Russia on Mexico

When world politics are discussed in a context of Russian- Mexican relations the focus of attention is usually on themes related to the enhancement of the role of the UN in the maintenance of global peace, international security and stability, and ways the Organization and its Security Council can be reformed. Both Foreign Ministries regularly exchange views on major world trends, including through the prism of emerging global challenges and threats.

Both Countries devote a lot of attention to ways of building up and diversifying Russian-Mexican trade-and-economic ties and intensify the collaborative effort in science and new technologies.

Many Russian scientists are working in Mexico on a contract basis and a number of joint research projects are presently being carried out and Mexican specialists are currently being trained in Russian universities and colleges.

Both sides presume that at this stage the main efforts on the part of state and commercial structures alike should be directed toward solving the problems hindering bilateral cooperation, including those in the energy, transport, investment and tourism fields.

Exhibit 1 summarizes the Trade Balance between Mexico and Russia. It shows that commerce between the two countries reached its maximum level in the year 2010 (US$1.092 billion). What really stands out is that since 2000 commerce between Mexico and Russia has been evolving very satisfactorily following a path of continuous growth, with the exception of the year 2009.

Several important factors in the trade balance between Mexico and Russia are revealing. Take, for instance, the fact that during the 11 year time span from January 1999 to December 2010, total exports from Mexico to Russia rose from US$5.44 million to US$237.40 million. And at the same time exports from Russia to Mexico also showed an impressive 995% growth (US$78 million at 1999 and US$854 million in 2010).

Total commerce between Mexico and Russia showed important improvements, especially during the period since 2004. This was when, for the first time, the total commerce stats were available identifying the US$400 million. In fact, the period 1999 to 2010 represents a 1,207% growth rate in total commerce between the two nations. And, in 2010 there was a 114% increase in commerce (US$1.092 billion) compared with (US$508 million) in 2009.

Exhibit 2 shows Russian Investment in Mexico. During the period from January 2000 through June of 2010, companies with capital from Russia invested US$1.2 million. According to this information, Russia hasn’t been a key investor in Mexico during the period January 2000 through June of 2010.

Lately, trade and economic relations between Russia and Mexico has developed on the basis of growth in the Russian economy, as well as in Mexico. In comparison in 2006 the Russian export structure has changed. This factor impacted on decreases in volume. In 2007 gasoline, diesel fuel and helicopters were not being supplied to Mexico. These positions in monetary terms amounted to US$105.4 million or 19.8% of the total volume of the Russian export.

The key elements of Russian export to Mexico are chemical products, fertilizers and caoutchouc (55.3%). The biggest part of this group has been the export of carbamide (32.8%), but also nitrate and phosphate fertilizers (12.3%), combined fertilizers (5.4%), ammonium saltpeter (2.7%), caoutchouc (1.4%), plus kalium fertilizers.

The second position is semi-finished products of ferrous and non-ferrous metals (21.3%). The main elements of this group are rolled iron profile (11.4%), aluminum and nickel products (3.4%), ferrochrome (0.7%), used rails for reprocessing – (0.6%), hot-rolled pipes (0.4%) and a variety of other products.

The third position is machine and equipment which in value terms totals (15.5%). The main items here are equipment and mechanisms for metal manufacture (13.6%), equipment for electric industry (0.7%), equipment for the automobile industry (0.7%) and equipment for the plastic and caoutchouc industries (0.5%).

In recent years Russian-Mexican cooperation in the scientific and technical fields developed under an effort entitled “The Program of Scientific and Technical Cooperation Between the Russian Federation and the Mexican United States”. Its priority directions are satellite technologies, environment protection and nature management, the agricultural sector, biotechnology, information technologies (IT), software, robotics and nanotechnologies.

The greatest results were achieved in carrying out the project of launching of the Russian-Mexican satellites for Earth monitoring. For instance, researching the cosmic rays of ultrahigh energy is done. Another focus works on the control and economic loss enhancement in oil and natural gas transportation.

Another activity is in research of the field of anti-tumor activity in strains and clones. Russia and Mexico are looking to diversify the amount of trade, which is fast growing, but it still does not match the two countries’ full potential. Both countries are looking to develop new large-scale joint projects, especially in the energy sector with the expectation of giving a new impulse in this direction.

This will be done by holding the 4th session of the Russia-Mexico Mixed Commission on Economic, Commercial, Scientific-Technical Cooperation and Marine Navigation. Also, there is a second bilateral Business Forum that is planned to be held in the short term.