Mexico a Good Market for Novice US Exporters
 Jan Norman - The Orange County Register
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Santa Ana, Calif. — When business owners consider exporting, their thoughts often travel halfway around the world.
Karen Zens, the U.S. Commerce Department's highest-ranking trade official in Mexico, wants companies to remember that Mexico is one of the best markets for novice exporters.
It's close, has a growing economy, has the same time zones as the United States, honors intellectual property better than many nations, and receives most goods without tariffs, she said.
The Mexican economy is stable although slowing slightly from 2006, Zens said.
Gross domestic product is expected to grow 3.5 percent in 2007, compared with 4.8 percent last year. Inflation is projected at 4.1 percent, up a tick from 4.05 percent last year.
Mexico is our second-largest export market behind Canada, buying $134 billion in U.S. products and services in 2006, Zens said. We also have huge investments in Mexico — $94 billion from 1994 to 2004 — six times as big as second-place Spain's.
Some U.S. products are in greater demand than others, Zens said.
The best current opportunities are automotive parts and supplies, electronic components, energy, airport equipment, travel and tourism services, plastic materials and resins, telecommunications equipment, environmental products and services, low-income housing and prefabricated construction, safety and security equipment and services, hotel and restaurant equipment, and education and training services.
The retail market, Zens said, is "very price sensitive. There is a very high-end segment, but they just hop a plane to shop in the U.S."
On the other hand, services are booming, accounting for $30 billion in U.S. exports to Mexico, Zens said.
Making the right business connections in a foreign country can be tricky.
One of the offerings of the U.S. Commercial Service is setting up meetings between U.S. exporters and qualified companies in a foreign country.
"We can do partner searches and background checks on Mexican companies," Zens said.
"If you're really interested in exporting to Mexico, you should visit in person; they want to meet you in person," she said.
U.S. exporters must be aware of Mexican business customs that can cause problems, Zens added.
"They push for easy credit terms, and you must be careful about agreeing to them. They have difficulty saying no, so they might be friendly in a meeting but never order from you."
"Also, use a qualified interpreter. You want to make sure you are talking to the right person in a company, not just the person who speaks English," she said. |
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