Mexico has a free trade agreement with the European Free Trade Association, which entered into force in 2001. As such, it forms part of the Agreement on the European Economic Area. In addition, Mexico has important agreements with Norway, three of which are: The Convention for the Establishment of a Joint Intergovernmental Commission for Economic Cooperation, the Agreement for the Avoidance of Double Taxation and the Agreement on Agriculture.
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 in Mexico City.
Exhibit 1 summarizes the Trade Balance between Mexico and Norway. It shows that commerce between the two countries reached its maximum level in the year 2008. This bilateral commerce has experienced many up and downs, mostly reflected by the global recession in the year 2009.
Several important factors in the trade balance between Mexico and Norway are revealing. Take, for instance, the fact that during the 13 year time span from January 1999 to December 2013, total exports from Mexico to Norway rose from US$10.47 million to US$34.5 million (+228%). And at the same time, imports from Norway to Mexico also showed a dramatic 253% growth.
Total commerce between the two countries and reciprocal action brought in US$231.49 million during 2013 in trade between the two partners and has shown important improvements. This has been especially true of the period since 2006. This was when, for the first time, that the total commerce “stats” were available identifying the US$300 million. In fact, the period 1999 to 2013 represents a 249% growth rate in total commerce between the two nations. And another interesting detail is that in 2013 there was just a slight decrease in commerce (US$231.49 million) in comparison with (US$231.82 million) in 2012.
Norway represents the second largest commercial partner with Mexico among all the members of the European Free Trade Association. In fact, Norway represents 8.6% of the total commerce between Mexico and the European Free Trade Association.
Exhibit 2 shows Norwegian Investment in Mexico. Norway is the second largest investor in Mexico among the European Free Trade Association members with over 1.2% of the accumulated total. During the period from January 2000 through March 2014, companies with capital from Norway invested US$44.1 million in Mexico.
There are 69 companies with Norwegian investment in Mexico, according to data from the Ministry of Economy. The main sectors with private Norwegian capital in Mexico are services, manufacture and mining.
The main Norwegian companies investing in Mexico are: Det Norske Veritas (ship classification); Wallenius Wilhelmsen Logistics S de RL de CV (logistics services and global transportation for the automotive sector); Kvaerner of Mexico, SA de C.V. (oil sector); Nera of Mexico (telecommunications); Mexico Statoil AS (Oil Company); and Scandinavian Clean Water Equipment, S.A. de C.V. (purified water).
Other companies are Bergesen Worldwide México, S.A. de C.V. (Fleet services for the oil industry); Deep Ocean S. de R.L. de C.V. (Integral supplier of services and technologies for the maritime industry under the ocean); Drilltek, S.A de C.V (Oil industry); EMGS Sea Bed Logging S.A. de C.V (Drilling for oil and gas) and GB Mobile (Telecommunications).
SAPA Group (Design and fabrication of aluminum products); INTSOK (Oil Industry); Jahnsen Business Consulting & Corporate SA de CV (Energy); Kongsberg Maritime México S.A. de C.V. (Maritime solutions) and PGS Mexicana, S.A de C.V. (Solutions for Hotels) also are established in Mexico.
GEA Process Engineering de México S.A. de C.V is a supplier of spray dryers, freeze, fluidized beds, agglomerates, evaporators, distillation plants, packaging systems powders and liquids, homogenizer, plate heat exchangers, pumps and sanitary valves and also has important presence in Mexico.
Det Norske Veritas Business Assurance is a world leading certification services and has important presence in Mexico (Ship classification). DNV ensures the performance of their products, processes and organizations through certification services, evaluation and training, investing in research and development.
Drilltek, S.A de C.V is a global provider offering services based on conventional and special core analysis, Surface Logging Systems, drill monitoring and innovative technologies in the provision and processing of geological and petroleum engineering data. GEA Processs Engineering with over 50 years of experience in Mexico, specializes in the development, design and engineering of processing equipment for the manufacture of liquid, powder, granules or agglomerates of chemical, food, beverage , beer, dairy, biotechnology and pharmaceutical among others.
Jahnsen & Corporate Business Consulting SA de CV is currently representing several Norwegian companies in the energy sector. Petroleum Geo-Services (PGS) offers a broad range of products including seismic and electromagnetic services, data acquisition, processing, reservoir analysis/interpretation and multi-client library data helping oil companies to find oil and gas reserves.
The oil and gas sector is an area that has great expectations for further Norwegian investment. The Norwegians are looking forward to necessary legal reforms in Mexico, especially ones that will allow for the participation of foreign companies in oil exploitation on Mexican territory.