The Embassy of the Netherlands: Fostering Trade, Sustainability

Q: What are the primary objectives and focus areas of the Embassy of the Netherlands in Mexico?

A: We have four priorities, of which the economic relations are the most important. Our main priority is fostering economic diplomacy and strengthening economic relations between the Netherlands and Mexico. We support Dutch companies looking to export to or invest in Mexico. About half of our staff works in the economic section of the Embassy of the Netherlands in Mexico City and we have an office in Queretaro, the Netherlands Business Support Office (NBSO), to aid in economic promotion efforts.

Q: How does the Embassy promote and support Dutch businesses looking to establish or expand their operations in the Mexican market? 

A: We offer various support tools for Dutch businesses. First, we provide basic information and advice, especially on initial steps, while leaving detailed legal and fiscal matters to specialized institutions. Second, we focus on business development by highlighting opportunities in key sectors. Third, we organize seminars and trade missions, both bringing Dutch companies to Mexico and sending Mexican decision-makers to the Netherlands. Finally, we assist businesses facing challenges, whether in exports or operations within Mexico, by helping resolve issues with the government.

Q: How has interest in Mexico from Dutch companies evolved  over the past four years?

A: There has been an increase in interest, primarily from companies already active in Mexico that want to expand their operations. For example, Heineken is opening its eighth brewery in Yucatan, Unilever is building a large cosmetics plant in Nuevo Leon, and Trouw Nutrition is constructing its third factory in Queretaro. There are also expansions in the agricultural sector. While new greenfield investments are fewer, some Dutch SMEs are relocating production from China to Mexico to benefit from the shorter logistical distance and the USMCA.

Q: How does the USMCA benefit Dutch companies looking to nearshore their production to Mexico? 

A: The USMCA greatly facilitates trade by reducing tariff and non-tariff barriers, making the flow of goods and services easier. Mexican exports to the United States have consistently increased since NAFTA, attracting more investments and boosting the Mexican economy. Dutch companies benefit from these conditions, especially those targeting the US market. The European Union also has a free trade agreement with Mexico, which is being modernized and expected to further enhance trade between the European Union and Mexico.

Q: Which sectors or industries is the Embassy of the Netherlands in Mexico prioritizing? 

A: We have selected seven key sectors for business development. The biggest is agriculture, focusing on greenhouse technology and circular economy practices. Water management is the second largest sector. We have invested quite a lot in contacts at State level. This is beginning to pay off. Energy is another priority, shifting from oil and gas to renewables like hydrogen. We have been preparing for Mexico's future role in hydrogen by conducting studies and seminars and involving Mexican decision-makers in the World Hydrogen Summit in Rotterdam. Maritime infrastructure, including ports and airports, is also important. Other priority sectors are life sciences and health, automotive, and smart cities/mobility, which includes green building and circular economy initiatives to make cities more livable. 

Q: What measures have been taken to promote sustainability and responsible business practices among Dutch companies operating in Mexico?

A: Sustainability is a key theme and focus across all sectors. We also prioritize female empowerment as part of our diversity and inclusion agenda. To promote these values, we leverage the Dutch Sustainable Growth Coalition, formed by eight Dutch multinationals during the United Nations Climate Change Conference held in Glasgow three years ago. This coalition, which has a Mexico chapter, works to advance sustainability goals beyond government efforts. We organize seminars where companies can share best practices and collaborate on sustainability initiatives.

Q: What are the goals and expected outcomes of the recently signed Letter of Intent regarding the Binational Water Council? 

A: The Letter of Intent for the Binational Water Council, initiated by Mexico, aims to enhance cooperation between Mexican and Dutch companies, as well as between government bodies and research institutions. The goal is to share information and innovations in the water sector. The council will consolidate various initiatives and will hold its first meeting during the Aquatech event, to be held in September at Citibanamex in Mexico City. This meeting will set priorities and outline the plan for the coming year.

Q: How can Dutch and Mexican organizations collaborate to advance circular economy practices? 

A: To promote circular economy practices, we start by commissioning a market study to identify existing efforts and gaps in Mexico. In the study we will focus on the textile industry, the construction sector and circular design. The study will help us understand where Dutch companies can contribute. We then present these findings to Dutch companies and organize missions or webinars, or participate in relevant fairs to engage them.

As said, we focus on sustainable building practices, such as improving insulation to reduce energy loss and designing buildings for material recovery. The textile industry is also a key area, as old materials can be reused to create new garments. On circular design we support initiatives like What Design Can Do, which invites designers to develop innovative solutions for waste management and circular processes. Winning ideas receive support through an accelerator program in Amsterdam to further develop their business plans. 

Q: What key opportunities and challenges does the Embassy of the Netherlands see in the Mexican market for Dutch businesses and investors? 

A: Mexico presents several compelling advantages for Dutch businesses and investors. Its proximity to the United States, the largest market in the world, provides a significant strategic benefit. Mexico also has access to both the Caribbean and Pacific Oceans, facilitating valuable trade routes to the European Union, Africa, and Asia. The country also boasts a well-educated workforce and a government that is supportive of foreign investments, creating an attractive environment for business expansion.

Despite these opportunities, there are notable challenges that investors need to consider. Security remains a significant issue, with companies facing concerns related to the safety of their operations and during goods transportation. Legal security is also a critical factor; foreign investors require reliable legal protection and an independent judiciary to safeguard their interests.

Water scarcity is another challenge affecting certain regions of Mexico, which can impact operational efficiency. There is also a growing need to use clean, renewable energy. As many multinational companies increasingly focus on sustainability, enhancing Mexico’s clean energy efforts will be essential for aligning with global environmental goals.

Q: How is the Dutch government promoting diversity and inclusion within the business sector in Mexico? 

A: The embassy focuses strongly on supporting female entrepreneurs. We ensure their participation in all our events and missions. For example, we organized a mission for 40 Mexican female entrepreneurs to the Netherlands two years ago and held a workshop for women entrepreneurs in Mexico last year. Internally, we are committed to gender equality. All staff members have signed a gender pledge to foster gender equality. Additionally, when hiring staff, we strive for gender balance and actively encourage applications from the LGBTQ+ community.

Mexico's public sector is ahead of the Netherlands in terms of gender equality. While the Netherlands has not yet achieved gender parity in its cabinet or parliament, Mexico has made significant progress, with increasing numbers of women in leadership roles and governorships. Both countries have embraced foreign feminist policy principles. 

Q: What are the main goals and priorities of the Embassy of the Netherlands in Mexico, and how does it plan to achieve these objectives in the coming years? 

A: The Embassy of the Netherlands in Mexico has several key goals and priorities for the coming years. One major focus is advancing the water agenda. We have made significant progress in this area and continue to receive invitations from various Mexican states seeking our expertise. We will maintain our efforts in the water sector, building on the work we have already begun.

Agriculture is another priority, particularly with events like the Green Tech fair, which focuses on horticulture and greenhouse agriculture. We are also working on a biodiversity strategy to enhance this sector. Hydrogen is another priority; we will host a seminar on this topic at the beginning of September 2024 and continue to increase our involvement in this field.

In life sciences, we plan to facilitate a mission to the Netherlands in September for decision-makers. We also hope to engage further with the new Sheinbaum cabinet to strengthen our relationship.