Guangdong Special: Mexico in the spotlight as co-host of SME fair

As a co-host of the annual China International Small and Medium Enterprises Fair, Mexico hopes to boost trade with China by exploring more opportunities for SMEs, said a senior official.

David Najera, Mexico's consul general in Guangzhou, said more cooperation between Mexican SMEs and their Chinese counterparts will play a bigger role in balancing bilateral trade.

"We hope Mexican companies will find more trade and investment opportunities with Chinese counterparts in the fair because we believe that trade between China and Mexico will rely more on SMEs from both sides," Najera said.

Najera said goods are often produced by large companies in Mexico. Exports are shipped to the United States and Canada due to geographic proximity.

Mexico, the United States and Canada have formed North American Free Trade Zone, with the US already the largest trade partner with Mexico, said Najera.

"People are asking why we should develop stronger trade ties with China by participating in such a large fair - the answer is we hope to develop closer links between SMEs," Najera said.

According to the Ministry of Commerce, trade between Mexico and China increased 8.2 percent to $67.79 billion in 2013, with China the second-largest export destination for Mexico.

Mexico's imports from China increased 7.7 percent to $61.32 billion in the year while its exports to China increased by 13 percent to $6.47 billion, according to the MOC.

Mexico's exports to China are mainly minerals, transportation equipment and mechanical and electrical products.

"Participation in the China fair will help more companies, especially SMEs of Mexico, to expand their export destinations," said Najera.

In an interview with China Daily, Najera said China and Mexico need to create a healthy trade and investment ties to balance trade.

"We need to find more opportunities in China and look for potential Chinese partners to develop closer ties. We are coming here not only for trade deals but also for investment and cooperation opportunities with Chinese companies," he said.

According to Najera, some 1,500 Chinese companies will be organized to participate in a matchmaking event to meet Mexican counterparts during the fair.

A large delegation of government officials and business leaders will participate in the fair in Guangzhou, the capital city of Guangdong province, on Saturday.

Among the delegation are about 170 SMEs from Mexico that have yet to develop trade and investment relationships with their Chinese counterparts. "The companies are very competitive in trade, enjoying a large production and export capacity and covering various industries," Najera said.

The companies are mostly engaged in production of food, beverages, leather, footwear, medicine, machinery, wine, cigar, crafts and auto parts, according to Najera.

Chinese companies' strong production capability will help their counterparts in Mexico better increase production capacity, according to Najera.

"Some Chinese products are shipped to Mexico and then manufactured locally again before they are exported to third parties," said Najera.

A growing number of auto parts, TV sets, computers and mobile phone manufacturers now import goods from China, he said. "Companies from both sides can be good partners in the global manufacturing chain," he said.

Mexico will set up a 10,000-square-meter pavilion at the Poly International Exhibition Center during the fair, with a pyramid booth at the entrance to represent Mexico's long history and its trade with other regions.

"SMEs play a very important role in Mexico's economy and create about 80 percent of jobs. Our government encourages these young and dynamic enterprises to explore potential market in China," he said.

According to Lin Ying, deputy secretary-general of Guangdong provincial government, exhibitors from 21 countries and organizations have confirmed participation, covering an exhibition area of 100,000 square meters.

Since 2004, the fair's organizers invited a foreign country to co-host the event. This year, Mexico will send a delegation of 117 government officials from 15 states and more than 300 business people to Guangzhou, looking for trade and investment opportunities, according to the organizers.

qiuquanlin@chinadaily.com.cn