Transcript MEXICO EXPORTA - SIAVI - Sistema de Informacion Comercial

The Mexican transport equipment and
auto parts industry under the Mexico –
EU Free Trade Agreement
July 2003
1
The Mexico-EU FTA
The Mexico-EU FTA is part of a broader Global
Agreement (Economic Partnership, Political
Coordination and Cooperation Agreement).
The trade aspects of the Global Agreement were
adopted through two decision of the EU-Mexico Joint
Council:
 The Decision 2/2000 known as the FTA in goods effective
since July 1, 2000, and
 The Decision 2/2001 called the FTA in Services effective
since March 1, 2001.
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The Mexico-EU FTA. Decision 2/2000
The Mexico-EU FTA provides that by 2007,
around 96 per cent of bilateral trade will be
duty free.
The bulk of tariff dismantling for industrial
products will be completed by January 1,
2007.
Specific packages were agreed for products
considered sensitive such as transportation
equiment.
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The transport equipment and autoparts sector under
the Mexico-EU FTA
By 2007 Mexican-EU trade in transport equipment and autoparts
will be duty free.
A transition period was established:
At the entrance into force of the Mexico – EU FTA (July 1,
2000), the estimated percentage of EU duty free imports in
the auto sector in Mexico was 7.4%. That percentage went
to 15.2% by 2003 and will be 20.6% in 2005.
When the Agreement became effective, the estimated
percentage of duty free imports in the automotive sector for
Mexican products to the EU was 76.6% and went to 100% by
2003.
4
Source: ME, with data from BANXICO and EUROSTAT
Duty Phase-Out
Weighed average duty applied to exports of transport
equipment and autoparts in Mexico and the EU
11.3
Percentage
9.5
7.7
12.0
5.9
10.0
4.4
8.0
2.8
6.0
4.0
1.3 0.8
0.4 0.0 0.0 0.0 0.0
2.0
0.0
2000 2001 2002 2003 2004 2005 2006 2007
1.4 0.0
0.0
EU exports to Mexico
Mexican exports to the EU
July 1, 2000
Source: ME, with data from BANXICO and EUROSTAT
5
Duty phase-out in the Mexico-EU FTA for some
Mexican products that faced high duties in the EU
22.0
11.6
7.7
10.0
Percentage
10.0
14
12
10
8
6
4
2
0
6.0
4.5
4.5
MFN
2000
EU
2.3
2.8
1.6
3.5
3.3
3.2
1.9
0.8
3.9
5.3
2.1
0.9
0.0
0.0
1.8
0.0
2.2
0.0
1.1
0.0
0.0
0.0
Trucks /***
Special Vehicles
Vehicles /**
Motorcycles
Bodywork
Parts and accessories for bodywork /*
2000 2001 2002 2003
/* MFN preference granted by the EU
/** Base rate for vehicles was established in 4.4%
/*** If a vehicle weighs less than 8.8 tons. the base rate is 4.4%
Source: ME with data from EUROSTAT
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Acceleration of duty phase-out in the sector
During the second Mexico-EU Joint Council meeting, (13
May 2002) Mexico and the EU agreed to accelerate the
liberalization of several industrial products:
 As a result the EU eliminated duties for Mexican
products such as vehicles, among others.
 Mexico agreed to an early acceleration by 5 years
(from 2007 to 2002), of the duty phase-out for
European auto parts.
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Source: European Commission
Rules of Origin
 The
Mexico-EU FTA provides specific rules of origin for
transportation equipment and autoparts.
 The rules of origin established aimed at:
 increasing exports of those products
that include
inputs and originating materials from the region.
 avoiding that the agreed rules turn into trade barriers
 guaranteeing that the benefits of the agreement
remain within the region.
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Rules of Origin
The
agreed rules of origin guarantee that regional
products will benefit from the preferential treatment
(Decision 2/2000) upon submission of either:


(a) a movement certificate EUR.1; or
(b) an invoice declaration, given by the exporter
which describes the products concerned in
sufficient detail to enable them to be identified.
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Rules of Origin
Transport Equipment
 For
vehicles, the agreed rule of origin establishes that,
during a transitional period, the regional content required to
obtain preferential access in the EU or in Mexico is the
following:
 45% between the entry into force of the FTA and
January 2001;
 50% between January 1, 2002 and 2004; and
 60% starting January 1, 2005 and thereafter.
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Rules of Origin
Transport Equipment
 The
rule of origin for trucks, heavy trucks and buses
establishes a regional content requirement of 60%.
 Furthermore, a transitory rule for an export quota to the EU of
2,500 units was established, where the regional content is:
 45% between the entry into force of the FTA and up to
2002;
 50% between 2003 up to 2006;
 60% starting in 2007.
A
revision clause was established, in case Mexican
producers cannot obtain the inputs from the EU, then the
regional content will be 45%.
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Rules of Origin
Autoparts
 For the most important products for Mexico, there is a rule
that allows the use of raw materials that are not available
in Mexico, which could be transformed and exported.
 The
rule or origin recognizes the transformation of raw
materials (iron, aluminum, etc.) into final products (pistons,
axles, bodywork parts, etc.).
 For
engines, the rule establishes 50% of regional value
from the entry into force of the FTA until 2005. After 2005,
the regional value rule will be 60%.
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Mexico’s automotive policy under the MEUFTA
The Mexico – EU FTA allows Mexico’s Decree for the automotive
industry to remain in place until December 31, 2003.
Mexico
maintains import permits for new cars, as well as export
and national content requirements.
 Since the entry into force of the Mexico – EU FTA and up to
2004, Mexico will allow an import quota for new vehicles of
14% of the national vehicle market. Between 2005 and 2006
the share increases to 15%.
 During the time Mexico’s automotive decree is in force, the
main part of the quota is reserved to producers that comply
with the decree. After that, any person can request part of
the quota, which will be administered by Mexico through
principles of non-discrimination and quota optimization.
As
of January 1, 2004 the Mexican auto industry will be fully
liberalized.
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Mexico’s automotive policy under the MEUFTA
The Mexico – EU FTA eliminates all import prohibitions or
restrictions other than customs duties and taxes, whether
made effective through quotas, import licenses or other
measures (Art. 12)
However, FTA Annex IV.6 allows Mexico to maintain
import prohibitions or restrictions on nearly all used
vehicles.
Mexico requires an import permit for used vehicles made
in the U.S., Canada or the EU. Permits are granted only
for special purpose vehicles for which there is no relevant
production in Mexico, such as ambulances and vehicles
adapted for handicapped people.
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Commercial development of the Mexican
transport equipment and auto parts industry under
the Mexico-EU FTA
15
Liberalization policies have allowed the Mexican
transport and equipment industry to become a
major player in international trade
Mexican Total trade
of transport equipment and auto parts*
56.0
60
NAFTA
Billion dollars
30
19.9
20
10.3
10
9.7
57.2
45.7
50
40
54.5
24.2 26.1
12.5
9.8
30.8
10.2
11.7 16.3
20.5
1995
1996
34.6
39.5
Imports
22.2
21.3
23.6
16.8
12.7
14.7
Exports
21.9
24.7
29.0
33.8
33.2
33.6
1997
1998
1999
2000
2001
2002
0
1993
1994
* Includes products from chapters 73, 84, 85, 86, 87, 88, 89, 95 and 98 of the HS.
Source: ME with data from BANXICO
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Mexican vehicles compete well
in the international market
Mexico is the 10th biggest exporter of transport equipment.
Mexican Vehicle Exports
18
16.5
15.3
Billion Dollars
16
14
12.4
11.0
12
9.7
10
9.7
7.5
8
6
13.9
4.2
5.1
4
2
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Source: ME
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In 2002, Mexico’s top transport equipment and auto parts
exports accounted for 70% of the total exports of the sector
Top ten transport equipment and auto parts industry products
exported by Mexico in 2002, million of US$
Product
Total
US
EU
Rest
Motor cars of a cylinder between 1,500 and 3,000 cc
8,599.5
7,261.5
324.4
1,013.6
Motor cars of a cylinder exceeding 3,000 cc
4,637.3
4,376.3
0.9
260.1
Vehicles of a gross weight not exceeding 5 tonnes
3,826.7
3,683.4
0.0
143.3
Diesel vehicles of a gross weight not exceeding 5 tonnes
1,394.3
1,394.2
0.0
0.1
Spark-ignition engines exceeding 1,500 cc
1,243.3
1,201.7
15.3
26.3
Brakes, servo-brakes and parts thereof
1,050.3
997.3
21.5
31.5
Safety belts
776.9
774.6
0.1
2.2
Road tractors for semi-trailers
631.7
610.8
0.0
20.9
Other parts and accessories for motor vehicles
616.3
591.0
11.9
13.4
Diesel vehicles of a cylinder between 1,500 and 2,500
cm3
527.9
316.3
89.9
121.7
Source: ME
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Trade in transport equipment and auto parts between
Mexico and the EU represents 7.1% of Mexico’s trade in
the sector
 In 2002, Mexican exports of vehicles and auto parts* to the EU reached
927 million dollars (md).
Mexico - EU Trade
Transport equipment and auto parts
3.7
3.7
3.3
2.9
Mexican
Imports
form the
EU
0.8
Mexican
Exports to
the EU
Billion Dollars
2.6
2.0
1.9
2.3
1.5
1.3
1.4
0
2.5
1.5
1.3
1.3
0.9
0.8
0.9
0.5
0.6
0.5
0.4
0.7
1994
1995
1996
1997
1998
1.1
1.0
1.2
1999
2000
2001
* Includes products from chapters 73, 84, 85, 86, 87, 88, 89, 95 and 98 of the HS.
Source: Ministry of the Economy (ME) with data from BANXICO and Eurostat
2002
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Trade in vehicles between Mexico and the EU
represents 6.4% of Mexico’s trade in these products
Mexico - EU Trade
Transport equipment
1,863
2000
Mexican Exports
Mexican Imports
1800
1600
Million Dollars
1,568
1,510
1400
245
1,094
1200
994
1000
522
800
600
400
200
0
1,447
1,265
327
487
134
259
67
73
62
89
60
29
83
75
9
573
177
32
574
416
1994 1995 1996 1997 1998 1999 2000 2001 2002
Source: Ministry of the Economy (ME) with data from BANXICO
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For the Mexican industry of transport equipment
and auto parts, the European market offers a great
potential given the size of the market
Total Imports of vehicles and auto parts
EU*
US
206.5
206.2
186.4
Billion dollars
200
150
119.5 125.9
131.6
143.2
157.6
104.2
88.5
100
58.6
61.6
56.6
61.4
71.2
199.6
78.5
86.3
83.9
88.1
50
0
1993
1994
1995
1996
1997
*Extra EU imports ** Estimated for the EU
Source: ME with data from EUROSTAT and USDOC
1998
1999
2000
2001
2002**
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The Mexican industry has the potential to improve its
position as an EU supplier
Percentage of EU Imports
Main suppliers of vehicles and auto parts (2002*)
26.6
US (1)
19.5
Japan (2)
6.5
Czech Rep. (3)
5.2
5
Hungary (4)
South Korea (5)
4.3
Poland (6)
3.2
Switzerland (7)
2.9
Slovakia (8)
Turkey (9)
2.6
Canada (10)
2.6
Mexico (19)
0.8
Percentage
* Estimated data for 2002
Source: ME with data from EUROSTAT
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Foreign Direct Investment has transformed the
Mexican transport equipment and auto parts
industry into a competitive worldwide producer
In 2002, 614 enterprises with foreign capital operated in Mexico’s
transport equipment and auto parts industry
 Between 1999 and 2002, Mexico received US$6.5 billion in
foreign direct investment (FDI), which accounted for 33% of
total FDI in Mexico’s manufacturing sector;
 The main investors in the sector are the US (51.6%), Japan
(32.8%), Canada (9.9%), Germany (5.0%) and Spain (2.8%);
 This FDI concentrates mainly on production of parts and
accessories for cars and trucks (47.7%), car and truck
assemblies (24.9%), parts and accessories for the electrical
system (11.2%), and suspension and their parts (4.1%).
Source: ME
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The transport equipment and autoparts industry plays an
important role in the Mexican economy
In 2001, this sector:
represented 16% of Mexico’s GDP;
between 19% of total Mexico’s exports;
employed more than more than 18%
of Mexico’s
labor force;
attracted US$1.3 billion in Foreign Direct Investment
(FDI).
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Clusters in the transport equipment and auto parts
industry
CHIHUAHUA
FORD (ENGINES)
G. PALACIO
SONORA
KENWORTH
(TRUCKS)
CHIHUAHUA
LINAMAR
(ENGINES)
MEXICALI
RAMOS
ARIZPE
COAHUILA
1
G.M.
(PC & UV)
GARCIA
NAVISTAR (TRUCKS)
NUEVO
LEON
S.L.P.
DURANGO
FORD
(PC)
SCANIA
(TRUCKS)
TAMPS.
HERMOSILLO
Dimler-Chrysler
(TRUCKS)
CD. SAHAGUN
ZACATECAS
S.L.P.
CUAUTITLAN
AGS.
CHRYSLER
(ENGINES & UV)
NISSAN
(PC & ENGINES)
2
GTO.
SALTILLO
AGS.
JALISCO
COLIMA
GUADALAJARA
HONDA (PC)
G.M.
(UV)
YUCATAN
QRO.
D.F.
CHRYSLER
(UV)
HIDALGO
MEX.
MICHOACAN
FORD
(PC & UV)
3TLAX.
CAMPECHE
MOR.
PUEBLA
TABASCO
SILAO
GUERRERO
G.M. (ENGINES)
CHRYSLER (PC & UV)
M.BENZ (PC & UV)
BMW (PC)
MASA (TRUCKS)
TOLUCA
OAXACA
CHIAPAS
TOLUCA
SANTIAGO
TOLUCA
TULTITLAN
PUEBLA
NISSAN
(PC & UV)
CIVAC
V.W.
(PC & ENGINES)
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EU firms in the automotive sector are already
established in Mexico
Firm
Location
BMW
Toluca, State of Mexico
Daimler-Chrysler
Toluca, State of Mexico; Saltillo, Coahuila;
Lake Alberto, State of Mexico.
Ford
Cuautitlan, State of Mexico; Hermosillo, Sonora;
Monterrey, Nuevo Leon.
General Motors
Ramos Arizpe, Coahuila; Silao, Guanajuato
Honda
El Salto, Durango.
Mercedes Benz
Santiago, State of Mexico.
Nissan
Aguascalientes, Aguascalientes; Cuernavaca,
Morelos
Volkswagen
Puebla, Puebla
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Challenges ahead
The strong presence of Mexican vehicles and auto parts in the
world market reflects the quality and competitiveness of the
Mexican industry. The Mexico – EU FTA, gives the opportunity for
Mexico to:
 enjoy preferential access in one of the most important
markets in the world,
 further specialize in production of certain type and models
 attract more FDI and promote strategic alliances
 incorporate more firms to the export sector, mainly small and
medium sized enterprises
 generate more and better paid jobs
27
Challenges ahead
Mexico´s
National Development Plan 2001-2006,
establishes, as one of the priorities, to increase and
extent competitiveness in the country. Therefore the
Ministry of the Economy has produced
“Competitiveness Programs”.
For
the moment, Mexico has developed specific
programs for the textile-garment sector, the
electronic sector and the software sector. The
transport equipment and autoparts sector
competitiveness program is on the verge of being
concluded.
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To obtain further information visit:
www.economia.gob.mx
www.economia-bruselas.gob.mx
[email protected]
Mexico’s Mission to the EU
Mexican Ministry of the Economy
94, Av. Franklin Roosevelt
1050 Brussels, Belgium
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