Economic and Commercial Matters
The earliest records of commercial exchange between Sweden and Mexico date back to 1904, when the Swedish company Ericsson first established a branch on Mexican territory. By June 2009 there were 189 Mexican business associations which included Swedes and Swedish enterprises among their members as social capital within Mexico. The Swedish Council for Foreign Trade (Exportrådet) has been represented in Mexico since 1970, and in 2003 it opened offices in Mexico City. As for Mexico, in October, 2008 the regional offices of ProMéxico were established in Stockholm as a base for all of the Nordic and Baltic countries.
On October 3rd, 2000, the governments of Mexico and Sweden signed the Agreement in Stockholm for the Promotion and Reciprocal Protection of Investments. This accord was reached in order to strengthen and further economic cooperation between Sweden and Mexico, as well as to ensure the fairness of trading conditions for investment between the nations.
Economic relations between Mexico and Sweden have been close and productive, although they haven't yet been able to develop to their fullest potential. Sweden has traditionally depended on international trade for goods, services, and technology. As such, it has developed many cutting- edge, globally successful companies, many of which have found an attractive market in Mexico, as well as a profitable environment in which to expand.
Bilateral commerce between the two states has been characterised by mutual interests as well as by a commitment to achieving its full potential for development. Nevertheless, there is still a great deal of unfamiliarity regarding the Swedish market in Mexico, and the commercial balance has traditionally leant in favour of our nation. In any case, Mexico has kept on reinforcing its platform as an exporter in order to broaden its geographic reach in international sales. In order to achieve this, Mexican enterprise has focused on five strategies for its agenda: 1) Optimization of the existing range of commercial accords; 2) Negotiation of new trade accords; 3) Convergence of existing accords; 4) Bolstering the multilateral system of commerce; and 5) Reinforcing jurisdictional protection of Mexico's economic interests.
Commercial Relations Between Mexico and Sweden
Large Swedish companies which have found a market in Mexico are the main importers of Swedish components, parts, and machinery. The influx of Swedish investment within our country has been constant. Over recent years there have been several important commercial transactions which favour a continued Swedish economic presence in Mexico. One example of this has been the infrastructural investment in our country by Svenska Cellulosa Aktiebolaget (SCA). In July 2010, the company bought the diaper production division of Copamex, whose market share covers both Mexico and Central America; and whose operation costs bill yearly at approximately U.S. $50 million. On February 15, 2011, a second production plant, in Sahagún City, was inaugurated.
Also in 2010, Ericsson announced the expansion of its operations in Mexico through the establishment of a Global Service Centre for the American Continent. The Ericsson centre will, by 2015, have tripled its market capacity, in addition to having developed a larger systems technology sector.
Some fields which have resulted attractive to foreign investment by Sweden include telecommunications and electronics, biotechnology and pharmaceuticals, services (restaurants and hotels), the automotive industry (transport and communications), chemicals, machinery and equipment, paper, and energy.
Moreover, once the Free Trade Agreement between the European Union and Mexico (FTA) came into effect, trade between Mexico and Sweden has increased 45.2%, from 721 million dollars in 1999 to 1.235 billion dollars in 2011.
Mexican exports had a decrease of 19.5%, from 108 million dollars in 2010 to 87 million dollars in 2011. At the same time, however, Mexican imports grew by 22%, from 939 million dollars in 2010 to 1.148 billion dollars in 2011. During this year, Sweden stood in the Mexican economy as its ninth largest EU trading partner.
In each sector, Mexico's manufacturing exports have increased, at present being made up in 72.8% in metals, minerals, auto parts, and electronics. A myriad of agricultural products, which nevertheless comprise only 2% of total exports, now includes products such as lemon, avocado, various types of chili, coffee, and meat.
The main Swedish companies which have operations in Mexico are: Grupo ABB Mexico (machinery and and energy sector), ASSAB Associated Swedish Steels (steel), AGA (chemicals), Alfa Laval (energy), AstraZeneca (pharmaceutical), Atlas Copco (mining equipment), Electrolux (appliances), Hiab (construction), LM Ericsson (telecommunications), Mölnicke Tissue (Hygiene), Sandvik (industrial construction), Scala Sverige (industrial), Scania (buses), SKF Svenska (automotive), Svedala Industri (mining and construction), Swedish Match (tobacco industry), Tetra Pak (packaging), Volvo (automotive), SCA Hygiene Products (pharmaceutical chemistry), and Th Brunius (containers and packaging).
Links to Mexican Financial Institutions
Government Institutions for Banking and Finance