About Tijuana

About Tijuana

International trade continues to be a major economic strength for the region. The border between San Diego and Mexico is the busiest border in the world! The San Diego/Tijuana bi-national economy is further enhanced by the North American Free Trade Agreement (NAFTA). Goods moving through the San Diego customs district totalled $23 billion in 1997.

Tijuana
The city is located at the Southwest border to the US is a center for highly competitive manufacturing. Overall, these factories known as Maquiladoras are a $55 billion Industry comprising over 750 plants primarily located at the US/Mexican border with emphasis around Tijuana. There are 150,000 workers at Maquiladoras in Tijuana alone. Tijuana has become the television producing capital of North America, if not the world, as Asian manufacturers opened manufacturing facilities in the region because of the inducement of NAFTA advantages. Baja California is a primary TV/VCR, and electronics production center of the world with most leading brands represented. Sony, Samsung, Sanyo, Hitachi, Hyundai, Daewoo and General Electric are some examples of companies represented in Tijuana. Other products suitable for a Maquiladora production are automotive products, electronic components, keyboards, refrigerators, plastics, toys, and paper products. Map

NAFTA
The North American Free Trade Agreement (NAFTA) between the US, Canada, and Mexico has further expanded this very competitive Maquiladora industry. Labor rates are less than $4/hour and include wages, benefits, utilities and rent. Compare this with $20-25/hour in the US. For labor-intensive production, this fact makes a significant difference. Often a twin plant is located just over the US border for research and development (R&D) work. Maquiladoras draw their labor force from Tijuana's eight colleges and technical schools, which graduate over 4000 students annually.
The substantial cost advantage and location within the NAFTA countries makes the Maquiladora's production highly attractive compared with a less stable Asia. Swedish companies such as Ericsson, Esselte, NSK and Autolive have already made this discovery.
There are three levels of production arrangements for Maquiladora's:
Shelter Operations: All-inclusive. Workers plus cost for special machinery. This facility is operated by a Mexican company.
Second level: A complete factory. Same as a shelter operation but on a much lager scale. The Swedish company Esselte has this type of facility.
Third option: A full-scale factory that is owned and operated by a US (or non-Mexican company). An example is the facility operated by Sanyo.
The Swedish-American Chamber of Commerce in San Diego/Tijuana will assist you in evaluating all phases of the various manufacturing options for your products at the Maquiladoras. Of utmost importance is the cultural differences between Scandinavia, the US and Mexico. We have the experience and expertise to guide your executives in this crucial area.

Mexico
A country with extensive natural resources (oil) and beauty, Mexico has 93 million people of which 24 million live in Mexico City.

Agriculture production, including grapes and citrus is an important industry. Tourism also plays a leading role in the economy. The beauty of Baja California on the Pacific Coast and the Yucatan Peninsula with its temples and Cosumel Island on the Caribbean Coast attracting visitors from all over the world.

Doing business with Mexico - useful links about Tijuana and Mexico
Sweden has a long tradition in Mexico with Ericsson first entering in 1904 and now joined by AGA, Electrolux, Atlas Copco, and others. Are you interested in doing business with Mexico or are you planning a trip there. Here are some links that can provide you with useful information.
Information about Tijuana: www.tijuana.com
Tijuana Economic Development Corporation: www.tijuana-edc.com
Information about how to do business in Mexico: www.executiveplanet.com/community/default.asp?section=Mexico