in a very symptomatic way, derived from the T-MEC “USMCA”, the auto assembly companies themselves are bringing their suppliers from China to settle here and not lose their preferences Tariffs in the destination markets of North America ”.
He explained that the ratification of that agreement by Mexico and the United States, still pending in Canada, is an attraction for Eastern firms, among which are manufacturers of car horns, micromotors, and auto parts for suspensions.
However, he stressed that work on the part of the federal government is needed to promote the advantages that T-MEC “USMCA” can bring to these firms, as well as the conditions under which the agreement will be implemented and how to comply with its rules.
“This regulatory complication that will bring the T-MEC will require a lot of support from specialists, advisors, consultants but also from authorities so that this arrival of investments is real, effective and fast. Otherwise, all these evaluations that have to be done on the advantages that Mexico grants will not allow these investments to be made in real-time, ”he said. “However, we think the most important thing is yet to come.”
The T-MEC “USMCA” was approved by the Mexican Senate last December after a modification that adjusted the criteria for the implementation of the labor reform in Mexico, as well as seasonal tariffs on some agricultural products.
The US legislature endorsed the agreement last January, while the Canadian government began the ratification process the last week of January, without the process having been completed so far. Once this occurs, the agreement will enter into force 3 months later.
Coronavirus will not affect the Mexican economy
While the coronavirus epidemic that has mainly affected China and various nations in Asia has affected economic activities, the Mexican economy is not expected to suffer from this effect.
This is because the activities have reduced their pace in part due to the measures implemented in that nation, such as work at home and the reduction of operating levels as some workers do not go to their sources of work, but activities have not stopped completely.
“The growth of the Mexican economy will not have to be affected by this emergency problem in China, what we hope is the opposite is that our economy from its link with international trade far exceeds the growth expectation we have had in recent years, ”he said.
He recalled that the growth between Mexico and China grew consistently 10% annually over the last decade, based mainly on the rise in food exports from the American country.
“It is said that the SARS caused a decrease of about 2% in the directly affected economies, it is said that in the case of China there will be at least 1% decrease in its economy, we still do not have a specific measurement, but we know that the recovery will require a huge injection of resources and we know that China will do it without fail and in a timely manner, ”he said.
Source: Forbes Mexico
The Mazatlan Post