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Honda Announces New Investment

Admin | 10.05.2013

Japan is a strategic ally for Mexico’s economy, is it so that in coming months new investments from Japanese companies will be arriving as a consequence of the trade relation between both countries re-launched, Ildefonso Guajardo, Minister of Economy, affirmed.

Japan is a strategic ally for Mexico’s economy, is it so that in coming months new investments from Japanese companies will be arriving as a consequence of the trade relation between both countries re-launched, Ildefonso Guajardo, Minister of Economy, affirmed.

After meeting with Fumio Kishida, Japanese Minister of Foreign Affairs, Minister Guajardo explained that Japan is very much interested in investing in Mexico, especially in the automotive sector; announcement was made by Honda about a new investment to be made by the Group in Mexico.

“There are several Japanese companies analyzing new projects. Mazda is one of them and recently made an announcement; in addition several other companies in the auto parts industry join the assemblers to invest. Investment dynamics in Mexico is extraordinary”, Guajardo said in an interview. As a matter of fact, Japan is leader in Mexico not only for Direct Foreign Investment (FDI) in the automotive sector, but also in vehicles imported into Asia from Mexico.

From total FDI received by Mexico from the world in 2012, Japan was the second partner investing new capitals here, accounting for 13% of the US$12.659 billion, i.e. around US$1.650 billion.

Data from the Ministry of the Economy show that from January 1999 to December 2012, companies with Japanese FDI established in Mexico invested US$5.855 billion; 87% of this figure is concentrated on manufactures, among them electronics and automotive, and the rest in commerce.

Ildefonso Guajardo pointed-out that after the enforcement of Mexico-Japan Economic Association Agreement, trade exchange grew 39% going from US$14.548 billion in 2005 to US$20.268 billion in 2012, posting 7% annual growth.

He explained that Japan is an ally to Mexico because their investment here, mainly in the automotive sector, has reached an important level and that the recent visit made by President Enrique Peña to Japan led to dynamics to re-launch the trade relationship between both countries.

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