Doing Business in MEUFTA Gerardo Prado September 2013

MEUFTA The Mexico- European Union Free Trade Agreement (MEUFTA), which entered into force on July 1 st, 2001, focuses on the trade of goods and services. The main goal of the treaty is to intensify trade and investment among the contracting parties. MEUFTA fosters the confidence required to make long-term investments and partnering commitments by investors of both parties. With the implementation of the MEUFTA Mexico secures access for its industrialized products and other goods into the EU market, while the EU re- establishes the competitiveness of the EU exports to Mexico, securing access to Mexican market under the same benefits enjoyed by NAFTA originating products. The MEUFTA consolidates Mexico’s privileged position as a strategic global trade hub and as a magnet for investment in the 21st century, fuelling Mexico’s continued drive towards sustained growth and prosperity. The MEUFTA is likely to diversify Mexican trade and investment relations, which are currently dominated by the U.S. The preferential treatment granted to European firms will place them in an improved position to compete in the Mexican market and make them invest more in Mexico as an export platform to many regions. It is therefore foreseeable for the EU to play a more important role in Mexico. Mexico – European Union Free Trade Agreement

MEUFTA EU and Mexico Trade Picture EU is Mexico's second biggest export market and Mexico's third largest source of imports. The EU's key imports from Mexico are mineral products, machinery and electric equipment, transport equipment and optic photo precision instruments. Key EU exports to Mexico include machinery and electric equipment, transport equipment, chemical products, and mineral products. In terms of services EU imports from Mexico are dominated by travel, sea transport, air transport and construction services. EU services exports to Mexico consist mainly of travel, sea transport, air transport and computer and information services. *Source: European Commission

MEUFTA Commercial information Mexico – UE *Source: Mexico´s Central Bank and the Ministry of Economy **2008 latest data available

MEUFTA Commercial information Mexico – Germany *Source: Mexico´s Central Bank and the Ministry of Economy **2009 latest data available

MEUFTA German Foreign Direct Investment 1,300 Companies with German Capital (2012 latest data available) Approximately 25 billion dollars accumulated capital in Mexico. Represents about 7% of our industrial GDP. Mexico´s leading trading partner amoung the EU countries. Ranked 4th among the EU investors countries in Mexico (after Spain, Netherlands and United Kingdom). Ranked 7th of the Mexico´s main global investors. 120,000 jobs created in Mexico by their companies. *Source: German Embassy and CAMEXA

MEUFTA Leading German Companies with FDI in Mexico Aerospace Automotive Chemical Domestic appliances Information Technologies Logistics Medical devices Metal-mechanic Pharmaceutical Renewable energies Hoeschst AG Basf AG Mahle Robert Bosch GmbH Degussa-Hüls Berh Gmbh & Co. BMW AG Süd Cheime AG Telefunken Microelectronic GmbH J. Eberspacher Gustav Wahler GmbH Hella kg Hueck & Co. Deutsche Bank ThyssenKrupp Ferrostaal AG Daimler Liebherr Siemens Volkswagen Leoni Getrag Grupo Schaeffler Continental Bayer Boehringer Ingelheim Allianz Henkel Strategic Investment Sectors in Mexico

Gerardo Prado