Ambassador of Norway in Mexico, Merethe Nergaard
What has been the history of the economic relationship between Norway and Mexico?
Norway has had diplomatic relations with Mexico since 1906. Only one year after we gained our independence. Although our economic relationship has been limited in the past, there has always been some commercial exchange, for example in bacalao and coffee.
In more recent history, the flow of capital and goods between the two countries has steadily increased. Norway, as a member of EFTA, has had a free trade agreement with Mexico since 2001. Through this agreement, Norwegian exports to Mexico amounted to USD 128 million and USD 61 million in FDIs in 2016, while Norway’s Mexican imports equaled USD 203 million. Our total trade in services for 2015 reached USD 307 million, 73% of which were Norwegian service exports to Mexico. EFTA and Mexico are currently in the process of modernizing the FTA that will hopefully lead to increased flows of goods, capital and services.
As of 2016, the Norwegian Sovereign Wealth Fund has also invested almost USD 10 billion in Mexico, more than in any other Latin American country.
Both countries are petroleum producers, how has this influenced the development of trade relations between the countries?
Up until Mexico’s recent energy reform, the scope for Norwegian activity in the Mexican oil and gas sector was rather limited. Notwithstanding, for years we have had an extensive exchange of experiences in this field between our two countries. Statoil established its Mexico-office already in 2001. Statoils presence and hard work has now also been rewarded with successful bids for two blocks in the Saline Basin in the Mexican deepwater, in the Round 1.4 in December last year. This and the development in Mexico’s energy sector mean a lot for our future bilateral cooperation and commercial activity.
We have valuable experience in fields like regulation, standards, and capacity building, as well as an advanced industry with state of the art technology and knowhow. Accordingly, I believe that Norway, and its many companies within the industry, can be key partners for Mexico in making the Energy reform a success. Not only in petroleum and gas, but also in renewable energies where we have considerable experience.
Mexico and Norway are not members of OPEC yet have attended meetings as observers. Why do youthink both countries have decided to remain independent and has this created a need for deeper cooperation between the two countries?
Both Norway and Mexico are members of OECD and closely linked to the EU and the US, it is therefore not natural to become members of OPEC. We do however have a good dialogue with other countries, among them Mexico, about the oil market.
Beyond petroleum, what are the trade ties that connect Norway and Mexico together?
Norway imports among other things vehicles, electrical machinery and mechanical machinery from Mexico. Our exports include fertilizers (47%), mechanical machinery (9%) and seafood (9%).
There is also a great potential for increasing tourism between our two countries. For that reason we are now negotiating an aviation agreement between the Scandinavian countries and Mexico.
What role do you expect agriculture and fishing to play in the future of trade relations?
Although agriculture might be a complicated matter in FTA-negotiations, I am certain both Norway and Mexico have great interest in increasing the exchange of agricultural products. We have certainly noticed the increasing interest and demand for Norwegian fish in the Mexican market, particularly Norwegian Bacalao (cod), which has become a staple of the Mexican Christmas dishes. For this reason, the Norwegian Seafood Council has allocated funds to promote bacalao exports to Mexico.
I also believe that there could be great potential for Norway to export a lot of the technology and expertise from our fishing and fish farming industries, and assist Mexico in developing a modern, sustainable and profitable fish-farming industry of their own.
Crown Prince Håkon visited Mexico in 2009 and 2012. What was the purpose of these visits and did it have any noticeable change on the economic relationship?
The Crown Prince and Princess had a formal visit to Mexico in 2009. The main purpose for that visit was to promote trade and bilateral cooperation between our two countries. The Crown Prince’s visit in 2012 was in relation with COP 16 conference. Both visits were quite successful and contributed to even closer relations, also economically.
No Mexican president has yet to visit Norway? If the current or future president would decide to visit, what do you think would be the reception?
In fact we have for a long time planned for a State visit to Norway of the President of Mexico. Unfortunately, it has not yet been possible to realize. An official State visit to Norway would provide great opportunities to further strengthen our bilateral relationship in so many areas, the potential is enormous.
Norway and Mexico also have a very close collaboration in multilateral fora f.ex. in the UN and in WTO. We share very many views and priorities when it comes to humanitarian affairs, human rights, disarmament, climate change, sustainability goals and free trade.
