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iconMexican Market [   January  2016 ]

 

Mexico, formally known as United Mexican States, a country in North America covers the area of nearly 2 million square kilometers. It is America’s fifth largest country and the world’s fifteenth largest country. It is the world’s eleventh most populated country, comprising 123 million populations. Mexican economy grows by 2.4% in 2014 with 2.143 trillion US$ of GDP. Its important natural resources include petroleum, silver, copper, gold, lead, zinc, natural gas and forests. Major industries include automobile, electronics, electronic appliances, aviation, medical equipments, petroleum, mining, food and beverage and tourism. Key import goods include industrial machines, agricultural equipments, raw materials, transport equipments, autoparts, aircrafts, assembles, etc. Key export goods include industrial goods, petroleum, nickel, fruits, coffee and cotton. Currently, Mexico attracts global automobile industry of all brands due to its low cost of production and skilled labours, making Mexico the world’s seventh biggest car manufacturers, following China, USA, Japan, Germany, South Korea and India. In 2014, Mexico produced 1,915,709 cars and 1,449,597 commercial vehicles, making a total of 3,365,306 units with the growth rate of 10.2% higher than 2013. Tyre manufacturers comprise Bridgestone, Goodyear, Michelin, Pirelli, Continental, Yokohama, Hankook, JK Tyre Industries and Cooper Tyres (data from Royal Thai Consulate in Los Angeles, USA).

Mexico is both producer and consumer of natural rubber. In 2014, Mexico produced 15,600 tons and consumed 90,800 tons of natural rubber. It imports natural rubber substantially due to inadequate production quantity compared to consumption quantity.

It imported 78,500 tons of natural rubber in 2014 (data from International Rubber Study Group) with the import value of 185 million US$ (data from World Trade Atlas) mainly in the form of STR20, followed by concentrated latex and RSS3. However, import quantity and value dropped considerably due to slowing global economy and falling rubber price. Indonesia is the main source of Mexican rubber import (34.35%), followed by Guatemala (34.23%), Malaysia (12.51%), USA (8.79%) and Thailand (only 5.15%) due to competition on price, distance, transport cost and non-tariff barriers such as registrations of importers (Padron de Importadores), product standard, hygiene, country of origin, restricted goods, prohibited goods, import quota, import documentation, appraised value, import of product samples, product labeling, custom clearance procedures, bringing about obstacles and burdens to Mexican exporters and importers.

However, it is likely that Mexican will import and consume more natural rubber in the future due to large expansion of production sector, especially automobile and other industries. In this regard, Agricultural Department of Royal Thai Consulate in Los Angeles, USA requested the Thai Rubber Association to invite association members to present data on Thai natural rubber products to chambers of commerce, importers and consumers of natural rubber in Guadalajara, a major industrial zone Mexico on 28 January 2016 in Guadalajara, Mexico.

From the above data, it suggests that Mexico is a potential market for natural rubber and tyres with likelihood of further expansion. The Thai Rubber Association would like to propose that Thai government, private and related sectors promote trade and investment and good international relation with Mexico, which is an alternative rubber market to substitute major existing markets.

Signature
Mr. Chaiyos Sincharoenkul
President

 

 
 
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