BILATERAL TRADE

According to Mexico´s Secretary of Economy and the Ministry of Finance of Japan, in 2009, bilateral trade between Japan and Mexico registered US$ 14.2 billion, a decrease of 29.5 percent from 2008. The decline in two-way trade is attributed to the impact of the global financial crisis which affected both the Mexican and Japanese domestic markets with lower imports, particularly of parts, components and systems in two main industries, automotive parts, and electronics. Another important consideration in the decrease of trade flows between Japan and Mexico in 2009 was the economic recession in the United Sates, Mexico’s most important trade partner. The American market is also a destination for exports of dozens of Japanese companies with production plants in Mexico, mainly electronic appliances such as flat screen TV sets, auto parts and automotive systems, as well as automobiles.       

Mexican exports to Japan totaled 2.8 billion dollars (down 26.3%), while Mexican imports of Japanese products reached 11.4 billion dollars (down 30.2%) during 2009. Although the global economic downturn persisted during most of the year, Mexican products such as fresh or chilled blue-fin tunas, asparagus, salt, distilled spirits, surgical instruments, avocados and boneless beef increased their presence in the Japanese market.

With the aim to strengthen an already important relationship, in February 2010, Mexico’s President Felipe Calderon Hinojosa visited Japan and met with Prime Minister Yukio Hatoyama. Both leaders agreed to maximize efforts to promote further the strategic partnership between Japan and Mexico. The President of Mexico met also with the Keidanren leadership and stressed, before a joint session of the Mexico-Japan Business Committee in Tokyo, the opportunities for expanding trade and investment which have yet to be realized between the two economies.

Those opportunities stem from market access preferences and investment liberalization rules in both countries under the Mexico-Japan Economic Partnership Agreement, now in its fifth year of implementation. 2010 and 2011 will see significant improvement in two way trade and investment flows, as both the Mexican and Japanese economies are expected to experience further recovery and post positive GDP growth rates. Moreover, the objective during this decade is to raise Mexican exports to Japan not only consolidating Mexico as one of the main suppliers of agricultural products, but also of industrial products and services.