Denmark and Mexico started their diplomatic relations in the year 1827 with a Treaty of Friendship, Trade and Navigation and today, 185 years later, Denmark is Mexico’s largest investor among the Nordic countries.
Denmark and Mexico have executed the following bilateral treaties:
On July 19th of 1827 both countries signed a treaty which stipulated that the products from Denmark may be carried to Mexico from any part of the world without paying duties any higher than the ones charged on the same articles imported by vessels from the mostfavored nations.
An agreement concerning the reciprocal protection of works by authors, composers and artists. This agreement was signed in Mexico City on July 12th, 1954.
Also, in Mexico City in December of 1980 the Agreement on Economic Cooperation was signed.
Exhibit 1 summarizes the Trade Balance between Mexico and Denmark. It shows that commerce between the two countries reached its maximum level in 2010, with an estimated US$647 million. What really stands out is that since 2000 commerce between Mexico and Denmark has been evolving very satisfactorily following a path of continuous growth.
Several important factors in the trade balance between Mexico and Denmark are revealing. Take, for instance, the fact that during the 12 year time span from January 1999 to December 2011, total exports from Mexico to Denmark were duplicated rising from US$52.96 million to US$115.51 million (+118%). And at the same time, Mexico’s imports from Denmark also showed an impressive 250% growth.
Total commerce between the two countries and reciprocal action brought in US$558 million during 2011 in trade between the two partners. This was the second largest during the historical bilateral relationship. Total commerce between Mexico and Denmark showed important improvements, especially during the period since 2007. This was when, for the first time, the total commerce stats were available identifying the US$400 million.
In fact, the period 1999 to 2011 represents a 211% growth rate in total commerce between the two nations. But, in 2011 there was a 13% decrease in commerce (US$558.72 million) compared to 2010 (US$647.59 million).
In Exhibit 2 we can see Danish Investment in Mexico. During the period from January 2000 through June of 2010, companies with capital from Denmark invested US$1.35 billion.
This amount represents 0.5% of the total invested in Mexico during that time. According to this information Denmark is the 10th largest investor in Mexico during the span of time from January 2000 through June of 2010. And it is the seventh largest from the European Union.
Among the most important companies with Danish capital presence in Mexico are Nilfisk (NKT Holding A/S); Lego; Novo Nordisk A/S; Grundfos; A.P. Møller – Mærsk A/S and Fl Smidth & Co. A/S. Also, there are Danfoss A/S, Danisco A/S, ISS and Lundbeck. Each of them has important investments in Mexico.
The largest LEGO plant of the Danish company is located in Mexico, the manufacturer of plastic blocks to make toys just invested US$150 million in an expansion. The complex, located in Cienega de Flores, Nuevo Leon, outdoes in size and production any other plant in Denmark, the Czech Republic and Hungary. The plastics molding and injection plant is fully robotized.
Reuters reported that the port terminals arm of AP Moeller Maersk A/S plans to invest US$900 million in a new container facility at Mexico’s Port of Lazaro Cardenas. The Lazaro Cardenas Port Authority chose Maersk’s APM Terminals unit as the winner of its deepwater container terminal bid. This resulted in awarding its 32- year Greenfield site concession for the new terminal. This was recently announced by APM Terminals in a statement.