Germany is now the third most important commercial partner in Mexico

The automotive sector boosted the commercial exchange between Mexico and the European country that was registered in 2017, of about 23 billion dollars.

By Redacción MNN Monday, July 16, 2018 comments

 

The commercial exchange between Mexico and Germany recorded in 2017, of about 23 billion dollars, made the European country Mexico’s third most important trading partner, only behind the United States and China.

Two years earlier, Germany was the fifth commercial partner of Mexico, behind Canada and the European Union.

“Germany is already more important than before, it is the third largest trading partner of Mexico in the world, after the United States and China and it is the first of the European Union countries,” said Mario Chacón, head of the Promotion Unit of Global Businesses of ProMéxico.

Photo Credits: Website Reforma

Sales from Mexico to Germany totaled 6.95 billion dollars in 2017, a historical figure that implied an annual increase of 76 percent, according to the Ministry of Economy. This advance was the largest since 1999 and was driven mainly by the automotive sector.

“Mexico continues to be a very important production platform for German companies, for example, companies in the automotive sector such as Volkswagen and Audi, which arrived at the end of 2016, play an important role in the figure,” said Oliver Knoerich, director of the Economy and Global Affairs Section of the Embassy of Germany.

For example, the export of light cars to Germany grew about 39 times in 2017 alone. In addition, last year accounted for 33.3 percent of total exports to the European country, in 2016 they were only 1.5 percent.

Photo Credits: Website Foreign Policy

Commerce, with windows of opportunity

In recent days, the first shipment of pork from Germany arrived in Mexico as part of the quota that was opened after the tariffs of 25 percent imposed on the United States. As well as this product, flours, prepared beverages and cheeses of German origin could increase their presence in the country.

The recent renegotiation of the Free Trade Agreement between the European Union and Mexico (TLCUEM), will play a key role in the commercial relationship between Mexico and Germany, since it facilitates some procedures and phytosanitary controls for the export of food and beverages.

“It is very important that Mexico finds other sectors and that both Mexico and Germany do not rest on the success of the classic industries, that is for both,” he explained, referring to technology, the creative industries and the automation of processes as sectors. that can increase commercial dynamism.