Trade Flourishing, Economy Open in Post-NAFTA Mexico

The main exhibit area at Monterrey's Cintermex speaks volumes about Mexico's current trade relationship with its North American neighbors. Christened NAFTA, the area is divided into three spaces: the Mexico Room, the USA Room and the Canada Room.

Before embarking on a path of economic liberalism in the 1980s, Mexico discouraged foreign investment, and major industries were government-run. As more and more trade agreements were signed, including the General Agreement on Tariffs and Trade in 1986 and the North American Free Trade Agreement in 1993, Mexico slowly but steadily opened its doors to the world.

Phone-service operator TELMEX, mining company Minera Canoa and TV Azteca are all now private companies. Non-Mexicans can hold professional positions. But some industries remain off limits to private investors: oil production, electricity, nuclear power, mail delivery, ports and currency. And foreign investment is still regulated.

Mexico's relationship with the world is much changed. Privatization has spurred growth in the country of 105 million and inspired the creation of new industries, such as environmental regulation. The northern part of the country is home to dozens of maquiladoras, manufacturing operations intended to take advantage of Mexico's low labor rates. But some manufacturers are now pondering moving to China, where labor rates are even lower.

A sign of Mexico's thriving business climate is the more than 100 expositions that take place in the country each year, according to Tradeshow Week figures. They range from association events for industries from textiles and telecom to farming and furniture, to shows run by companies like Grupo Expo and REMEX.

The lion's share of tradeshow activity takes place in three major cities. Forty-two expositions are held in the capital of Mexico City, home to about 13 million; 16 in central Mexico's Guadalajara, where 1.6 million live; and 30 in Monterrey, located in the northern part of the country.

Major venues include Mexico City's Centro Banamex and World Trade Center, Guadalajara's Expo Guadalajara, and Monterrey's recently renovated Cintermex, which hosts 565 events, including tradeshows, per year.

While some American show organizers, such as Penton Media and Intl. Trade Information, have sponsored events in Mexico over the years, E.J. Krause & Associates has had the highest profile for decades.

The Mexico Tourism Board would like to draw even more show management companies to the country. Last fall, the board opened a national convention bureau – la Oficina de Congresos y Convenciones de Mexico – to coordinate efforts by 18 convention and visitor bureaus and 21 tourism offices to draw tradeshows and conventions.

Al Zapanta, president and CEO of the United States-Mexico Chamber of Commerce, said NAFTA has gone far in clarifying the rules of the game. But laws written in Spanish and not available on a searchable database keep foreigners at a disadvantage.