Baja: An Improving Mexico is hungry for Arizona
An improving Mexico is hungry for Arizona's business
Feb. 19, 2008 12:00 AM
With more than $1 billion in 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 Arizona, Mexico is an excellent market for companies looking to increase their sales. Many Arizona firms already do business in Mexico: In 2006, Arizona export sales to Mexico topped $5.3 billion, a 76 percent increase over 2002. This dynamic has solidified Mexico as the state's No. 1 export destination and created new opportunities that support jobs and greater tax revenue for the Grand Canyon State.
Now, Arizona companies stand to benefit even more from key Mexican growth initiatives. In July 2007, Mexican President Felipe Calderón 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 more than 300 key projects, including:
• Railways. The system will invest $4.5 billion to fund more than two dozen major projects, including 881 miles of new track throughout Mexico and expansion of Mexico City's train system.
• Seaports. Five new seaports are to be constructed, and an additional 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 Peñasco and Ensenada, and an additional 31 airports will be modernized.
• 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. The above projects will require computers, security systems and wireless and telecommunications networks.
To help U.S. and Arizona businesses access these opportunities, the U.S. Commercial Service and U.S. Trade and Development Agency (USTDA) have planned a unique business-development event, "U.S. and Mexico: Building Partnerships in Infrastructure," to be held Feb. 26-28 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-on-one meetings with key decision-makers on more than three dozen handpicked projects and develop immediate and long-term business.
Many Arizona companies have found Mexico to be a lucrative market. Bio Huma Netics of Chandler manufactures biological-enhancement products for wastewater treatment and agriculture. The company benefited from the U.S. Commercial Service's Gold Key Service at the embassy and in Phoenix, which provided export counseling, prearranged business meetings abroad and trade events that substantially increased its sales to Mexico. Lyndon Smith, the firm's manager, says, "Mexico continues to be one of our leading markets, and our export sales there have contributed substantially to the growth and expansion of our business."
Mexico is clearly open for business for Arizona firms, and here in Mexico City, we're ready to help your exporting firm find the right contacts and grow your business.
The writer is U.S. ambassador to Mexico. For more on the "U.S. and Mexico: Building Partnerships in Infrastructure" conference, visit www.trademeetings.com.
An improving Mexico is hungry for Arizona's business Feb. 19, 2008 12:00 AM With more than $1 billion in trade each day between the United States and Mexico, our two countries are interconnected like never before. As a native of the border region, Read More...