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The view from Japan.


by FitzGerald, Tara
Business Mexico • April, 2005 • AMCHAM SEMINAR

Mexico should look to foodstuffs and tourism, as well as niche markets, to boost its commerce with Japan once a free trade agreement between the two countries comes into effect in April, Japanese trade experts told an AMCHAM seminar.

"I think the food sector is one which has the greatest possibility of doing business with Japan," Tadayuki Nagashima, general director of the Japan External Trade Organization (JETRO) in Mexico, told delegates at the March gathering entitled "The Mexico-Japan Accord, Trade With China And The Opportunities For Your Business."

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"For example, in the last few years we have seen a boom in chile habanero. The No. 1 selling snack is a snack of chile habanero," Nagashima said, adding that promotion of agricultural and fish products from Mexico was also important. Japan is a major importer of foodstuffs.

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Concurring with this view, John Malott, managing director for the Asia-Pacific region at Manatt Jones Global Strategies and a Japan expert, also said Mexican exporters should take into account the importance of getting their name known in the incredibly brand-conscious Japanese market.

"I think there will be much greater value added to Mexican food exports to Japan if you can think about branding your products with a Mexican brand" rather than exporting as a bulk commodity, the former diplomat said.

However he also struck a note of warning about the food market in Japan.

"One thing to remember is that the Japanese are incredibly difficult when it comes to food safety. It only takes one incident to destroy your exports for some time to come," he said.

Kazuharu Kaneda, vice president of Toshiba de Mexico, echoed this point, saying there were four key factors for doing business in Japan: quality, cost, delivery and the consumer's peace of mind.

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Malott also pointed to Japanese tourists as a potential money spinner for Mexico.

"I think Mexico has tremendous potential to promote tourism. The Japanese are still among the greatest travelers in the world," he said. "The young women in Japan are the trendsetters .... and it's a very good market."

And he stressed the need for personal attention when seeking Japanese investment.

"In many ways, Japan and Mexico are alike in that personal relationships are important in doing business. It takes time to get to know people before you do business with them," Malott said.

"It requires a sustained, high-level effort to get the Japanese to invest. You really will need some cultural guidance and expertise on how to deal with them," he advised.


COPYRIGHT 2005 American Chamber of Commerce of Mexico A.C. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


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