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Well you know all about -- made in China of course but what about it made in Mexico a report out from RBC capital markets -- Mexico indeed is gaining an edge.
In the battle for market share of US imports.
Claudio Gonzalez is chairman of Kimberly -- Mexico division with sales of over two billion dollars.
Is joining us now to talk about that and so much more.
A cloudy -- thank you for being here at Mexico doesn't quite happy to wage advantage over China but -- but it does seem that.
Now that China is experiencing some wage inflation that Mexico really has great opportunity in terms of being importer in the United States more so than it is now.
You're absolutely right we're not only starting to close the wage gap.
But we've got a big transportation -- and we've got a big -- advantage because we've got the North American Free Trade Agreement.
And the top it off we have an energy advantage now with shale oil.
I was shale gas and all of North America is blessed with this shale gas and -- gonna make energy costs in.
Very competitive and future whereas China has high energy costs.
Are all interest its interest in points the inflation one especially as you mentioned but just the proximity did geographic location right you talk about.
For your business how much does that matter what states in the United States leading the most business -- because you're not as far away.
China well I think Mexico does a lot of business with all of the states but you know I was.
Looking yesterday that in the latest census Texas is now become a trillion dollar economy.
Yeah and look at this is the business I guess -- surface trade with Mexico and -- Texas up -- 114.
Billions much bigger than than those of us this course different everything is Texas -- one of the reasons why Texas is becoming -- trillion dollar economy is that it's a neighbor to Mexico.
Right who caught -- though when people -- Mexico they inevitably -- think of drug violence and as the chairman of the division of Kimberly-Clark how do you cope with that and how -- and to what extent does it get in the way of -- doing business.
Well it's a big issue and it's an issue that is not going to go away easily.
It's an issue that a rises because of drug consumption in the US.
But little by little as we build up a larger middle class in Mexico it's also.
Starting to be consumed in Mexico drugs and so it's it's -- it's a big challenge and it's not going to go away easily.
The way we've got through face at this we've got to contain at first.
Then we've got the build up our institutional capability to deal with the deal with the violence and including social inclusion.
What I mean by that creating jobs and creating university opportunities for our youth -- so that they don't become -- To these cartels are right the chairman of Kimberly-Clark's Mexico division -- Gonzales thank you very much for coming well thank you very.
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