México and the United Arab Emirates

Actualizado: feb 23


Among the main exports of Mexico are automobiles, vehicle parts, computers, and delivery trucks. Mexico exported $ 441 billion dollars around the world in 2018 76% of its exports went to the United States, a truly impressive data that even caused the disgust of president Trump. Just .074% of the México’s exports went to the United Arab Emirates.

Mexico is a country that exports and imports a lot of products; refined petroleum, vehicle and automobile parts, are just some that we could mention, leaving the trade balance in positive by a small percentage, and other times neutral or negative. The country is not managing to export its products to their maximum capacity.

It is known that Mexico exports a lot of primary products, when developed countries prefer that most of their exported products have gone through a process of transformation or have some type of added value, in order to double or triple the price and obtain a greater benefit from that product.


In 2018, just over 4.1 million MyPyMes were registered in Mexico, classified in the manufacturing, commerce and non-financial private services sectors. The fact that it is not possible to export at maximum capacity may be due to different factors; however, an attempt is being made to solve a problem that the country is facing which is informality in jobs and lack of institutionalization.

Before wanting to export, companies must be institutionalized and with the support of the government it could be possible to finance these projects to increase production, process permits and to find the necessary mentoring to understand the export process and discover that it is not impossible to achieve that the products of a company go to another country. Mexico could focus on exporting products to countries that do not have the same climatic conditions where they can grow fruits or produce the same products as in Mexico, such as avocados, tequila, mango, guava, among many other products.


A country that imports up to 80% of its food needs, one of the highest GDP per capita in the world, had a percentage growth between 2000 and 2007 of 9% becomes automatically an ideal export market. We are talking about the United Arab Emirates. In 2018 they imported up to $ 232 billion dollars, among their most common allies are China, India, the United States of America, the United Kingdom and Germany.



The United Arab Emirates, a federation made up of seven emirates: Abu Dhabi (capital), Dubai, Sharjah, Ajman, Umm al-Quwain, Ras Al-Khaimah and Fujairah; with a total extension of 83,600 km (4.25% of the Mexican territory), where more than 200 nationalities coexist. 90% of the territory in the UAE is desert and there is a big problem of water shortage causing agriculture to be difficult. Currently there is a policy of developing greenhouses to cover a part of the local consumption of vegetables, but it is still a sector highly dependent on the outside. Its natural oil and gas resources stand out as an important part of the country's commercial engine.


The majority of products imported in 2018 from México to the UAE were cars, vehicle

parts, machinery such as telephones, microphones, headphones, air conditioners,

among others. They imported a total of $ 18.4 million dollars in hard liquor, beer, baked

goods, among others, and finally for vegetable products they imported products with a

value of $ 20.4 million dollars in forage crops, tropical fruits, dried legumes and other oily seeds.


UAE has free zones that offer 100% of titularity of businesses with foreign entrepreneurs, and zero fiscal taxes this is an important factor for international operations and international presence in the Emirates.


Different bilateral cooperation agreements already exist between Mexico and the UAE, among them we can mention the BIT, the Memorandum of Understanding on Clean Energy and the Energy Issues Related to climate change and another for the exchange of information and best practices between PEMEX and the Abu Dhabi National Oil Company. As we can see, these agreements focus on issues related to oil, but Mexico can focus on new products to export. There is no Free Trade Agreement between these countries but it is evident that UAE is open to negotiate, to have an open commercial policies with zero corporate taxes (except for hydrocarbons and the financial sector) and a very reduced import tariff (only 5%), also seeking to be the main commercial and financial platform in the region.


Bibliography

Centro de Comercio Internacional. (28 de octubre de 2020). Trademap.org. Obteined from Estadísticas del comercio para el desarrollo internacional de las empresas Datos comerciales mensuales, trimestrales y anuales. Valores de importación y exportación, volumenes, tasas de crecimiento, cuotas de mercado, etc. https://www.trademap.org/Index.aspx

Datawheel. (28 de octubre de 2020). oec.world. Obteined from What does United Arab Emirates import from Mexico? (2018): https://oec.world/en/visualize/tree_map/hs92/import/are/mex/show/2018/

Oficina de Promoción de Negocios en Dubai. (2013). Análisis del sector agroalimentario en Emiratos Árabes Unidos. Andalucía: EXTENDA EAU.

"México" Julia Máxima Uriarte. for: Caracteristicas.co. last edition: 10 de marzo de 2020. from: https://www.caracteristicas.co/mexico/ (28 de octubre de 2020)


https://www.trademap.org/Product_SelProductCountry_Graph.aspx



#SMR #ComercioExterior #Business #Trade #Mexico #UnitedArabEmirates #internationaltrade #export #import #country

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