Strengthening Relationships with Existing Trade Partners

Q: Besides Canada and the US, which countries rank among the most important trade partners for Mexico?

A: Mexico is a major recipient of mining investment worldwide. According to the latest S&P Global figures on investment in nonferrous mineral exploration, our country ranked as the sixth most important destination globally with 5.8 percent of the total. We have a significant presence of Canadian and US mining companies but those from China, Japan, Australia, UK, South Korea, India and other countries also work in our territory. Our policy is to support existing investments and achieve greater diversification.

China and Australia are two key markets in the mining industry in terms of the value of their production, where there is a large mining capacity.

Q: How well-developed is Mexico’s mining relationship with China?

A: In 2013, China and Mexico relaunched their partnership, strengthening it with the signing of a mining agreement. Since then, the two countries have reached a higher level of friendship, trust and cooperation.

As a result, the contact we had with China in recent years has been fruitful in many ways. Not only have we consolidated a close relationship with the authorities of that country but we have formalized it through several instruments. During the visit we made in September 2016, the renewal of the Memorandum of Understanding (MoU) on Mining was signed and agreements have also been established between the geological services of both countries.

As Mexico is China’s largest trading partner in Latin America, today the mining sector has huge potential to become a crucial activity. As of the end of 2013, nine Chinese companies were operating in our country and at the end of 2016 we had 13. Even though the number is still limited, the work that has been done has helped to arouse a greater interest among Chinese companies to invest in Mexican mining.

Q: How crucial is Mexico’s relationship with Canada and what role does mining play?

A: The Mexico-Canada relationship is strategic and deep. Canada is our third-largest trading partner and fourthlargest investor in our territory. Mexico’s relations with Canada are, for geographical, economic and demographic reasons, one of the priorities in our international work. From 1994 onward, NAFTA stimulated bilateral relations, governmental interlocution and cultural ties in both the business environment and academia.

In 2004 the Canada-Mexico Partnership (CMP) was created by the leaders of both nations as part of a bilateral initiative to promote public and private cooperation between the two countries. In November 2016, the Mining Group was created within the CMP, with the objective of strengthening cooperation on issues such as financing of the mining sector, indigenous consultation, sustainable development, clean energy, exploration and technological development.

Q: What progress has been made by the Mining Group?

A: One of the first significant results generated by the Mining Group is the formalization of a MoU on cooperation for the sustainable development of mineral resources. The MOU was signed by the Mexican Minister of Economy and the Canadian Minister of Natural Resources, James Carr, on Feb. 1, 2017.

Mining is a particularly important industry in terms of economic and trade links between Canada and Mexico. At the end of 2016, 275 mining companies with foreign capital participation were operating in Mexican territory, and 176 of them - around 64 percent - are Canadian. These Canadian companies operate more than 600 mining projects in different regions of Mexico. We are committed to stimulating investment and promoting trade to consolidate the mining sector as a fundamental part of the growth of our economy and the development of the population.