November 26, 2020

Spanish Chamber of Commerce sees “potential” in Mexican agricultural sector

The president of the Spanish Chamber of Commerce (Camescom) in Mexico, Antonio Basagoiti, said Tuesday that “there is potential to invest in the Mexican agricultural sector.”

“There are many states in the Republic that have a lot of potential in growth in export of agricultural products. And I think that Spanish companies can provide technology, experience and knowledge of efficiency in the use of resources such as water,” Basagoiti said in statements to Efe .

The president of Camescom highlighted the opportunity that represents the population of 129 million people and “the potential market in North America, which is a perfect consumer of Mexican agricultural products.”

In that sense, Basagoiti valued the new trade agreement between the United States, Canada and Mexico (T-MEC) as a “positive agreement” and stressed that Spanish capital companies “located in Mexico and paying taxes” in that country may be eligible to the agreement as a gateway to that commercial area.

“I would also emphasize today the approval as soon as possible of the treaty of the European Union, which together with others will undoubtedly boost trade between the two continents and will mean that there are more opportunities for companies,” he also stressed .

As for the difficulties to enter the Mexican market, the president of the agency said that they are “those of any country”, that is, to know issues such as legislation and social peculiarities.

However, Basagoiti recalled that “Spanish investments have been arriving in Mexico for 130 years in different political, social and economic scenarios and many of them have succeeded,” as the data show.

During the first three quarters of 2019, Spanish investment in Mexico was 4,026 million dollars, 20% more than the previous year, and companies in that country contributed more than 15% of direct foreign investment in Mexican territory.

The ICEX, a Spanish public business entity specialized in exports and investments, wrote a report last year highlighting the growth of the Mexican agricultural sector.

According to this document, said segment grew in Mexico from 2012 to 2017 by 17.6% in terms of value, while exports rose 42.9% in the same period.

ICEX estimates, focused on Spanish businessmen willing to invest, estimate that agri-food and fisheries employ 9.1 million people in the Mexican Republic.

In addition to the “privileged geostrategic situation and the degree of commercial opening,” the Spanish agency’s report emphasizes the contribution of primary activities to Mexico’s gross domestic product (GDP), which records an annual growth of 3%.


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