I preparing for the 1st TAR/AMPI Trade Mission to Mexico, I submit to you this excellent article that was done by our good friend Ambassador Tony Garza. I hope you all enjoy it. Have a good week.
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MEXICO / TEXAS ARTICLE
BORDER BUSINESS | TEXAS
Partnerships keep state competitive Antonio O. Garza Jr., U.S. Ambassador to Mexico, is a Rio Grande Valley native. He served at Cameron County judge and then as Texas Secretary of State under Gov. George W. Bush. He was appointed ambassador to Mexico in 2002.
With over $1 billion of trade each day between the United States and Mexico, our two countries are interconnected like never before. As a native of the border region, I can honestly say that nowhere is this more evident than along our 2,000-mile frontier, where cross-border ties have
meant long-standing and fruitful business between Mexican and American firms.
With a population of well over 100 million, a fast-growing middle class with increased spending power, and its geographic proximity to Texas, Mexico is an excellent market for companies looking to increase their sales. Many Texas firms already do business in Mexico: in 2006, Texas export sales to Mexico topped $54.8 billion, a 32 percent increase over 2002. This dynamic has solidified Mexico as the state’s number one export destination—and created new opportunities that support jobs and greater tax revenue for the “Lone Star State.”
Now, Texas companies stand to benefit even more from key Mexican growth initiatives. In July 2007, Mexican President Calderon unveiled his administration’s National Infrastructure Plan (NIP) aimed at boosting the country’s international competitiveness. As such, the Mexican government will announce nearly $141 billion in bid proposals over the next five years for over 300 key projects, including the following: >> Railways: The railroad system will invest $4.5 billion to fund more than two dozen major projects, including 881 miles of new railway track throughout Mexico and expansion of Mexico City’s train system. >> Seaports: Five new seaports are to be constructed, and another 22 ports will be either expanded or modernized. Approximately $6.6 billion in funding from private investors will be distributed throughout 17 of the projects. >> Airports: Three new airports will be constructed in the Mayan Riviera, Puerto Penasco and Ensenada, and another 31 airports will be modernized >> Energy Sector: The oil, gas and electric power sectors are a priority for Mexico, requiring the construction of oil platforms, power and LNG plants, and deep-water exploration projects. More than $76 billion has been earmarked for up to 40 projects aimed at boosting capacity for hydrocarbon production, exploration, refining and production. >> Environmental Technologies: The NIP allocates $14 billion for 50 projects, including three new aqueducts, seven wastewater treatment plants, and the modernization of 13 treatment plants in Acapulco. >> Highways: $26.6 billion will be targeted for the construction, modernization, and refurbishment of nearly 11,000 miles of highways and rural roads. >> Information Technologies: All of these infrastructure projects will require extensive use of information technologies in the areas of computers, security systems, and wireless and telecommunications networks.
To help U.S. and Texas businesses access these opportunities, the U.S. Commercial Service and USTDA have planned a unique business development event, U.S. and Mexico: Building Partnerships in Infrastructure, to be held February 26-28, 2008, in Mexico City. I will join U.S. Commerce secretary Carlos Gutierrez and Acting USTDA Director Leocadia Zak to bring U.S. and Mexican firms together at the conference, where they can learn more about the NIP, have one-onone meetings with key decision-makers on over three dozen handpicked projects, and develop immediate and long-term business in this market.
Many Texas companies have found Mexico to be a lucrative market. Reynolds International has been manufacturing earth moving equipment in McAllen, Texas, since 1953. A leader in the industry, the firm offers 40 models of pulledtype scrapers for the construction and agricultural
sectors, all of which are laser and GPS adaptable. With help from the local U.S. Commercial Service in Texas, the firm has utilized export counseling and the Gold Key matchmaking service to meet new sales representatives in Mexico, enabling the company to multiply it sales to that market. Mr. James Hausner, VP-Marketing, says that opportunities in Mexico will only continue to expand. “Our proximity to the border is great for business, and Mexico’s growing middle class is fueling demand for major projects and our earth moving scrapers in sectors such as housing and agriculture,” he says. “We’ve found that Mexican buyers have a great affinity for U.S. products, and that building long-term business relationships is key.” Hausner says that exports account for about half the firm’s sales, and support many of the 250 jobs at the company’s McAllen headquarters. Mexico is clearly open for business for Texas firms, and here in Mexico City we’re ready to help your exporting firm find the right contacts and grow your business.
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MEXICO / TEXAS ARTICLE
BORDER BUSINESS | TEXAS
Partnerships keep state competitive Antonio O. Garza Jr., U.S. Ambassador to Mexico, is a Rio Grande Valley native. He served at Cameron County judge and then as Texas Secretary of State under Gov. George W. Bush. He was appointed ambassador to Mexico in 2002.
With over $1 billion of trade each day between the United States and Mexico, our two countries are interconnected like never before. As a native of the border region, I can honestly say that nowhere is this more evident than along our 2,000-mile frontier, where cross-border ties have
meant long-standing and fruitful business between Mexican and American firms.
With a population of well over 100 million, a fast-growing middle class with increased spending power, and its geographic proximity to Texas, Mexico is an excellent market for companies looking to increase their sales. Many Texas firms already do business in Mexico: in 2006, Texas export sales to Mexico topped $54.8 billion, a 32 percent increase over 2002. This dynamic has solidified Mexico as the state’s number one export destination—and created new opportunities that support jobs and greater tax revenue for the “Lone Star State.”
Now, Texas companies stand to benefit even more from key Mexican growth initiatives. In July 2007, Mexican President Calderon unveiled his administration’s National Infrastructure Plan (NIP) aimed at boosting the country’s international competitiveness. As such, the Mexican government will announce nearly $141 billion in bid proposals over the next five years for over 300 key projects, including the following: >> Railways: The railroad system will invest $4.5 billion to fund more than two dozen major projects, including 881 miles of new railway track throughout Mexico and expansion of Mexico City’s train system. >> Seaports: Five new seaports are to be constructed, and another 22 ports will be either expanded or modernized. Approximately $6.6 billion in funding from private investors will be distributed throughout 17 of the projects. >> Airports: Three new airports will be constructed in the Mayan Riviera, Puerto Penasco and Ensenada, and another 31 airports will be modernized >> Energy Sector: The oil, gas and electric power sectors are a priority for Mexico, requiring the construction of oil platforms, power and LNG plants, and deep-water exploration projects. More than $76 billion has been earmarked for up to 40 projects aimed at boosting capacity for hydrocarbon production, exploration, refining and production. >> Environmental Technologies: The NIP allocates $14 billion for 50 projects, including three new aqueducts, seven wastewater treatment plants, and the modernization of 13 treatment plants in Acapulco. >> Highways: $26.6 billion will be targeted for the construction, modernization, and refurbishment of nearly 11,000 miles of highways and rural roads. >> Information Technologies: All of these infrastructure projects will require extensive use of information technologies in the areas of computers, security systems, and wireless and telecommunications networks.
To help U.S. and Texas businesses access these opportunities, the U.S. Commercial Service and USTDA have planned a unique business development event, U.S. and Mexico: Building Partnerships in Infrastructure, to be held February 26-28, 2008, in Mexico City. I will join U.S. Commerce secretary Carlos Gutierrez and Acting USTDA Director Leocadia Zak to bring U.S. and Mexican firms together at the conference, where they can learn more about the NIP, have one-onone meetings with key decision-makers on over three dozen handpicked projects, and develop immediate and long-term business in this market.
Many Texas companies have found Mexico to be a lucrative market. Reynolds International has been manufacturing earth moving equipment in McAllen, Texas, since 1953. A leader in the industry, the firm offers 40 models of pulledtype scrapers for the construction and agricultural
sectors, all of which are laser and GPS adaptable. With help from the local U.S. Commercial Service in Texas, the firm has utilized export counseling and the Gold Key matchmaking service to meet new sales representatives in Mexico, enabling the company to multiply it sales to that market. Mr. James Hausner, VP-Marketing, says that opportunities in Mexico will only continue to expand. “Our proximity to the border is great for business, and Mexico’s growing middle class is fueling demand for major projects and our earth moving scrapers in sectors such as housing and agriculture,” he says. “We’ve found that Mexican buyers have a great affinity for U.S. products, and that building long-term business relationships is key.” Hausner says that exports account for about half the firm’s sales, and support many of the 250 jobs at the company’s McAllen headquarters. Mexico is clearly open for business for Texas firms, and here in Mexico City we’re ready to help your exporting firm find the right contacts and grow your business.
