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32 Negocios illustration oldemar The Friendship that Plowed through the Pacific This year, four centuries of bilateral relations between Mexico and Japan are being celebrated through the strengthening of a bond that began with a shipwreck. Mexico was the first Western country that recognized Japan’s autonomy. Today, Japan is the seventh biggest foreign investor on Mexican soil. By Karla Bañuelos SAENZ Mexico and Japan seem very far away from each other, separated by the vast Pacific Ocean. However, both nations have maintained a friendship that has lasted four centuries. This long and fruitful relationship began the way others end: with a shipwreck. In 1609, the sailing ship San Francisco, originating from New Spain (now Mexico), shipwrecked off the coast of what is today Onjuku, Japan. The ship had a crew of more than 300 onboard, including Don Rodrigo de Vivero, governor of the Philippines. During his stay in the Asian country, Don Rodrigo talked to Japanese authorities about trade and navigation. A year later, on October 17, 1610, the crew headed by Don Rodrigo ran aground on the coast of Acapulco, on board of San Buena Ventura. With them was a group of 23 Japanese traders who wanted to establish trade relations between the Asian continent and the New Spain. That was the first time both countries came together and today they have a solid bilateral relationship marked by mutual respect, trade and technical cooperation and cultural exchange. Japan is the seventh largest foreign investor in Mexico It was in 1888, during Porfirio Díaz’s government and after the restoration of Japan’s imperial system with Emperor Mutsuhito, when diplomatic relations between the two countries were formally established with the signing of the Friendship, Trade and Navigation Treaty. It was the first such agreement Mexico signed with an Asian country and it turned it into the first Western nation to recognize Japan’s autonomy. Diplomatic and trade relations between both countries were interrupted by World War II. They were renewed in the post-war years when Mexico began exporting various products to Japan, mainly husk rice, henequen, pita and zapupe (varieties of agave), jute (a plant fiber) and cotton. After 1951, Japanese imports increased as a result of the country’s economic expansion. In the second half of the 1950s, Japan imported manufactured goods from Mexico and it exported textiles, medicines, plastics, machinery, radios and automobiles. Between 1960 and 1965, Japan’s economy enjoyed a stage of tremendous growth this period is actually known as the “Japanese miracle.” Japanese companies began an internationalization process by establishing themselves in other countries. In Mexico it was mainly in the manufacturing industry, with a total of 27 companies setting up shop, including Nissan, Mitsui, Hitachi, Toshiba, Suntory, Mitsubishi, Matsushita, NEC, Ajinumoto, Citizen and Japan Airlines. The strengthening of a relationship As much in Mexico as in Japan there exists a series of governmental and private institutions that for decades have directed their resources to strengthening the relationship between both countries in all areas. In 1958, JETRO (the Japan External Trade Organization) was founded. It is a government-related group that promotes trade as well as investment, technological and cultural exchanges. The organization established an office in Mexico the same year it was created. Under JETRO’s sponsorship, a committee to strengthen relations between Mexico and Japan was founded in 1999. A year later, it published a report on the reasons and resulting effects of a free trade agreement between both countries. After a series of negotiations, the Economic Partnership Agreement was signed in September 2004. Since Japan in Mexico Japan External Trade Organization (JETRO) México www.jetro.go.jp/mexico/ + 52 (55) 5202 7900 + 52 (55) 5202 8003 Japanese Embassy in Mexico www.mx.emb-japan.go.jp + 52 (55) 5211 0028 The Japan Foundation www.jpf.go.jp www.fjmex.org + 52 (55) 5254 8506 Japanese Chamber of Commerce and Industry in Mexico www.japon.org.mx Japan International Cooperation Agency (JICA) www.jica.go.jp
eport mexico-japan 2005, this has allowed Mexico to consolidate itself as a production base for North, Central and South America, as it did in Europe. This is thanks to different trade agreements the country has signed with these regions. In October 2008, the fourth meeting of the committee was held. During this reunion, various topics were discussed including access of Mexican agricultural products to Japan; improvement of public security; immigration procedures; tourism; as well as other bilateral and trade topics. Another of the institutions that promotes bilateral relations is the Mexican Society of Japanese Studies (Someja), which supports understanding between both countries and provides information on related cultural, educational and trade activities. There is also the Mexico Japanese Association (AMJ), which brings together the Japanese community living in Mexico, as well as Mexicans interested in learning in depth about the Nippon culture. Its mission is to be a symbol of the Japanese community in the country. Mexico in Japan Ministry of External Relations www.sre.gob.mx Mexican Embassy in Japan www.sre.gob.mx/japon Mexico’s Ministry of Economy www.economia.gob.mx ProMéxico’s Office in Tokyo (813) 35 80 08 11 cc.japon@promexico.gob.mx Mexican Society of Japanese Studies + 52 (55) 5536 4024 Mexico Japanese Cultural Institute www.icmj.org/instituto.html Mexico Japanese Association (AMJ) www.kaikan.com.mx EXPORTS FROM MEXICO TO JAPAN IN MILLIONS OF DOLLARS 2000 930.54 2001 620.56 2002 1,194.21 2003 1,172.59 2004 1,190.50 2005 1,470.02 2006 1,594.04 2007 1,912.64 2008 2,046.04 2009* 491.88 * January to April SOURCE: BANK OF MEXICO Finally, the Mexico Japanese Cultural Institute, a nonprofit community group, supports cultural exchange and understanding between both countries. Bilateral relations In the last few years, Latin America has turned into the region with the biggest increase in exports to Japan. The Asian country has a free trade agreement with Chile and maintains important trade relations with Argentina and Brazil. However, Mexico remains its main trading partner in the region. Japan is at the top of the list of Asian countries that buy Mexican products. In 2008, Mexican exports to Asia increased to nearly 8.7 billion usd. Close to 2.1 billion usd of this total were from Japan, whereas 2 billion usd were received from China; 1.7 billion usd was the sum from South Korea, Taiwan, Hong Kong and Singapore; and 1.5 billion usd proceeded from India. Among Mexican exports to Japan that have experienced the biggest increase, the main industry is agricultural products. In 2008, their exports increased by 21.6% from the previous year, reaching a total of 757 million usd. Of these products, meats represent 50% of exports, making Mexico Japan’s fourth biggest trade partner in beef and pork products. Other Mexican products that have increased their presence in Japan are fruits like avocado, melons, and bananas. According to figures from Mexico’s Ministry of Economy, Japan is the seventh largest foreign investor in Mexico, with more than 4 billion usd between 1994 and 2008, which represent around 3% of all FDI in the country during that period. Most of Japanese investment in Mexico can be found in the electronic, automotive, aeronautic, clean technologies and information technology industries. In 2008, nearly a dozen Japanese production plants connected to the automotive, electronics and computer sectors, and run by such companies as Isuzu Motors, Hino Motors, Toyota, Sumimoto and Casio Computer Co., were opened in Mexico. n
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