Mexico and Norway share the fact that both Countries are two of the largest petroleum producers in the World. Mexico and Norway established diplomatic relations in 1922. At the present time Mexico maintains its relations with Norway from its Embassy in Denmark and Norway has an Embassy at the Mexico City.
Norway is the second largest investor among the Countries of the European Free Trade Association. Among the diverse agreements signed between Mexico and Norway are:
A Cultural Agreement between Mexico and Norway; it was signed in Oslo on November 21st, 1980.
An agreement between Mexico and Norway to avoid the double imposition and prevent tax evasion on income and capital tax terms; this was signed in Oslo on March 23rd, 1995.
An agriculture agreement between Mexico and Norway; it was signed in Mexico City on November 27th, 2000.
A Free Trade Agreement between Mexico and the EFTA signed on November 27th, 2000.
Exhibit 1 shows the Trade Balance between Mexico and Norway. It shows that commerce between the two countries reached its maximum level in 2006. What stands out is that since the year 2000 commerce between Mexico and Norway has been evolving in a very satisfactory way, with the exception of last year (2009). This can be explained because of the global recession.
Several important factors in the trade balance between Mexico and Norway are revealing. Take, for instance, the fact that during the 10 year span from January 1999 to December 2009, total exports from Mexico to Norway rose 210%. But, imports from Norway to Mexico also showed an impressive 182% growth rate during the same period.
Total commerce in trade between the two partners and reciprocal action brought in US$203 million during 2009. The total commerce between Mexico and Norway has shown important improvement. In fact, the 1999- 2009 period represents a 188% growth rate in total commerce between the two countries. But for 2007 (US$302.9 million) the first step back was taken compared to 2006 (US$318.6 million) in commerce. The largest step back was the year 2009 (US$203 million) compared with 2008 representing (US$311.4 million) in bilateral trade.
In 2008 the main products imported by Mexico from Norway included petroleum, gas and other gaseous hydrocarbons (US$104.6 million). There were also oils and oils obtained from bituminous minerals (US$40.1 million).
As for nitrogen fertilizers and minerals the figure was (US$26.1 million). And for fish there was (US$20.4 million) among a number others impressive figures.
Exhibit 2 shows Norwegian Investment in Mexico. During the period from January, 1999, through December, 2009, companies with capital from Norway invested US$79.9 million.
By December of 2009 Mexico had 46 recorded companies with registered Norwegian capital. The companies receiving Norwegian capital were mainly dedicated to diverse services (39%).
Next in line comes commerce with (24%). Next we have the manufacturing industry registering (16%) as shown in Exhibit 3.
Norway is an important major investor in Mexico. Norway’s top investors include Det Norske Veritas in shipping. Add to the list Hydro Agri Mexico S.A. de C.V. with a focus on fertilizers and the petroleum sector.
Next comes Kvaerner de Mexico, S.A. of C.V. working in the petroleum sector. Another important player is Nera de Mexico in telecommunications, and there is Statoil Mexico AS which is an Oil Company. And finally, we have Vingsafe Elcard which manufactures electronic locks for hotels.
The hydrocarbons sector is an area that has great expectations for further Norwegian investment. The Norwegians are looking forward to necessary legal reform in Mexico, especially one that will allow for the participation of foreign companies in oil exploitation on Mexican territory.