On Wednesday, June 12th Global Chamber® presented its first virtual 'globinar' event NOT in English.
The globinar was entirely in Spanish! It was organized by Global Chamber® chapters in Peru (Lima) and Mexico (Guanajuato, Querétaro and Hermosillo).
The purpose was to establish a discussion so that companies from both countries could learn about existing business opportunities in and between the two countries. Thank you all for participating!
Our distinguished panel:
- Ms. María Teresa Villena Ramírez - Director of the Commercial Office of the Government of Peru in Mexico
- Mr. Juan Manuel Arjona Ortíz - First Secretary of ProMexico in Lima, Peru
- Lic. Rodrigo Soto Guerrero - Commercial Associate of My Insurance and Surety Agent
- Mr. Israel Sanguineti - General Director of Soluzioni International
- C.P. Oscar Reyes Rivera - Tax and Corporate Planning at Kastell Consulting
- Alejandra Aguilar Cano - Commercial Manager of S & M Foods SRL
Despite cultural alignment and geographical proximity, Mexico and Peru are today NOT large commercial partners, and their bilateral trade today is relatively insignificant compared to the commercial exchange each has with U.S., Europe, or China.
The trade balance between Mexico and Peru has favored Mexico in recent years, with a surplus of US$1.26 billion. Contributing to Mexico's surplus is the fact that Peruvian exports to Mexico have fallen from their maximum level in 2014.
In the discussion we learned some of the products being traded between these two countries.
Top products that Mexico exports to Peru:
• Televisions • Road tractors for semi-trailers • Assembled vehicles • Digital process units • Shampoo
Top products that Peru exports to Mexico:
• Natural gas • Fuels • Lead minerals • Copper minerals • Tires • Fresh grapes • Paprika • Drilling machines
What opportunities are there for these two markets? Experts mentioned these sectors as top targets:
- Mining and hydrocarbons
- Agro-business including processed foods
- Telecommunications and infrastructure
Peru and Mexico have a Free Trade Agreement that provides tariff advantages. Oscar Reyes from Kastell Consulting mentioned that there is a treaty in Mexico to avoid double taxation, favoring trade growth.
We had the opportunity to listen to Alejandra Aguilar from S&M Foods, a company that exports paprika and quinoa to Mexico from Peru. According to Alejandra, the opportunities in the Mexican market are extensive, and she indicated that the important thing is to train exporters about the proper processes to follow.
With S&M Foods, they wait to earn a spot within the annual quota granted by the Mexican government for the importation of specific products. In addition, in the case of quinoa and some other agricultural products, there are rules of origin requirements that must be met. Her company has had a good experience with exporting, and so she invites other Peruvian companies to explore the Mexican market.
The main message of this event was to highlight the opportunity and stress the need to educate exporters on how to proceed. It is important to get educated about both countries because there is a lack of knowledge about what can be done between both markets.
As Juan Manuel Arjona indicated, "Mexicans do not know Peru and Peruvians do not know Mexico."
Although there is much talk of close relationships among Latin American countries, the truth is that there could be greater participation among and between these countries.In the face of the tariff warfare that exists today, it is important to explore and find new partners, and to strengthen existing relationships.
You can watch the full event in Spanish HERE.
To learn more about business opportunities, contact us at firstname.lastname@example.org
Cesar Trabanco - Global Chamber®