Open de l'International 2016 - Focus Mexique

Mexique

Focus MexiqueVannes, 4 juillet 2016

SpeakersNatalia PEREZPartenaire Bretagne Commerce International – Mexique

Virginie TILLET - Eric FARUELDirection générale des Douanes

Market & trends



Country DataOverview

Total area: 1,964,375 km2

Capital: Mexico City

Currency: Mexican Peso (MXN)

• Population:121,005,815 – 11th place worldwide

• Languages:

Spanish

Native languages (Nahuatl, Otomí, etc)


Mexico Economic Data2015

GDP: USD $1,142 Bn GDP per capita: USD $9,431

Growth: 2.5% Inflation: 2.7%

Trade Balance: -14.5% Unemployment Rate: 4%

FDI: USD$ 30.28 bn

FDI Main sectors: Manufacturing 50%, Media 9.3%, Transportation 8.1%, Financial Services 8%, Retail 7.9% Main Investors: U.S. 52%, Spain 9%, Japan 5%, Germany, Canada 4% (respectively); Brazil, the Netherlands; Belgium and France 3% (respectively) Receiving States: Mexico City 16%, Nuevo Leon 12%, State of Mexico 9%, Jalisco 8%, Chihuahua 8%


Infrastructure• 76 airports (64

international and 12 domestic, also serving national level)

• 117 ports (cabotage 49 and 68 in height and cabotage)

• 27 thousand kilometers of railroads

• More than 370 thousand kilometers of roads


Foreign TradeTrade BalanceImports • USD $395 Bn in 2015• Main import partners: U.S. (47.4%), China (17.7%), Japan (4.4%), Korea

(3.7%), Germany (3.5%), Canada (2.5%)• Main products: Electronic equip. (21.6%), Machines, engines, pumps

(17.1%), Vehicles (9.4%), Oil (6.7%), Plastics (5.6%), Medical, technical equip. (3.8%), Iron and steel (2.4%), Iron or steel products (2.4%), Organic chemicals (2%) and Rubber (1.7%)

Exports • USD$ 381 Bn in 2015• Main export clients: U.S. and Canada (84%), Europe (5.4%), Asia (4.3%)• Main products: Vehicles (23.7%), Electronic equip. (21.3%), Machines,

engines, pumps (15.5%), Oil (6.0%), Medical, technical equip. (4.0%), Furniture, lighting, signs (2.6%), Plastics (2.2%), Gems, precious metals, coins (1.9%), Iron or steel products (1.5%), Vegetables (1.5%) Focus Mexique

Vannes, 4 juillet 2016

Foreign TradeTrade Agreements

• 12 FTAs with 46 countries, 32 Agreements for the Promotion and Reciprocal Protection of Investments ( APPRIs ) with 33 countries and 9 agreements of limited scope ( Economic Complementation Agreements and Partial Scope Agreements) within the framework of the Latin American Integration Association (ALADI )

• The Treaty of Transpacific Partnership (TPP)

Agreement between 12 countries in Asia Pacific (Australia, Brunei Darussalam, Canada, Chile, United States, Malaysia, Mexico, Japan, New Zealand, Peru, Singapore and Vietnam)

Objective:modernize trade rules to open new business opportunities, investment and employment . Represents 40% of global GDP and 25% of trade


Foreign TradeTrade Agreements• Mexico-EU FTA (July 2000)

Since 2007 all industrial products are not subject of import duties. Some agricultural products considered as sensitive are not subject to the tariff reduction schedule (meat, cereals, dairy products, live anmals, eggs, potatoes, beans, apples, coffee, canned tuna, sugar, among others)

Rules of origin

National treatment for imported products (norms and regulations)

Sales to federal government

All services (exceptions: financial services, air and maritime services, etc. Local regulations apply for construction, environment, insurance, energy and transportation)

Intelectual property protection Focus MexiqueVannes, 4 juillet 2016

Market AttractivenessWhy exporting to Mexico?

• Stable democracy

• The most populated Spanish speaking country in the world. Over 120 million people, 79% urban

• 10% wealthy, 45% live in poverty (>US$10 per day); 45% is middle class

• Young population: median age of 27

• There is a large installed base of manufacturing in a wide range of sectors

• The World Bank estimates GDP growth to strengthen from 2.9% in 2015 to 3.5% in 2017

• In 2013 and 2014, Mexico passed sweeping reforms in the energy, telecom, labor, financial, and education sectors


Mexico - FrancePresence of France in Mexico

• 30,000 French citizens living in Mexico

• +250,000 students of French language in Mexico

• 1,500 French students in Mexico (1st foreing community)

• 2,600 Mexicans studying in France (3rd destination)

• 1,600 companies with French capital established in Mexico (US$11 bn)

Mexico City, Nuevo Leon, Puebla and Queretaro

• 100,000 employees of French companies in Mexico

• 300 members of the French-Mexican Chamber of Trade and Industry


Mexico - FrancePresence of France in Mexico

• Some French companies in Mexico:


Danone FoodAerotecnología, Eurocopter, Safran AerospaceAlstom EnergyPeugeot, Valeo, Michelin, Renault, Actia AutomotiveTeFal Home Appliances

Crédit Lyonnais, Société Générale BanksPernot Ricard BeveragesAventis, Biomerieux, Sanofi Winthrop, Servier Life Sciences

Mexico - FranceTrade• France is the 12th trade partner and the 13th investor country in Mexico

(5th and 11th respectively among European nations)

• Mexico is the 2nd Latinamerican market for French Exports

• 3,700 French companies export to Mexico (46% SMEs)

• Total trade US$5.4 bn in 2014. Steady growth since the last 5 years

• Imports France-Mexico: US$3.8 bn in 2014 (0.9% of total imports)

• Exports Mexico-France: US$ 1.6 bn (0.6% of total exports)

• Main imported products from France: Parts and products destined for repair and maintenance of aircrafts, vaccines (humans), perfumes, refillable gas lighters (pocket), wines, blow molding machines and prefabricated buildings


Regulations


Trade Regulations, Customs and StandardsNon – Tariff BarriersAll technical regulations, standards, duties and other import controls are determined based on the HS code product classification

• Prior Licences: import certain merchandises that are controlled (sensitive goods- national safety, health, etc.): petrochemicals , used machinery, vehicles, clothing, computers , weapons and used tires.

• Quotas: negotiated under Treaties. Certain amount of goods which come under a preferential tariff ( tariff quota ) to imports during a given time

• Mexican Official Standards (NOMs):

• Certification: safety related standards• Self-executing: labels, packaging , warranties , instructions

• Voluntary standards: NMXs Focus MexiqueVannes, 4 juillet 2016

Trade Regulations, Customs and StandardsTaxes and DutiesValue Added Tax

• Mexican Customs collects a value-added tax (IVA) from the importer on foreign transactions upon entry of the merchandise into Mexico

• IVA is assessed on the cumulative value of: the plant value (F.O.B. price) of the product(s), plus inland freight charges, and any other costs listed separately on the invoice such as export packing, insurance, plus the duty, if applicable

• Temporary imports of raw materials intended for export in final goods may be exempt from IVA under certain conditions

• The IVA is 16% country-wide


Trade Regulations, Customs and StandardsTaxes and DutiesValue Added Tax

• IVA is paid on other fees for such services as inland Mexico freight, warehousing, and custom brokerage fees, if applicable

• The IVA is a pass-along tax, typically recovered at the point of sale when the product is sold to the end-user. Each time the product is sold the buyer is charged the IVA. If resold, the importing company will then be reimbursed


Opportunities


Sectors of OpportunityAerospace• Manufacture, maintenance, repair, customization, engineering, design

and auxiliary services (airlines, test laboratories, training centers, etc.) for commercial and military aircraft.

• Exports: USD$6,366 bn in 2014

• Double digit annual average growth since 2004

• Imports: USD$ 5.416 bn in 2014

• 302 aerospace companies and support entities

• Main clusters: Baja California (76), Sonora (53), Chihuahua (34), Queretaro (31), Nuevo Leon (30), Jalisco (16), Coahuila (13)

• Around 30% have NADCAP and AS9100 certifications


Sectors of OpportunityAutomotive• 7th producer of vehicles in the world; largest producer of light vehicles in

Latin America• Automakers and auto parts industries: 3% of GDP and 17% of

manufacturing GDP (2014)

• Light vehicle production grew by 9.8% (2013-2014): 3.22 m units. Heavy vehicle industry recorded a 23.6% increase in production: 168,882 units

• Exports: 2.6 m units. U.S. is the leading export market

• 24 production complexes in 14 states - from assembly and bullet-proofing to vehicle and engine casting and stamping –

• General Motors, Ford, Chrysler, Volkswagen, Nissan, Honda, BMW, Toyota, Kia, Mazda, Volvo and Mercedes-Benz

• Accumulated FDI in the OEM and auto parts industries 2006-2014: USD$23,490 bn - 10% share of total FDI


Sectors of OpportunityLife SciencesBiotechnology• 406 companies: 33% human health segment, 19% industrial

applications, 14% food solutions, 13% environmental applications

• 2nd most important country in Latin America in number of clinical trials (2015).

• Major supplier of biotechnology products to the United States

• Clusters: Main research centers in Guanajuato, Nuevo León, Morelos


Sectors of OpportunityLife SciencesMedical Devices

• Production: USD $15.2 bn in 2014

• 92% of supplies for manufacturing electronic medical devices are imported; disposable medical devices 32%

• Exports: USD$7.7 bn 2014, 9nth largest medical device exporter globally, the largest in Latin America and the leading supplier to the United States.

• Medical, surgical, dental or veterinary instruments and equipment accounted for 76% of Mexican medical devices exports

• 2,344 companies, 655 recorded exports in 2014, mainly located in the states of Baja California, Chihuahua, Tamaulipas, Sonora, Nuevo Leon and Mexico City


Sectors of OpportunityLife SciencesPharmaceutical• Production: USD $14.9 bn in 2014• Drugs, vaccines and antisera, vitamins, pharmaceutical preparations for

veterinary use, among others• Exports: USD $1.8 bn• 718 companies: Merck, Boehringer Ingelheim, Schering Plough, Bayer,

Astrazeneca, Pfizer, Glaxosmithkline, Baxter, Eli Lilly Company, Novartis• Main clusters: Mexico City, Jalisco, State of Mexico, Puebla and

Michoacan• One of the most developed markets in Latin America in regulatory matters

- Federal Commission for the Protection against Sanitary Risk (COFEPRIS)

• Accumulated investment 2005-2014: USD$ 3.2 bn• Consumption: USD$ 7.6 bn


Sectors of OpportunityElectronics• 5 main subsectors: audio and video, computers and office, semiconductors,

communications, medical equipment and optical, control, measuring and precision instruments

• Production: USD$ 63 bn• Exports: USD$ 79.7 bn• Main destinatiosn: U.S. (85.4%), Canada, Colombia and the Netherlands• 1st exporter of flat screens and 4th exporter of computers globally • Main companies: Samsung, LG, Toshiba, Foxconn, Flextronics and Intel• 766 companies• Main clusters: Baja California, Chihuahua, Mexico City, Nuevo Leon, Sonora

and Jalisco• Accumulated FDI 2005-2014: USD$ 11.6 bn (U.S., the Netherlands, Sweden

and Japan)


Sectors of OpportunityEnergyRenewable Energies• Reforms in 2012-2014: Increase electricity generated from clean energy

sources, including nuclear energy, to 35% by 2024 and 50% by 2050; Reduce greenhouse gas emissions by 30% by the end of the decade

• Total effective installed capacity for power generation (2014): 65,452 MW, 16,047 MW of them from renewable energies (wind, solar, hydraulic, geothermal and biomass), representing 24.5% of total installed capacity

• For 2028 installed capacity for power generation through renewable energies will increase in 19,761 MW - Wind 59%, hydraulic 21%

• +230 pllants in operation and construction for power generation through renewable energies

• Oaxaca and Veracruz lead in number of wind and biomass projects (respectively)


Sectors of OpportunityEnergy• FDI 2010-2014: 45 projects• Main investors: Spain, U.S. and Germany • Companies: Potencia Industrial (Mexico), Dynamik Kontroll (U.S.)

Kyocera, Sanyo (Japan), Jabil Circuit (U.S.) Solartec and ERDM Solar (Mexico), Alstom (France)

Upstream Oil & Gas• Energy Reform: local and foreign private investment allowed• Market size: USD$7.24 bn in 2015• One of the 10 largest oil producers in the world (2.9 m barrels per day in

2014), and the 3rd largest in the Americas after the U.S. and Canada• New suppliers: ExxonMobil BP, Chevron, Murphy, etc. bidding for

contractors, sub-contractors, or suppliers of equipment and/or technology.


Sectors of OpportunityAgribusiness• Growing population, an expanding economy, and an increasingly market-

oriented agricultural sector drives the demand• 4.5% of National GDP. Market value: USD $59.9 bn (271.6 m tons)• Imports: Cereals and oilseeds (USD$3.3 bn), meat (USD$3.6 bn) and dairy

products (USD$1.4 bn)• Mexico is considered the most obese country in the world. The Mexican

government has made it a priority to reverse this through educational campaigns and new food nutrition laws that target school children

• A growing number of Mexican consumers are pursuing healthier lifestyles, which include better eating habits, making Mexico an attractive market for French exporters of organic and other healthy food products

• Expanding consumer interest in wine and a thriving middle class derived in an expected annual growth rate of 12% in consumption in the coming years. Mexico among the countries with the fastest growing wine consumption in the world


Sectors of OpportunityAgribusinessDairy• Consumption: 12,806 thousand of metric tons. Fluid milk drives the demand.

Shift toward specialized dairy products - lactose-free, high calcium, and weight-control or weight-loss goods. Increasing amounts of fluid milk and non-fat dry milk for processing use

Meat & Pork• Production: 3,185 thousand Mt. Consumption: 3,904 thousand Mt• Despite high beef prices constraining consumption among low- to medium-

income consumers, growth trends (economic and population), boost overall demand. Price-sensitive market for beef products. Consumers turn to other proteins, including pork and poultry.

• Pork production in Mexico is expected to rise (availability of animal feed-grain- at lower prices, better farm management and strong demand from Asia). Pork imports in Mexico consist primarily of hams and mechanically deboned meat for the preparation of sausages, deli hams, and other cold cuts.


Sectors of OpportunityRetail• Mexican retail sector is the 12th largest globally

• Sales: USD $365 bn, expected to reach USD $428 bn in 2016

• 3.3% of GDP

• Supermarkets: 5,428 stores.

Sales USD$42.3 bn 2015. Expected growth 2016: 5.8%

• Department stores: 2,055 stores.

Sales USD$14.6 bn 2015. Expected growth 2016: 9.5%

• Specialized stores: 39,183 stores.

Sales USD$17 bn 2015 Expected growth 2016: 7.6%


Sectors of OpportunityLuxury Products

• Leader in Latinamerica in the luxury market (followed by Argentina and Brazil)

• Best prospects: Beauty products, clothing, liquors and fashion accessories

• Less than 30% of the market has access to luxury brands, but middle class segment is having more access

• Sales: USD $14 bn , 11% growth in 2014

• French luxury brands entering the Mexican market: Mademoiselle Améria (swimsuits); Ernest (footwear); Escales (casual clorhing); and Aubade (lingerie)


Sectors of OpportunityBeauty and Personal Care

• Sales: USD $2 bn (1% of national GDP)

• Large growth potential: only 20% of homes have some facial care product

• 2nd largest market in the Latin American region for cosmetics

• 70% of products targeted for women, 30% for men

• Largest growth segment: Hygiene and beauty, 8.2% growth


Sectors of OpportunityServices

• Education services

• Information technologies

• Transportation services

• Travel & tourism services

• Architectural and engineering services


Risks


Risks• Mexico’s size and diversity is often under-appreciated. It can be difficult to

find a single distributor or agent to cover this vast market • The Mexican legal system could be complicated. Consult with competent

legal counsel before entering into any business agreements with Mexican partners

• The banking system is solid but interest rates remain relatively high

• Conduct thorough due diligence before entering into business with a Mexican firm – be conservative in extending credit and alert to payment delays

• Mexican customs regulations, product standards and labor laws may present pitfalls

• Continued violence involving criminal organizations has created insecurity in some parts of Mexico


Business practices, intercultural aspects


Doing Business in Mexico

• Crucial to develop and maintain close relationships with clients and partners

• Mexicans prefer direct communication such as telephone calls or face-to-face meetings

• Email is widely used and social media apps such as WhatsApp are increasingly popular for quick interactions

• Mexican companies are extremely price conscious, seek financing options, tend to desire exclusive agreements, and value outstanding service and flexibility

• Mexican consumers can be quite sophisticated, yet a large proportion of the population is price sensitive


Doing Business in Mexico• The best strategy to enter the Mexican market is to find a local representative

or distributor. In many industries the decision to select a supplier depends on the demonstrated commitment to service, initial training and spare parts availability. Due to regional concentration throughout Mexico, representation locally will yield better results than a single, nation-wide distributor

• Use Spanish-language materials and speak Spanish whenever possible or employ Spanish- speaking sales representatives

• Participate in industry trade events and conferences. Allows a better understanding of the Mexican market, talking to suppliers, industry experts, and end users and gives business exposure and brand recognition

• Commercial piracy and counterfeiting and weak enforcement of intellectual property rights: have an overall strategy to protect your IP. Seek advice from local attorneys or IP consultants who are experts in Mexican law


La minute DOUANES


Focus Mexique

Optimiser ses échanges avec le Mexique

grâce à l’origine préférentielle►Un produit a toujours une ORIGINE NON PREFERENTIELLE (ONP)

= origine de droit commun → application du TEC (Tarif extérieur commun) = le taux de droit de douane

« normal »

►Un produit peut avoir une ORIGINE PREFERENTIELLE (OP) : dans le cadre d’un accord commercial, des avantages tarifaires sous la forme de droits de douane réduits ou nuls sont accordés aux produits « originaires »

(selon les conditions posées par l’accord) des pays signataires

Un tel accord commercial existe entre l’Union européenne et le Mexique : Accord UE – Mexique publié au JOUE L157 du 30/06/2000

Les entreprises européennes bénéficient de cet accord à un double titre :- quand elles importent des produits originaires du Mexique : elles acquittent des droits de douane réduits ou nuls ;- quand elles exportent des produits UE vers le Mexique : leurs clients acquittent des droits de douane réduits ou nuls → il s’agit d’un avantage commercial que les exportateurs européens doivent valoriser vis-à-vis de leurs prospects

L’origineTaxation au Mexique - Market Access Database

L’origineL’origine préférentielle

Exemple de conditions

SH Dénomination Condition Condition

8301 Cadenas, serrures et verrous (à clef, à secret ou électriques), en métaux communs; fermoirs etmontures-fermoirs comportant une serrure, enmétaux communs; clefs pour ces articles, enmétaux communs

Fabrication dans laquelle toutes les matières utilisées doivent être classées dans une position différente de celle du produit

Fabrication dans laquelle la valeur de toutes les matières utilisées ne doit pas excéder 50 % du prix départ usine du produit

L’origineTaxation à l’entrée dans l’UE – Rita encyclopédie

L’origine préférentielleLes justificatifs►Soit un certificat EUR1 visé par leservice des douanes →

►Soit une déclaration d’origine surfacture (DOF) : l’exportateur auto-certifiel’origine de ses produits en apposant unemention sur sa facture.- jusqu’à 6000 € de valeur, tous les expor-tateurs peuvent librement émettre une DOF - au-delà de 6000 €, seuls les exportateursagréés peuvent émettre une DOF.

Donc avec le statut d’exportateur agréé c’estplus simple, plus rapide, moins coûteux.Pour l’obtenir, contactez votre bureaude douane.

EUR1

Contacts : Pôle Action Economique

Accueil : 09 70 259 074Conseiller aux entreprises : 09 70 274 777

[email protected]

Customs


Questions/réponses


Merci de votre attention !



SpeakersNatalia PEREZPartenaire Bretagne Commerce International – Mexique

Virginie TILLET - Eric FARUELDirection générale des Douanes