1 CONTENT INTRODUCTION …………………….............................……3 WELCOME IN BRIEF Yucatan: A state with exporting tradition WHERE IS YUCATAN LOCATED? ………………......….…..5 STRATEGIC GEOGRAPHICAL LOCATION Distances YUCATAN GENERAL INFORMATION ..……………………7 BASIC ECONOMIC PROFILE INFRAESTRUCTURE Airport Ports WHAT DOES YUCATAN OFFER…………..…………….… 11 EXPORTABLE OFFER PYMEXPORTA CENTER DOEY Foreign Trade Yucatan Logistics INTERESTING SITES...................................................15 2 WELCOME The State of Yucatan has initiated this new century becoming the financial, business, academic, cultural, medical, industrial and most important trade center in the southeast of Mexico. Yucatan offers a high degree of safety and quality of life for all the population, and also innumerable opportunities for investment and growth in all economic sectors. Opportunities are multiplying day by day under a favorable climate for business development created by the labor cordial between the State Government and the private sector. Institutional support and respect for the internal life of organizations are two important factors that support the investment and healthy economic growth of Yucatan. In addition, Yucatan, the nearest industrial center between Mexico and the East Coast of the United States and the door to Central America, also offers a broad range of quality products to international markets. IN BRIEF Yucatan enjoys a privileged geographical position. It is the closest connection point from Mexico to the European Union. The distance from Yucatan to the east coast to the United States is 36 hours by sea and one and a half hour by plane. It is also a very important access spot for all the Caribbean, Central and South America. This fact is an advantage, among other ones like 20% less transportation costs to the U.S.A. compared with Central America and the central region of Mexico, for the importing & exporting logistic processes regarding to easier product access. Yucatan is consolidated as the financial, business, academic, cultural, medical, industrial and most important trade center in the southeast of Mexico. At the same time, Yucatan has an exporting tradition of more than a century that has made it a natural exporter State that enjoys of 12 Free Trade Agreements signed by Mexico. The variety of products in Yucatan allows offering various options for international importers in diverse industrial sectors such as textile, jewelry, agribusiness, food & beverages and machinery & equipment. This state offers a broad range of unique high quality products that are recognized worldwide like the bee honey (one of the bests internationally) and the habanero pepper (denomination of origin). Yucatan is an extraordinary place to import products, consolidate and expand global business. 3 Yucatan: A state with an Exporting Tradition In the last decade of the 19th Century, Henequen or Sisal as it is known in English, became one of the main products in Mexico, representing more than 24% of the country’s total exports by 1894, and more than 80% of world’s sisal fiber production by 1916. As a result, Yucatán positioned itself on international business markets and established the foundation for its productive and commercial forces, which prospered during the first half of the following Century. In the 70´s, Yucatan exported products originated from Henequen and other goods like seafood, fruit juices, clothing and honey. The main export destinations were the U.S.A., Italy, France, Japan, Canada, Central America and Germany. Years later in the 1980´s manufactured products made of plastic, textile products, wood, footwear and construction materials became the main outbound merchandise for Progreso, Yucatan’s main seaport. The strategy of open borders to trade, as a public policy for increasing market access and FDI, transformed Yucatan at the end of the 20th Century into one of the regions in Mexico with a greater capacity to attract the investments and assembly operations of multinational corporations. This in turn motivated local investors to become involved as suppliers of export goods. Today, at the beginning of the Third Millennium, the idea that Yucatan has traditional ties to the external sector is reaffirmed. Through the years, an export culture has been developed, which is evident in the historical memory of a competitive people, capable of offering their products, underlying a rich, ancestral culture, fitted for the demands of a global society. 4 STRATEGIC GEOGRAPHICAL LOCATION Yucatan is located approximately 32 hours by ship and an hour and a half by plane from the United States of America. It is also accessible by train from the port of Salina Cruz on the Pacific Ocean. The transportation costs from Yucatan to the U.S.A. are reduced by 20% in comparison to those of Central Mexico or from Central America to the same destinations. Its geographic position is privileged because it allows having access to the Golf of Mexico and it is situated in front of the Southern Coast of the U.S. Its position is so advantageous that the most important cities of Florida, Texas, Louisiana, Alabama and Mississippi are reachable in approximately 90 to 120 minutes flying from the international airport of Merida. Also, the Yucatan Peninsula is the contact point to the islands of the Caribbean and the Central American countries. Merida, the capital of Yucatan, is the closest industrial center from Mexico to the east cost of the U.S. It is also connected to Europe, Central and South America and the Caribbean. Merida is the business, financial, technological, medical and educational services most developed center of the Southeast of Mexico. Distances The following table shows the distance from Merida to the border cities in the north and southeast of Mexico: 5 The next table shows the sea distances from Progreso port to other important ports in the east of Mexico and to some other important ports in the world: 6 BASIC ECONOMIC PROFILE Population of the State of Yucatan: 1,921,959 habitants (CONAPO, 2009). Principal city: Merida (Capital) 845,767 habitants (CONAPO, 2009). Other important cities: Progreso, Valladolid, Tizimin, Progreso, Uman and Motul. Principal production activities: Agriculture, fishing, apiculture, construction, manufacturing of food and beverages, clothing and textile manufacturing. Principal companies: Monty Industries (clothing), JRA Yucatan (jewelry), Jerzees Yucatan (clothing), Manufacturera Lee de México (clothing), Balmex (clothing), Grupo Bimbo (food), Keken (food), Tiendas Chapur (commerce), Hidrogenadora Yucateca (food), Grupo Bepensa (beverages), Productos de Harina (food), Ormex (medical/industrial), Grupo Wal-Mart (commerce), Grupo Donde (food), Cemex (cement), Barcel (food), Mitza (construction), Grupo Pepsico (Beverage), Coca-Cola (Beverage), Air Temp (Air condition systems products) and Seal and Metal Products (stainless steel seals). •Value of exports (Jan 08- Sept 09): 1,273.3 million of dollars. •Principal products exported (Jan 08- Sept 09): jewelry (35.3%), clothing (28.3%), machines and industrial equipment (9%), fishing (5.61%), and furniture (4.22%). •Principal country destination of exports (Jan 08- Sept 09) : United States (81.8%), Macao (3.4%), Canada (2.8%) & Caiman Islands (2.52%). (SEFOE with information from General Administration of Customs). 7 INFRAESTRUCTURE INFRASTRUCTURE AT A GLANCE Airport: Number of airports 2 (1 in Merida and 1 in Chichen Itza). Railway: 609.40 Kilometers. Road: 12,362 Kilometers. Port: •Terminals and wharfs for the embarkation of major cargo ships. •Areas for the handling of freezer containers to facilitate the traffic of perishable products. •Special equipment for handling load. •Development of logistic services and of various modes of transportation. •Cruiser operations and tourist ferries to link the Peninsula of Yucatan with the centers of the East coast of the United States, the Gulf of Mexico and the Caribbean. •Development of terminals and warehouses for containers and general load. •Terminals, installations and transportation of people in tourist activities. Source: Communication and Transportation Secretariat and Integral Port Administration from Progreso. 8 Airports The International Airport of Merida is the second of ASUR (Southeast Airports) in receiving traffic and income. It counts with: •A charging terminal •Custom office. •Custom agencies. •Bank for fiscal payments. Yucatan also has another airport smaller in size, the international airport of Kaua, located near form de archeological zone of Chichen Itza, located in the center of the state of Yucatan. International Airport of Merida International Airport of Chichen Itza Technique information of the international airport of Chichen Itza: •Localization: Kaua, Yucatan. •Runways: 10-28 => 2,800 x 45 meters. •Capacity: 3,233 passengers. •Classification: International. •Type: Tourist / Freight. Ports Progreso is the chief port of Yucatan state. It is based on a large fishing industry and it has been consolidated from the construction of the Port of height, single offshore facility consisting of a viaduct into the sea that has 6.5 km of distance, to gain depth and allow a ship of 34 feet-as a strategic hub for exporting & importing logistics. Containers loaded with goods leave Progreso towards the Caribbean and other countries nearby. 9 The costal region of the state of Yucatan limits in the East with the state of Quintana Roo and in the West with the state of Campeche. The littoral of Yucatan has an extension of 365 km and involves 13 littoral communities: Celestun, Hunucma, Progreso, Ixil, Dzernul, Telchac Puerto, Sinanche, Dzinzantun, Yobain, Dzilam de Bravo, San Felipe, Rio Lagartos and Tizimin. In the humid coasts of Yucatan there are four Natural Protected Areas (ANP), two of them are federal: Special Reserve of the Biosphere of Celestun and the Lagartos River. The two others are the State Reserve of El Palmar and the Bocas de Dzilam. For more information about the different routes, please visit the following web site: http://www.puertosyucatan.com/ne/rutas.htm 10 WHAT DOES YUCATAN OFFER Exportable Offer The following graph shows the Exports by industry from Yucatan for the period January 2008 to September 2009: The next graph illustrates the Top 10 Exported Products from Yucatan for the period January 2008 to September 2009: 11 PYMEXPORTA CENTER Centro Pymexporta Yucatan is the agency in charge of promoting and increasing exports. It belongs to the Economic Development Secretariat of the State of Yucatan and aims to develop small and mediumsized enterprises, improving opportunities in export markets. It is responsible for the registration and incorporation of local export products in order to respond efficiently to international demands. One of the services offered is to arrange business meetings, fulfilling the need to constitute a communication platform that links business initiatives to foreign buyers. Being the state organism in charge of international commerce, Centro Pymexporta Yucatan meets with governments, associations and private and public interest groups to develop relations between Yucatan and the international trade community. The State of Yucatan is an excellent location for business opportunities. Its strategic geographical position transforms it into a platform of production for the East Coast of the U.S., the Caribbean and Central America. Yucatan has access to world-class services and a modern infrastructure, along with the advantages of safety and high quality of life. With competitive processes and skilled labor force; Yucatan has become one of the most important suppliers worldwide of recognized quality products like: bee honey (Germany), habanero pepper (Japan, Korea and U.S.A.) & Mayan octopus (Japan) as well as in manufactured goods for the United States and other parts in the world. Free Services Pymexporta Center: • Trade and Investment Opportunities • Introduction to high levels of Government and Industry to help projects move forward faster. International Promotion Headquarters Phone: (+52.999) 930.37.30 ext. 29007 12 DOEY The DOEY is a Directory of the entire exportable offer in the State of Yucatan. It was created by PYMEXPORTA Center and incluids all the companies established in the State of Yucatan, that during the year 2009, have contacted the Economic development Secretariat to initiate an export project, consolidate or diversify existing exports, or that have been invited to join the group of selected enterprises because of their ongoing success as an exporting company. The Directory includes companies that are in the process of adapting to international standards. Current Exporter: A company that is already exporting to one or several international markets, interested in consolidating or diversifying its exports. It has the ability to respond to a purchase order immediately. Indirect Exporter: A company that supplies products to another one where the second is responsible for marketing them abroad or incorporation into other goods for export. Potential Exporter: A company that is well prepared to supply international markets. Even though it is neither exporting nor has exported in the past, it has the ability to respond to a purchase order almost immediately. Developing Exporter: A company in the process of becoming a successful exporter following the guidelines laid out by the Centro Pymexporta in areas of training, advice, fitness products, formation of the export price, among others. http://www.pymexporta.yucatan.gob.mx/doey 13 FOREIGN TRADE Market access obtained by the implementation of Free Trade Agreements (FTA) positions Mexico as very attractive platform for trade and investment. The network of 12 FTAs subscribed by our country offers safe and preferential access to the markets of 44 countries that concentrate more than a billion potential consumers. These Agreements provide a long term legal framework and certainty for exporters, investors & consumers. Mexico’s strategic geographical location, between the Atlantic and the Pacific Oceans, and connecting north and South America, makes of it an ideal hub for world-wide production and trade. Mexico’s strategy is to continue expanding its network of FTA’s to diversify its export markets and to attract Mexican and foreign enterprises to invest and reap the benefits of joint production in a strategic location. 14 YUCATAN LOGISTICS Yucatan Logistics is a web site designed to provide all the information concerning with logistic processes of importing and exporting products from the State of Yucatan. It contains a directory with information from customs agencies, packages delivery companies, air services, shipping services, ground services, messaging and logistics consulting. http://www.yucatanlogistics.com INTERESTING SITES Central Bank of Mexico: www.banxico.gob.mx DOEY: www.pymexporta.yucatan.gob.mx/doey Economic Development Secretariat of Yucatan State (SEFOE): www.sefoe.yucatan.gob.mx Horizonte Yucatan. Merchant society of apparel industry: www.horizonteyucatan.com Mexican Government: www.gob.mx Ministry of Economy: www.economia.gob.mx National Bank of Foreign Trade: www.bancomext.gob.mx National Institute of Statistics, Geography and Informatics: www.inegi.gob.mx Progreso’s Port Administration: www.puertosyucatan.com/ne/rutas.htm Public Credit Office: www.shcp.gob.mx Pulso Económico. Quarterly publication of SEFOE, which contains economic information: www.sefoe.yucatan.gob.mx/esp/publicaciones/publicaciones.php Pymexporta Center: www.pymexporta.yucatan.gob.mx/ Yucatan Government: www.yucatan.gob.mx Yucatan Logistics: www.yucatanlogistics.com 15
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