What do German investors see in Mexico?
Viktor Elbling, German ambassador to Mexico, believes that German companies will keep their investments in the country, although he admits there are concerns about Donald Trump’s trade policy.
Mexico is already Germany’s first trading partner in Latin America. Annually, both countries register trade worth 18 billion US dollars.
Out of the 25 companies in the DAX – the benchmark stock index of the Frankfurt Stock Exchange – 24 operate in Mexico.
According to Viktor Elbling, the German ambassador to Mexico, it is not only the issue of labour costs, which are actually lower compared to the United States, but also Mexico´s free trade agreements with 46 countries, which reach 1 billion people, makes it a highly attractive investment alternative for German companies.
“From Mexico you can export without tariffs and without quotas to 46 countries worldwide. Since Mexico is a global production platform, it stands out as the most important Latinamerican country for German companies”, Elbling said.
He believes that when German firms decide to make an investment, they don´t just do it for three or four years, they are usually long-term investors, with a strategic vision that goes beyond day-to-day politics.
As far as Mexican businesses succeeding in Germany are concerned, Elbling considers that the entry barrier in terms of quality is the most important obstacle to overcome.
Given Mexico´s high quality products, Elbling sees many opportunities for Mexican commerce there, especially in the agricultural sector. Mexico´s formidable range of organic products could penetrate the European market much more deeply and this is just a small example of what is possible.
“As they say: If you can make it in Germany, you can make it anywhere in Europe.” Elbling concluded.
By Elliot Bullman for Mexico News Network
Now, his chauffeur drives him anywhere he needs to go in a Mercedes Benz.