Mexican and German economic ties are very healthy due to the signing of bi-lateral commercial accords, as well as because of strong political and cultural connections.
In 2016, it is the goal of the Pena Nieto administration not only to forge increasingly deep and meaningful Mexican and German economic ties, but also to strengthen strategic links in the political realm.
Germany plays an important role
Germany is Mexico’s most important European economic partner, and its fifth most influential overall. A full twenty percent of Mexico’s exports go to the Western European nation. Although Germany is very important to its Latin American partner in several important realms, much still can be done to make Mexican and German economic ties more profound than they are at present.
In terms of foreign direct investment in Mexico, or FDI, Germany is fourth when it comes to capital input into the Mexican economy. From 1999 to 2015, German companies invested a total of just over eleven billion US dollars on Mexican soil. About half of this investment was directed at creating extensive Mexican and German economic ties in the area of manufacturing. Much of these dollars were dedicated to increasing the ability of German firms to produce both automobiles and trucks, and was directed mainly toward the State of Puebla’s automotive manufacturing facilities. Other significant areas of German investment in Mexico include dollars spent in the pharmaceutical sector, the manufacture of machinery, electronics, and communications equipment. Mexican and German economic ties have been strengthened by a notable amount of technology transfer in these areas.
Tourism between Germany and Mexico is also the glue that cements the two nation’s economic and cultural relationship. The number of German visitors to Mexico ranks ninth when considered on a worldwide basis. In addition to manufacturing, this movement of people does much to build lasting Mexican and German economic ties.
Gateway into the EU
Germany constitutes, for Mexico, its main and most profitable entry into the lucrative market that is the European Union. The continuance of the building of greater Mexican and German economic relations is a principal component of reducing Mexico’s commercial and economic reliance on its principal trading partner, the United States.