Mexico inching into Asia via Thailand investment

Mexico is looking to use Thailand as a gateway to Asia and forge closer ties in food, bioeconomy, automotive, medical and pharmaceuticals through investment in the Eastern Economic Corridor (EEC).

According to Jaime Virgilio Nualart Sanchez, Mexico’s ambassador to Thailand, Asia’s economic growth is rising and Mexico aims to seek further collaboration with Thailand.

Mexico is also interested in the EEC, and the country has already established a consulate in Rayong, one of the EEC provinces.

Mexico aims to create a supply chain between Japan’s automotive industry and Mexican auto companies, said Mr Nualart, who yesterday met Prime Minister’s Office Minister Kobsak Pootrakool.

“I expect the economic collaboration will see more progress,” Mr Nualart said, noting that several Thai firms have already invested in Mexico, including Indorama Ventures Plc and PTT Exploration and Production Plc, which won an oilfield concession in Veracruz in January.

Mr Kobsak said Thailand likewise aims to use Mexico as a gateway to Latin America. Mexico is a member of the Pacific Alliance, a Latin American trade bloc formed by Chile, Colombia, Mexico and Peru, all of which border the Pacific Ocean.

The Pacific Alliance is an initiative of regional integration launched in 2011.

The bloc’s objectives are to build a participatory and consensual area of deep integration to move progressively towards the free movement of goods, services, resources and people; drive further growth, development and competitiveness of the economies of its members, focused on achieving greater well-being, overcoming socioeconomic inequality and promoting the social inclusion of its inhabitants; and become a platform of political articulation, economic and commercial integration and projection to the world, with an emphasis on the Asia-Pacific region.

Mr Kobsak said Thailand also aims to seek Mexico’s support in helping Thailand join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a newly formed bloc of 11 Pacific Rim nations that excludes the US.

Eleven Pacific Rim countries signed the CPTPP on March 8, which was revised after the US withdrew from the previous TPP deal in January 2017.

The signatories are Singapore, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Vietnam.

According to Mr Kobsak, Mexico’s investment in Thailand remains relatively low. Companies with a Mexican interest include Metalsa Thailand Co, a maker of truck parts; Kid Edutainment Holding Thailand Co, a learning centre for children; Cosmocel Thailand Ltd, a fertiliser vendor; Hyperbaric Services Thailand Co, which sells diving equipment; and Cemex Thailand Co, a cement maker.

Two-way trade between Thailand and Mexico totalled US$3.58 billion in 2017, up 5% from 2016. Thai exports to Mexico represented $2.92 billion, up 5.6% from 2016, and imports from Mexico were worth $598.38 million, up 2% from 2016.

Thailand enjoyed a $2.38-billion trade surplus with Mexico.

Exports to Mexico mostly consisted of automotive and parts, computers and components, and rubber products, while imports from Mexico were electric machinery and components, auto parts, machinery and components, science and medical equipment, and metal products.

Mexican visitors to Thailand totalled 27,883 in 2017, up from 23,845 in 2016, with the most-visited destinations being Phuket, Krabi and Phangnga.