CONCANACO-SERVYTUR Opens First Delegation in EuropeBy Alessa Flores | Fri, 09/18/2020 - 13:19
The National Chambers of Commerce, Service and Tourism Confederation (CONCANACO SERVYTUR) today announced through a special release that it will open its first European delegation in Spain "to provide Mexican companies wishing to establish themselves in the country and Spaniards wishing to enter Mexico with administrative, legislative, promotion, investment, internationalization, and communication coverage." This is not the first international delegation, as CONCANACO-SERVYTUR already has a representation in China.
CONCANACO SERVYTUR is an institution founded in 1917 in Mexico in charge of representing, promoting and defending at a national and international level trade, services and tourism activities, grouping 255 confederated industrial chambers. The confederation’s chambers and their members represent 54 percent of the National GDP and 60 percent of the formal employment in Mexico.
José Manuel López Campos, President of CONCANACO-SERVYTUR, explained in the official statement that "the Chamber's business initiative will allow Mexican products to reach a market of more than 500 million inhabitants. Also, the European headquarters will allow the internationalization of Mexican companies, acting as a platform for exports of SMEs.”
Since 2018 and despite the COVID-19 pandemic, Spanish foreign direct investment (FDI) has remained at US$5.511 billion according to the Spanish Chamber of Commerce (CAMESCOM). This investment reached Mexico City, State of Mexico, Guanajuato, Queretaro, San Luis Potosi, Aguascalientes, Jalisco, Michoacan, Quintana Roo, Campeche, Yucatan and Nuevo Leon. According to data from the Ministry of Economy, Spain represents 12 percent of the total investment received in the last 20 years in Mexico, with nearly US$71.5 billion. In addition, according to the CAMESCOM, Spanish investment grew 3 percent in 1H20 compared to 2019.
Given the importance of the commercial relation between Mexico and Spain, it is clear that having a representation abroad from CONCANACO-SERVYTUR can be of great help. International trade of any kind can be complex, especially if companies do not have the right knowledge and orientation. Furthermore, all international commercial transactions present some type of risk, according to Comercio y Aduanas, from the handling of currencies, the terms of exchange, customs, controls and national licenses and forms of payment to the possibility of being victim of fraud. Therefore, one of the benefits that Mexican and Spanish companies will receive will be greater administrative, legal and commercial certainty when participating in commercial exchanges.
On the other hand, this initiative can help more Mexican SMEs to get involved in internationalization. According to INEGI, today there are more than 4 million MSMEs. These represent 99.8 percent of the business fabric in Mexico, contribute 42 percent of the GDP and 78 percent of the employment in the country according to INEGI. However, only 1 percent participate in the international market. Having representation in both Mexico and Spain can be a solid platform for companies, especially SMEs, to successfully participate in other global market to boost Mexico’s socio-economic development.