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            Mexico ’s metal mechanical sector is a critical axis in the nation’s economic activity, providing support for a variety of industries ranging from mining, fishery, electric-electronic, steel, automotive and transportation, among others.

            The metal sector represents about 12 percent of the country’s manufacturing GNP and consists of more than 30,000 companies that employ around 1,700,000 workers

            The year 2002, the last year for which complete statistics are available, saw a drop in slight dip in activity, 2003 is expected to show a rebound when the final statistics are compiled. In 2002, the Mexican industrial sector dropped 0.6 percent, the basic metallic industry registered a fall of 0.7 percent, and the machinery and capital goods sector decreased almost 2 percent. However, Mexico ’s metal mechanical sector was expected to grow around 2 percent during 2003.

            The recent performance of the production and exports in this sector shows its capacity to participate in the international markets, despite the world-wide economic recession that began in 2000.

            In 2002, the Mexican exports in this sector totaled more than $9.5 billion, a 6 percent increase over the year previous.

            The main Mexican exports in this sector are machinery parts, electric transformers, electric motors, steel sheets, industrial ovens, heaters and non electric stoves.

            On the imports side, 2002 imports totaled $21 billion, about 2.1 percent below the year previous. The main imports were: generators, transformers, electric motors, parts for industrial ovens, machinery parts and loading machines, among others.

            Mexican exports of metal mechanical products are mainly concentrated in the United States , which accounts for about 90 percent of the exports, absorbing a great part of the Mexican production in a wide variety of processes such as foundry, forging, machining and stamping.

            One of the main reasons for this high concentration, in addition to Mexico ’s proximity to the United States , is the possibility of exporting products to the United States to...

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