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	Mexico: A “Grande” Export Opportunity...Right Next Door! Mexico — the second largest buyer of U.S. products after Canada — is a key market for U.S. and Virginia exporters! Mexico purchased $97.5 billion worth of U.S. goods, one-seventh of all U.S. exports in 2003. Japan, our third largest export market, buys about half the U.S. goods that Mexico does. And, Mexico remains a consistent buyer of U.S. goods and services. After peaking in 2000, U.S. exports to Mexico have remained level, near $100 billion annually, for the last three years. Why Mexico? As a North American Free Trade Agreement (NAFTA) partner with U.S. and Canada, Mexico offers significant advantages to Virginia manufacturers. You will enjoy preferential tariff treatment if your products meet one of the four qualifying NAFTA Rules of Origin. Transparent regulations and minimum barriers allow most U.S. goods to be shipped by truck or rail for near seamless entry into Mexico. Opportunities also abound for Virginia companies to sell to the 2,826 maquiladoras that are 79% U.S. owned. These are big importers! While they account for just about half of Mexico's industrial manufacturing output, maquiladoras buy two-thirds of all industrial manufacturing imports to Mexico. Doing business in Mexico can make Virginia firms more competitive at home and in other markets overseas. The Hispanic minority community is the largest in the U.S. and their buying power is the fastest rising. Since 1990, Hispanic buying power tripled to approximately $675 billion in 2003, and should reach $1.2 trillion by 2010. Items translated for entry into Mexico can also be used to target the Spanish speakers here in the U.S., and in Spanish speaking countries around the world. What’s Mexico Buying? Many of the U.S. goods which had increased sales to Mexico in 2003 are items Virginia companies could easily sell to Mexico. These include straw, explosives, arms & ammunition, aircraft, arts & antiques, tin, lead, fabrics, musical instruments, organic chemicals, and ships and boats. Mexico has been, and will remain, a significant market for Virginia. Our firms sell almost $400 million worth of goods to Mexico annually, making it our seventh largest buyer. And, this figure does not include Virginia’s surging service exports to Mexico. Virginia’s Top-Ten Exports to Mexico in 2003: 1. Machinery 2. Electrical machinery 3. Knit apparel 4. Plastics 5. Pharmaceutical products 6. Vehicles 7. Paper/paperboard 8. Optical and medical instruments 9. Mineral fuel/oil 10. Man-made fabric Virginia companies are tapping new opportunities as the Mexican economy picks up steam. In fact, many Virginia exports to Mexico experienced significant growth from 2002-2003 including: 1. Leather art/bags 1,344% 2. Pens 1,325% 3. Man-made filament/fabric 340% 4. Iron and steel 326% 5. Mineral fuel/oil 259% 6. Vehicles 241% 7. Musical instruments155% 8. Tin 122% 9. Pharmaceuticals 108% 10. Tanning, dyes and paints 105% Help For Virginia Exporters Interested in Mexico: Mexico is an important NAFTA neighbor and we encourage Virginia firms to develop sales and distribution there. In order to help Virginia exporters expand their sales in Mexico, the VEDP Division of International Trade has an office in Mexico City, staffed by Margo Galvan. Margo is available to assist Virginia companies with preparation and execution of business in Mexico. Margo Galvan, VEDP Trade Representative The Commonwealth of Virginia U.S. Trade Center Liverpool No. 31, Suite 105 Col. Juarez 06600 Mexico, D.F. Tel: 011 52 555 140-2674 Fax: 011 52 555 535-2545 E-Mail: MGalvan@YesVirginia.org Margo and the VEDP Division of International Trade conduct two Virginia Trade Missions to Mexico every year. During these missions, Virginia companies visit Mexico and meet one-on-one with pre-screened agents, distributors and buyers matched to their unique market objectives. On occasion, we have also conducted inward Mexican missions, where Mexican importers and agents visit Virginia, to meet with suppliers. Virginia companies are also encouraged to meet with Margo Galvan as she tours the state during the annual fall Virginia Walkabout. Over the past two years, the VEDP has conducted four Trade Missions to Mexico. A total of 21 companies have participated, representing diverse products such as adhesives, electronics, building products, software, fiber optics, health and beauty, mining and engineering services. In addition to the VEDP’s missions, Governor Warner led a fall 2003 Mission to Mexico with 16 Virginia companies. These firms had highly successful meetings in Monterrey and Guadalajara. Most have already, or expect to, generate sales or secure local representation as a result of participating in the mission. Opportunity is Knocking Right Next Door… These Trade Missions are a great way to open the door and generate sales in Mexico. If you are interested in joining Virginia’s next Trade Mission to Mexico, September 6-10, 2004, contact Kim Weir, International Trade Manager: KWeir@YesVirginia.org. Additional Resources: For more information on the VEDP Division of International Trade’s services, programs and events, or for additional resources on Mexico, NAFTA and exporting, visit our website at: www.ExportVirginia.org Sources: World Trade Atlas, Virginia Exports to the World Annual 2003. April 2004. Available by subscription at <www.gtis.com> U.S. Government. “ Mexican Manufacturing Devours U.S. Goods: Importing Components and Exporting Finished Products” Export America: March 2004 <http://www.export.gov/exportamerica/> Ambicultural.com website: “The Straight Facts About the U.S. Hispanic Market Online” section. <http://www.ambicultural.com/link2> Send comments or feedback to the editor at EMorgan@YesVirginia.org DISCLAIMER – The contents of this article are intended to provide pertinent inform-ation for Beyond Virginia subscribers interested or already involved in international trade. While every effort is made to convey accurate and timely information, the contents of this article are not intended as specific advice to its readers. Our intent is solely to convey information.