Mexico's membership in BERD means benefits

Mexico´s membership in BERD means benefits

By Carmen Flores Vallejo
Bancomext.

Mexico´s membership to the BERD seeks to give the country the opportunity to diversif

y its foreign trade and investment markets to Central and Eastern Europe. This could turn into business opportunities in terms of bids, co-investment, investment projects, or exports of products made in Mexico.

If your company sells or buys in any BERD country and you would like to assure payment from your clients or providers through financial trade mechanisms insured by national banks, you could benefit from the Trade Facilitation Program (TFP). Bancomext established the TFP with the BERD and is responsible for its operation. One should remember that under the TFP, the BERD assures payment according to guaranteed financial trade mechanisms from selected banks. BERD guarantees can be used on all kinds of merchandise including basic products and equipment, except those products specifically excluded for environmental and/or other reasons. The following is a partial list of the BERD financial trade mechanisms:

	*Credit letters, stand by credit letters, and guaranteed payments
	*Payment stubs related to foreign trade and change letters
	*Bid guarantees, contracts, and anticipated pay
	*Construction guarantees, rental guarantees

BERD membership offers varied benefits to Mexico and one must consider the growing trade and investment opportunities in emerging eastern Europe now that that region will become part of the European Union.

In order to expand your ties to this part of the world, which is full of economic potential, we invite you to participate in the annual BERD meeting being held in London, England this April 18th and 19th. In addition to panels and experts from different business sectors and countries sharing key information, the event also offers you the opportunity to meet with major players from the region, including public authorities, investors, non-government organizations, and the press.

Business opportunities for Mexican Companies

After ten years of economic reform, free market structures in countries like Poland, Slovenia, the Czech Republic, Hungary, and Bulgaria have resulted in sustained growth and huge amounts of direct foreign investment.

Currently the business relationship between Mexico and Eastern Europe is weak, but full of potential. Our main business partners in that part of the world are Russia, the Czech Republic, Poland, and Hungary.

In this environment of high expectations and optimism, Mexican exporters would be well advised to take advantage of the free trade agreement it signed with the European Union, especially considering the acceptance of Poland, the Czech Republic, Slovakia, Hungary, Lithuania, Latvia, Slovenia, and Estonia to the EU. This block of countries alone represents 100 million consumers in an already powerful EU market.

bancomextuk@bancomext.co.uk