WorldCity Business Magazine

Q&A with Jorge Barreto

by Mary Dempsey

Jorge Barreto is an old pro when it comes to Miami. The Mexican native recently left Mexico City to return to Florida to serve a third term as trade commissioner for his home country. In 1985, Barreto opened the Miami office of the Instituto Mexicano de Comercio Exterior, which later became government trade-promotion entity Bancomext. In 1993, during his second term as the trade commissioner in Miami, Barreto joined 20 other business people including now-Gov. Jeb Bush, who was at that time a real-estate developer in launching the American-Mexican Association of Florida. Four years later, Barreto was one of the founders of the Inter-American chapter of the U.S.-Mexico Chamber of Commerce in Coral Gables.

As he begins his third assignment with Bancomext, Barreto wants to boost his country’s exports to South Florida. Mexico is the United States’ No. 2 trade partner, but it is only No. 16 when it comes to the Miami area. Last year, South Florida and Mexico posted more than $600 million in commerce, leaving the Latin American powerhouse trailing countries such as Brazil, the Dominican Republic, Costa Rica, Honduras and Guatemala. Barreto says the trade will grow, in part through in-transit shipments that pass through Miami and Fort Lauderdale en route to Latin America and the Caribbean. The trade commissioner’s idea is use South Florida as a hub for Latin America, the Caribbean and Europe. He also wants to stimulate trade between Florida and Mexican cities on the shores of the Gulf of Mexico.

How do you see doing business in South Florida today compared to when you first arrived in Miami?

Twenty years ago, countries that traditionally did business with Miami were in the Caribbean and Central America. At that time, Mexico’s trade was mostly in Texas and California. I think there’s much more competition today than back then. At the same time, because Miami is the business center of the Americas, there are a lot more opportunities.

So Miami has changed as a place to do business?

The city has broadened its scope to include countries in Europe and Asia. Miami has also grown a lot and has a range of businesses and industries, especially in construction. Another difference from 20 years ago is that traffic today is a lot more congested. The city deserves updated solutions for ground transportation.

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South Florida* saw a 60 percent jump in imports from Mexico to well over $500 million last year. How did that happen?*

We have been handling a higher number of exports of textiles and construction materials from Gulf Coast ports in Mexico. Miami has become a springboard to all areas of the world. Most of what Mexico exports to Europe, for example, has to go through Miami. This city just has a natural logistics future. We are also exporting more to Caribbean nations, including building materials and healthcare aids like surgical equipment, medical gloves, cotton and uniforms.

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Why not ship directly from Mexico to the Caribbean?

There are not enough direct shipping lines from Mexico to different countries in the Caribbean. So sometimes huge shipments come to Miami and are distributed to each country individually.

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*In the Caribbean, where does Mexico have the most trade? *

We have a lot of trade with the Dominican Republic. We also do business with Puerto Rico, but Puerto Rico is a United States’ territory.

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What is Bancomext’s mission?

Bancomext has two different functions. It finances Mexican businesses with loans to help companies create more products and services. We have a special program for technology companies Bancomext also does market research and provides information on importers.

So how does it work for Mexican companies interested in South Florida and vice-versa?

My role is to promote exports to the United States, more specifically South Florida, and Caribbean channel investments into Mexico. We are going to be constantly in contact with chambers and associations. We also organize trade missions, matchmaking events with local companies. In April, we’ll be participating in Orlando’s international trade exposition. We already have a pavilion with 10 exhibitors. In September Bancomext is involved in a beach and surf wear show in Orlando.

Orlando*? Why not Miami? *

What is happening is that a lot of trade shows are heading to Orlando because it has a bigger convention center.

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How broad is the trade commission’s reach?

The Miami office is in charge of the entire states of Florida, Mississippi and Louisiana.

What are your ultimate goals?

One is to use Miami as a springboard to Latin America and the Caribbean. We have to take advantage of Miami being a business center.

Are you targeting any particular types of companies?

We are trying to find companies with alternative sources of energy. We are willing to start new ventures and new offices for Latin American and Caribbean businesses. Recently we welcomed three companies from the Yucatan interested in selling juices, hammocks and polyester to Caribbean nations as well as to local companies.

What does Mexico have to do to increase business with Florida?

We need to work harder to increase opportunities. We want to see a stronger and larger

Mexican community. Products will follow as long as our community grows. Since early 2005, the state of Merida, located on the Gulf of Mexico, has been working on a project called Plataforma Logistica. Plataforma Logistica is still in its initial stages but, basically, it is a consolidation center of warehouses which reunites sea ports, railroad and truck stops. An area devoted to logistics export center.

Although Mexico is a major trading US partner, the country is only No. 16 with Miami. Why is that?

We need to clarify this. The grading of imports and exports is misleading. The majority of our products to Florida come by trucks through the Texas border and therefore are registered to Texas. In fact, 80% of total exports from Mexico to the United States come by truck. But we are exporting all kinds of goods to Florida from foodstuffs, to apparel, building products, furniture, seafood, and little by little, more industrial products.

*Now that you’re back in Miami again, is it a better place to do business? *

It is.

What did you miss the most about South Florida when you were living in Mexico?

Shopping in Miami is definitely one of the things that I missed the most.