1. 1 Trade Commission of Mexico for Western Canada and the Pacific Northwest of USA JALISCO Business opportunities Business opportunities Portland Hispanic Metropolitan Chamber July 26, 2006

2. Hispanic Metropolitan Chamber 2 M E X I C O & NAFTA A decade of strengthening

3. Hispanic Metropolitan Chamber 3 Mexico – A Snap Shot Population: 106 million Population: 106 million GDP per capita: + $6.000 GDP per capita: + $6.000 74% urban 74% urban Under 20 – 44% Under 20 – 44% Wealthy – 5% Wealthy – 5% Upper Middle – 18% Upper Middle – 18% Middle Class – 37% Middle Class – 37% Poor – 40% Poor – 40%

4. Hispanic Metropolitan Chamber 4 Mexico A large & complex market Tijuana, BC Guadalajara, Jal Monterrey, NL Mexico, City

5. Hispanic Metropolitan Chamber 5 Mexico: Commercial policy n 1983 Mexico = a commercial strategy policy based on market economy. n Deregulation + commercial opening. n Improvement of the export performance + EXPORTS + EXPORTERS n THE CHALLENGE: TO BE MORE COMPETITIVE GLOBALLY.

6. Hispanic Metropolitan Chamber 6 GATT (OMC) FTA Chile APECOCDE FTA Costa Rica NAFTA USA Canada FTA Bolivia FTA Colombia Venezuela FTA Nicaragua 199519941993199219861998 2000 FTA European Union FTA Israel 2001 FTA Guatemala Honduras El Salvador PFTA Uruguay FTA Island Liechtenstein Norway Switzerland FTA Japan 2005 Mexico: International agreements

7. Hispanic Metropolitan Chamber 7 Mexico in the world GNP 2002-2005 (Billions US dollars) 1. United States 10,082 2. Japan 4,146 3. Germany 1,870 4. United Kingdom 1,422 5. France 1,330 6. China 1,155 7. Italy 1,090 8. Canada 700 9. Mexico 618 10. Brazil 605

8. Hispanic Metropolitan Chamber 8 Mexico in the world 8th export country worldwide 8th export country worldwide 1st export country in Latin America 1st export country in Latin America Mexico total trade = total trade of Brazil, Chile & Argentina together Mexico total trade = total trade of Brazil, Chile & Argentina together In the period 1994-2005 Mexico has been a leading recipient of FDI only after China and Brazil In the period 1994-2005 Mexico has been a leading recipient of FDI only after China and Brazil Inflows of FDI represent almost twice the inflows of India and Korea put together Inflows of FDI represent almost twice the inflows of India and Korea put together Export companies pay wages 37% higher than non-export Export companies pay wages 37% higher than non-export

9. Hispanic Metropolitan Chamber 9 Baja California States with highest foreign trade flows Jalisco Chihuahua Coahuila Nuevo León Veracruz Puebla Guanajuato Estado de Mexico Mexico City

10. Hispanic Metropolitan Chamber 10 Mexico as manufacturing centre Finished Products Parts and Components NAFTA REGION CENTRAL & SOUTH AMERICA Finished Products ASIA EUROPE Parts and Components Parts and Components

11. Hispanic Metropolitan Chamber 11 Incentives to do business in Mexico Location (Atlantic and Pacific Ocean). Location (Atlantic and Pacific Ocean). Internal market. Internal market. External market (USA, Europe and Latin America). External market (USA, Europe and Latin America). Competitive work force. Competitive work force. Production flexibility (low volume – high mix) Production flexibility (low volume – high mix)

12. Hispanic Metropolitan Chamber 12 JALISCO Main industries & markets

13. Hispanic Metropolitan Chamber 13 Jalisco It is the financial and commercial centre of the Mexican West coast

14. Hispanic Metropolitan Chamber 14 MexicoJalisco% Population (2004) 106 million 6.6 million 6.22 Area (km2) 1,967,0080,1374.07 Labour Force (2004) 42.3 million 2.8 million 6.62 Per Capita Income 6,000 USD 5,962 USD 6.50 GNP 603 billion USD 39.20 billion USD 100.3 Exports (2004) 173.2 billion 13.6 billion USD 7.85 Imports (2004) 178.9 billion USD 17.2 billion USD 9.61 Capital Mexico City Guadalajara Economic indicators

15. Hispanic Metropolitan Chamber 15 Highlights JALISCO 3 rd most important Mexican State 4 th recipient of DFI Area: 80,137 km 2, (4.1% of Mexico) Coastline: 345 km 82% Urban areas 38% less than 20 years old MAIN INDUSTRIES Food & beverages Electric & electronic Footwear & leatherwear Plastic products Textile & garments Decorative items & handicrafts Metalmecanic Automotive & auto parts Chemical & pharmaceutical Building materials DYI Tourism

16. Hispanic Metropolitan Chamber 16 Tijuana, B.C. 2,306 Tijuana, B.C. 2,306. Mexicali, B.C. 2,119 Nogales, Son. 1,694 Cd. Juárez, Chih. 1,578 Nuevo Laredo, Tamps. 1,013 Matamoros, Tamps. 1,117 Altamira Port 807 Pto. Tampico 741 Pto. Manzanillo 313 GUADALAJARA México City 542 Piedras Negras, Coah. 1,137 Railroads Highways International Airports Distances from Guadalajara to... Km Strategic Location

17. Hispanic Metropolitan Chamber 17 Railroads 1,108 Km Communications Telephone lines 1,060,000 Population with services 862,000 12 Industrial Parks in the interior of the state Roads Toll ways 566 Km Toll free 5,314 Km Rail port Inter modal terminal Automotive distribution center Train to Truck unloading place FIBER OPTICS 100% Infrastructure

18. Hispanic Metropolitan Chamber 18 Flight times to main U.SA. cities Seattle 5:00 hrs. (via L.A. or San Francisco) San Francisco 3.50 hrs. San Jose 3.40 hrs. Los Angeles 3.15 hrs. Chicago 3.45 hrs. Dallas 2.10 hrs. Houston 2:00 hrs. New York 4.15 hrs. Atlanta 3:10 hrs. Ontario, Ca. 3:00 hrs. Las Vegas 3:20 hrs. Portland, Or. 5:00 hrs. Portland

19. Hispanic Metropolitan Chamber 19 Electronics Telecommunication Equipment Chocolate and Candies Footwear production in general Ladies Footwear Jewellery Agave / Tequila PoultryMilk “Ever Green” Grass Pork Sugar Cane White Corn Agricultural GNP Contribution Tourism (beach destination) Eggs production Beef Jalisco leadership industries

20. Hispanic Metropolitan Chamber 20 Jailsco: main countries partners EXPORT MARKETS USA USA Canada Canada China China Switzerland Switzerland Singapore Singapore Germany Germany United Kingdom United Kingdom Venezuela Venezuela Uruguay Uruguay The Netherlands The Netherlands Guatemala Guatemala IMPORT MARKETS USA USA Taiwan Taiwan China China Singapore Singapore Germany Germany Japan Japan Canada Canada Switzerland Switzerland Malaysia Malaysia Hong-Kong Hong-Kong JALISCO exports to more than 35 countries

21. Hispanic Metropolitan Chamber 21 Export products to US Electronic products 70.61% Food and beverage 5.65% Transportation materials 5.33% Metal-mechanic3.74% Building materials 2.99% Health products 2.31% Textiles and garments 2.09% Subtotal92.72% Total100.0% Source: Seijal. Million USD Dollars.

22. Hispanic Metropolitan Chamber 22 PGSCA Trade mission

23. Hispanic Metropolitan Chamber 23 Portland Week in Guadalajara PWG will include: PWG will include: Trade MissionTrade Mission Cultural activitiesCultural activities Promote Tourism both waysPromote Tourism both ways Gastronomic activitiesGastronomic activities Government liaisonGovernment liaison Framework: Portland-Guadalajara Sister city Association

24. Hispanic Metropolitan Chamber 24 Trade mission companies Export Export Import Import Invest in Mexico Invest in Mexico Joint-ventureJoint-venture Strategic allianceStrategic alliance MaquiladoraMaquiladora

25. Hispanic Metropolitan Chamber 25 Trade Mission Meeting with government official Meeting with government official Match-making meeting with suitable partners Match-making meeting with suitable partners Visit to plants, locations, industrial parks, etc. Visit to plants, locations, industrial parks, etc.

26. Hispanic Metropolitan Chamber 26 Trade mission Export companies US Export AssistanceUS Export Assistance US Consulate in GuadalajaraUS Consulate in Guadalajara Oregon Economic Development DepartmentOregon Economic Development Department Import & investment companies Mexican Consulate Trade Commission Foreign Trade Bank of Mexico General Coordinator: Portland Hispanic Metropolitan Chamber / Mexican Consulate

27. Hispanic Metropolitan Chamber 27 Please contact us at: EEUU Portland Oregon 1234 SW Morrison Street Portland Oregon 97205 Tel. 503 274 1442 Fax. 503 274 1540 E-mail: vperez@sre.gob.mx vperez@sre.gob.mx CANADA Vancouver, Canadá 200 Granville Street, suite 1365 Vancouver, Canadá V6C 1S4 Tel. 604 682 3648 Fax. 604 682 1355 E-mail: bancomext@trademexbc.com bancomext@trademexbc.com