MEXICO TRADE MISSION AND EXPO CARNES 2009
Mexico City — Monterrey
February 22 - 28, 2009
The International Office of the Iowa Department of Economic Development (IDED) will lead a trade mission to Mexico City and Monterrey, February 22 - 28, 2009. Participating Iowa companies will have on-site meetings with potential end-users, distributors and/or collaborative partners. IDED will also be coordinating Iowa participation in Expo Carnes 2009, the 25th Meat Industry International Exhibition & Convention, February 25 - 27.
Space is limited. The deadline for application is December 15, 2008. Read further for more information or contact contact Mark Fischer at 515.242.4760 or mark.fischer@iowalifechanging.com (agriculture companies), or contact Peggy Kerr at 515.242.4745 or peggy.kerr@iowalifechanging.com (manufacturing companies).
Mexico is a familiar trading partner for both the United States and Iowa. Since 2003, Mexico has been the second largest market for Iowa exports with US$1.5 billion exported in 2007 which was over 16 percent of Iowa exports. Exports have increased at least 20% each of the last four years! Given the magnitude of the trade between the United States and Mexico, there are abundant opportunities for U.S. firms in Mexico. This trade mission visits two of the largest business centers in Mexico.
Mexico City is one of the most important economic hubs of Latin America. It is the most important economic, industrial and cultural center in the country, and the most populous city. The city proper (Federal District) produces 21.8% of the country's Gross domestic product. According to a study conducted by PricewaterhouseCoopers, Greater Mexico City (with a population of 19.2 million) had a GDP of $315 billion in 2005 (at purchasing power parity), ranking as the eighth-richest urban agglomeration in the world after the greater areas of Tokyo, New York, Los Angeles, Chicago, Paris, London and Osaka/Kobe, and the richest in Latin America. Mexico City alone would be the 30th largest economy in the world. Mexico City is also one of the largest financial and commercial hubs in Latin America.
Monterrey is the capital city of the northeastern Mexican state of Nuevo León. Also known as "Sultana del Norte" (Lady of the North), Monterrey is the third city in importance in all Mexico, a modern industrial and business center and also a primary distribution and agricultural center. The city proper has population of 1 million, and the metropolitan area of Monterrey has a population of 3.8 million. Monterrey is a major industrial center among cities in Mexico, producing a GDP of US$78.5 billion (2006). Monterrey is home to many transnational conglomerates, accounts for about 95% of the State of Nuevo Leon's GDP, and 30% of Mexico's manufactured exports.
Mexico has a stable democracy, well-managed economy, an increasingly educated workforce and a developed infrastructure. While the official language is Spanish, other languages such as English and German are present in most urban centers. Mexico has a good transparency rating that continues to improve. Its legal systems differ from US legal systems and most often require skilled Mexican legal advice when conducting business.
While Mexicans are a diverse and independent people, U.S. standards, business practices, and consumer styles are embraced in Mexico, especially by the large segment of the population that is under the age of 25 years. However it can be difficult to capitalize upon its full potential due to issues such as its legal and banking systems, regulations and standards, and language and culture. Mexico's size and diversity are often under appreciated by exporters as it can be difficult to find a single distributor or agent to cover this vast market.
Mexico is, for many companies, a natural extension of their sales program in the U.S. Thanks to the North American Free Trade Agreement (NAFTA), U.S. exporters often enjoy competitive advantages in exporting to Mexico. And the proximity of Mexico can mean that U.S. exporters have significantly lower logistics costs, especially for larger items, than their Asian and European competitors.
Since the signing of NAFTA in 1993, Mexico has continued to expand its manufacturing base considerably. And bilateral trade between the U.S. and Mexico has grown over 200% in the last 12 years. Mexico's industrial GDP has grown 5% per year for the past 6 years and shows little sign of slowing down. Over half of its industrial output, or some $100 billion, was exported to the U.S. last year. At the same time, Mexican manufacturers tend to buy their inputs, their manufacturing equipment, and their services from the U.S.
Mexico faces the same challenges from lower cost producers elsewhere in the world that the U.S. manufacturing sector confronts. Mexican manufacturers realize they can no longer compete solely on the basis of low-cost labor. This represents significant opportunities for U.S. providers of goods and services that have competence in the areas of energy costs, labor costs, raw materials/input costs, logistics costs, access to capital, and increasing product design capabilities.
Mexico's National Infrastructure Program (NIP) is also creating many opportunities. Recognizing the importance of infrastructure development to Mexico's economic development and competitiveness, in July 2007 President Felipe Calderon launched the NIP to dramatically increase infrastructure investment, in energy, transportation and the environment. This major focus on infrastructure presents over $141 billion in new opportunities for U.S. firms until 2012. The NIP will use public-private partnerships to finance the NIP, with significant Mexican public sector investment.
Mexico's NIP highlights over 300 infrastructure projects on all the sectors, from Energy (Electricity, Oil — Gas Production, Refinery, Gas and Petrochemicals), Environmental (Water Supply and Sanitation, Irrigation and Flood Control), Transportation and Basic Infrastructure (Highways, Railways, Multimodal Infrastructure, Ports, Airports, Housing, Hospitals, Schools), Telecommunications (Optical Fiber, Transmission Towers, etc), Security (Military, Navy, Air Force, Customs, Treasury, etc) and Tourism (Resorts, Hotels, Retirement Developments). The NIP outlines goals and strategies to increase the coverage, quality and competitiveness of Mexico's infrastructure.
Additional market background information is available at:
U.S. Country Commercial Guide for Mexico [www.buyusainfo.net/docs/x_6663558.pdf]
US Department of Commerce Market Research Library [www.buyusainfo.net]
U.S. Department of State Background Notes [www.state.gov/r/pa/ei/bgn/]
If you are unfamiliar with the Mexican market, need updated market information, or just want to see what type of contacts are available prior to making a participation decision we encourage you to apply for an Industry-Market Analysis (IMA) and Sales Associate Search (SAS) package. An IMA is a customized market-industry overview covering market potential, competitors, competitive products/services, marketing channels, market characteristics and distribution, advertising and promotions, and requirements to conduct business in the market. The SAS identifies and pre-screens potential customers, agents, distributors or other sales associates based upon the industry-market parameters and criteria you provide. The research and screening process includes gathering current information from industry sources followed by interviewing potential candidates for a match with the criteria provided and compatibility with your market objectives.
The subsidized fee for an IMA/SAS is $750. Those companies who then decide to participate in the trade mission will be able to deduct the IMA fee from their mission participation fee. The IMA is prepared by our long-standing representative in Mexico who will be coordinating the trade mission. The deadline for IMA applications is October 15. This will ensure the research can be completed and report prepared in time for your review and a final decision regarding mission participation.
Expo Carnes 2009 [www.expocarnes.com], the 25th Meat Industry International Exhibition & Convention will be held in Monterrey February 25-27, 2009. It is the largest meat industry event in Latin America and meets every two years to bring meat suppliers, distributors and meat packers from different segments of the meat and poultry industry together. The exhibition has had a continuous growth rate of 25% recent years. It is appropriate for all suppliers to the meat industry including new products, equipment, ingredients, and technology. IDED will coordinate Iowa participation for those attending or exhibiting, who may also participate in the Trade Mission.
Sectors: All industry sectors are invited to participate in this mission.
Itinerary: Participants will arrive in Mexico City Sunday evening, February 22, 2009. Individual agenda reviews will take place in the evening followed by an informal networking dinner. Monday morning will begin with an orientation and briefing. One-on-one pre-qualified appointments will be held in the area for participating companies whether they are seeking to develop or expand direct export sales, locate distributors or agents, conduct market research or have other goals. Participants in the Mexico City portion of the trade mission, who are exhibiting at Expo Carnes will depart on Tuesday to allow for show set up. The balance of the trade mission delegation will travel to Monterrey on Wednesday, February 25, for meetings to take place the balance of the week. Participants depart for the U.S. on Saturday morning, February 28.
Basic Mission Fee: $2,500 per participating Iowa company which includes the necessary research, individualized in-country business appointment schedules, interpreters, group ground transportation, reasonable ground transportation expenses for business appointments, briefings and hosted meals, pre- and post-mission assistance, on-site support while in Mexico, pre-mission business briefing and complete mission planning.
IDED Services: IDED's representative in Mexico, Business Development Partners, S.A. de C.V. (BDP), will conduct the necessary market research in order to arrange business meetings appropriate for each participating company's needs. The meetings will be held at the local company's facility whenever possible. BDP staff has worked with numerous Iowa companies during the 13 years they have represented the State of Iowa.
IDED will hold a pre-mission briefing to acquaint the participants with the overall itinerary, travel requirements, travel/lodging arrangements, country background, each other, etc. A thorough commercial and economic orientation is provided during the mission.
IDED/BDP will make hotel reservations and local transportation arrangements. Airport-hotel transports are provided for those traveling on the mission airline itinerary. Ground transportation costs for mission appointments are generally paid by IDED, although participants may incur some expense. A preliminary mission air itinerary is contained in the Traveler Information Sheet. Participants may choose to use the State's travel agent coordinating this trip or their own. Participants arriving or departing the country on different airlines/flights may be responsible for their own airport-hotel transportation expenses. Participants do travel as a group on any in country flights during the mission. Each participant is responsible for payment of their travel and lodging expenses. A percentage of per diem is allowable under ETAP.
Each participant is responsible for payment of their travel and lodging expenses. A percentage of per diem is allowable under ETAP.
 Passport/Visa Requirements:
All Americans traveling by air outside the United States are required to present a passport or other valid travel document to enter or re-enter the United States. Upon arrival in Mexico, business travelers must complete and submit a form (Form FM-N) authorizing the conduct of business, but not employment, for a 30-day period. Travelers entering Mexico for purposes other than tourism or business or for stays of longer than 180 days require a visa and must carry a valid U.S. passport. For the latest entry requirements, contact the Embassy of Mexico Web site [http://portal.sre.gob.mx/usa/].
General Travel Information: The following Web sites provide links to international travel and health information. Please read through this information carefully.
Travel Insurance and Travel Health Insurance: U.S. medical insurance plans often do not provide coverage for health costs when traveling abroad, let alone allow for emergency expenses such as medical evacuation. Many companies offer supplemental policies. Resources for international medical emergency services, health insurance and health information is available upon request.
EXPORT TRADE ASSISTANCE PROGRAM
Export Trade Assistance Program (ETAP Funding): ETAP funds may be available on a first-come, fist-served basis to qualified business applicants for the trade mission. ETAP will reimburse 75% of an eligible company's direct expenses up to $3,000 per pre-approved Trade Mission.
To view eligibility requirements and eligible expenses for reimbursement, click on the ETAP page to your left.
Estimated Mission Expenses:
The deadline for submitting all application information is December 15, 2008, although the sooner the items are received, the sooner the necessary research can begin. Applications should be detailed and specific. Include previous contacts to be contacted, and also those not to be contacted. Provide a profile of good candidates if possible.
- Mission Application [MS Word: 203k] [PDF: 62k]
- Participation Fee of $2500 per company
Checks payable to IDED Foundation. Invoice available upon request
- ETAP Application Form, if eligible [MS Word: 63k] [PDF: 1MB]
- Traveler Information Sheet [MS Word: 164k] [PDF: 737k]
- Brief (2-3 paragraph) company/product description for use in a promotional brochure
- Electronic version of relevant marketing materials, or 20 sets of materials.
Submit application materials via e-mail or mail to:
Mark Fischer or Peggy Kerr
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, IA 50309
Contact Mark Fischer at 515.242.4760 or mark.fischer@iowalifechanging.com (agriculture companies), or contact Peggy Kerr at 515.242.4745 or peggy.kerr@iowalifechanging.com (manufacturing companies).
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