Wisconsin
LGA Consulting began as a result of winning the Request For Proposal from the State of Wisconsin to open and operate its first Mexico trade office. At that time, on the heels of the signing of NAFTA, Wisconsin exports to Mexico ranked only 7th. Today, Mexico is the 2nd most important market for Wisconsin exports and more than maintaining pace with export growth to China, which is still a distant third.
WISCONSIN TRADE OFFICE MEXICO EVOLUTION
In 1994, the Wisconsin Trade Office Mexico, under the auspices of LGA Consulting, started with two employees in a small 75 m2 office in Mexico City. Today, the 150 m2 office, now located in the industrial heart of the Valley of Mexico in the Northern Mexico City suburb of Tlalnepantla, houses a Director, Sub Director, two senior trade specialists, two junior trade specialists, and support staff, all of whom work on Wisconsin and Wisconsin company-related projects.
When the office first opened, services were limited to distributor and rep searches for Wisconsin companies trying to find an appropriate intermediary to sell their products in Mexico. Over the years, the office broadened its service mix to include new, value-added business, sales, and client development services, product market viability analysis, sales manager searches, detailed regulatory orientation and asístanse, and channel market and distribution strategies for both exporters and in-country Wisconsin subsidiary offices. And, of equal importance, the office is ensuring that its strategic asístanse is backed up with practical, hands-on services to help implement and execute these strategies on the ground in Mexico. In this way, the Wisconsin Trade Office – Mexico ensures that it offers the types of services that Wisconsin companies need and that they cannot emulate without in-country presence.
Since 1994, the office has worked extensively with Wisconsin water companies, something understandable considering the Strong water focus in the state. However, during the past few years, the office has developed broad expertise in the Mexican water sector and its government and private sector opportunities, and it is developing its expertise in other environmental and energy areas. Generally in the past, government sales opportunities were considered to be difficult to identify and virtually unreachable for Wisconsin companies. The Wisconsin Trade Office – Mexico is working to eliminate these problems so that Wisconsin companies, with appropriate Mexican intermediaries, are no longer missing these opportunities.
WISCONSIN EXPORTS TO MEXICO: POSITIVE EFFECTS OF NAFTA AND THE NOT SO NEGATIVE EFFECTS OF THE CURRENT CRISIS
While there were high expectations for NAFTA in the US, there was some uncertainty about how NAFTA would impact Wisconsin companies. Nonetheless, during the 10 years following NAFTA implementation, Mexico went from 7th to 2nd as Wisconsin´s most important export destination behind Canada, a position that it securely holds despite the growing importance of China. In fact, prior to the international economic crisis, Wisconsin export growth to Mexico remained with or above figures for exports to China. Likewise, Wisconsin annual export figures to Mexico came very close to the $2 billion plateau.
Despite the effects of the crisis, Wisconsin exports to Mexico continued to grow in 2008 and only experienced a single digit decrease in 2009. In fact, exports from Wisconsin to Mexico went from 7.6% of total Wisconsin exports in 2007 to 8.5% in 2008 and up to 9.5% in 2009. And, despite the decline in the global economy, 2009 figures for Mexico grew for the first time to represent a third of Wisconsin exports to Canada. All of this happened despite the fact that Mexican GDP declined 8-10% in 2009. The Mexican GDP is forecast to increase by 4% in 2010 and to recuperate entirely what was lost in 2009 by the end of 2011. As a result, if Wisconsin exports to Mexico should continue to be vibrant in 2010 they will probably grow by double digits again in 2011.
WISCONSIN EXPORTS TO MEXICO: DESPITE THE CRISIS, GREATER THAN ALL OF THE REST TO LATIN AMERICA IN 2009
It has been reported in the US that the current international economic crisis hit Mexico harder than any other Latin American country. Supposedly, the 8-10% decrease in GDP was a sign of serious problems in Mexico and many people questionned its ability to bounce back from this crisis with the rest of the Americas. However, Wisconsin export figures for 2009 would seem to dispell these concerns.
2009 Wisconsin exports to Mexico eclipsed the total of the rest of Latin America combined for the first time ever. And, this happened despite the fact that exports to Brazil were steady and exports to Chile and Peru (the 3rd and 4th most important destinations in Latin America after Mexico and Brazil) imported more than a third more from Wisconsin in 2009 than they did the previous year.
WISCONSIN 2009 EXPORT STATISTICS: MEXICO & LATIN AMERICA
WISCONSIN DEPARTMENT OF COMMERCE, BUREAU OF EXPORT DEVELOPMENT, MEXICO OUTREACH CONSULTANT INFORMATION
If Wisconsin companies would like to contact the Wisconsin Trade Office Mexico/LGA Consulting for assístance or services, they can reach our office toll free from the US at 1-888-750-0988.
They can also contact the Wisconsin Department of Commerce, International Division, Mexico/Latin America Outreach Consultant, Sue Dragotta, in one of the two following manners: E-mail: susan.dragotta@wisconsin.gov
Phone: 1-262-691-5147
Spreadsheets
Wisconsin Exports to Mexico by Product 2009
United States Exports (Origin of Movement - Total) Via Wisconsin 2009