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THE CHALLENGES OF FOREIGN TRADE IN MEXICO 2020.

We live day by day with news such as insecurity, the United States fighting with China, the ravages caused by pollution and overpopulation, a country like England closes the parliament for five weeks in order to finalize its exit from the European Union (BREXIT) , social problems in Iraq, Sargazo in the Caribbean, a change of government  in our country, budget cuts, labor, fiscal, educational reforms among others, and an endless number of local, regional, national and global notes that leave us with so much information to analyze and with little time to do it.

We have two paths, one is to sink into worry and not move through one or all of the aforementioned events, among others, the second way is to become aware that we are living a unique opportunity, not only worldwide, also for our country, the technology, the change in the form of trade, a new generation of young people with new and diverse needs, that traditional business forms changed, we do not have to fight with traditional industries of 50, 100, 200 years.

Today we think more than twice about establishing ourselves in a shopping center or opening an e-commerce company, we used to travel for months, we got the products, we paid them, they were produced, we saw them embark to get to the store in our country, up to this day we have stores that send retail from the country where the items are produced.

There are new areas of opportunity for new businesses, now we need companies that help us to certify ourselves to have processes, collaborators and systems that guarantee the values and ethics of our companies in anti-corruption matters, companies that help us take care of the physical and mental health of our collaborators, adapt to work at home, flexible schedules, companies that help us contribute to the care of the environment and social causes.

That said, we now have an overview to understand better the challenges of foreign trade in Mexico 2020.

We divide our reference in two: Export and Import.

Export:

Our challenges are markets more agile, demanding, evolving, without borders and in search of better cost.

We need to work in the processing industry, mainly food, as raw material we have it first hand, instead of  offering simple avocados, offer them packed in high vacuum, instead of fruits, fruit pulps, chicken meat, beef, pork, skinless , boneless, cut and pre-cooked, tomatoes packed in plastic bags such as pure and / or in pieces, we can continue with an endless number of processed products that not only have a niche market internationally, they are also in high demand at the national level and these processed elements extend their expiration, the logistics spaces are reduced and allow to move more merchandise at the same cost.

In the textile industry, maquila, fashion, retake national brands that give added value for the textile type, smart fabrics with innovative designs, that enhance our culture, that allow mobility, freshness, heat or both, adapt gadgets, among others many aggregates that allow us not to compete for the price, compete for innovation.

We apply these types of innovations to many industries in our country, such as construction materials, furniture, wood, etc.

We must also take this innovation to commercialization systems, such as the e-commerce pages and join national and international market place platforms to reach more people in less time.

Think of constant changes of our products, changes thought in lapses not greater than two years, in social, environmental, political trends, in different cultures and different ages.

We must develop products such as plastic woods that are obtained from pet bottles and be able to use them for furniture, furniture, as well as the development of other products that are obtained from waste to reuse them, as is the case with wood, metals, glass, batteries

Work in more distant markets such as Asia, Africa and Oceania, without fear of new cultures, distances or languages.

But the main challenge we have is to divide our structure in two or three parts: the first one is the primary production as it is today, the second one is the processed foods industry and the third is that it specializes in the search for new markets, that prepares companies that are legally constituted, that process the documentation required by the different buyer countries, that handle other languages, prepared with contracts, logistical, legal, fiscal, accounting, marketing, international fairs, with the tools to leverage the company through credits and master the tools that allow the collection of goods abroad to be successful.

Import:

We are at a high point of world production, entering a global crisis, automation, artificial intelligence, connectivity, internet 5G, this makes the economy against production in a very unequal point, we can observe an accelerated continuous production, but a low consumption.

Precisely this will create the opportunity to negotiate better purchase prices, but with the precaution of not creating unnecessary stock, since in our country we will have our own critical circumstances.

We have as challenges to offer new products with different qualities, prices, in addition to the globalization, migratory circumstances lead us to bring products of foreign tastes to the migrants of our country, products that generate memories, nostalgia and allow us to develop new consumer businesses.

Thinking today about a Russian caviar, flour for Colombian arepas, Italian spices, Iberian hams among others, gives us the opportunity for new consumer businesses.

By having a market contraction and generating a crisis, the need to offer products for the construction sector, technology, furniture at a better price becomes indispensable, so I return to the topic of achieving better negotiations, with better costs, different qualities and products for new markets.

The country in the last twenty years has advanced a lot in foreign trade, Free Trade Agreements, Agreements, general decrease of tariffs, requirement and import times, it is important therefore to think about the import of elements that transfer technology to us to develop other products for national and export use, processing equipment, to produce clean energy, waste processing for reuse that allow us to have new solid industries in a 10-year curve, reduce the importation of this type of products , better consumption costs in our country, and allow us to extract a new stage of export.

Sergio León
Sergio León
CEO IMPOEXPORTA

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