foreign trade 2021-10-20T17:17:54+00:00

MEXICO

 

Mexico is one of the most competitive countries in the world for productive investment due to its macroeconomic and political stability, low inflation, size and strength of its domestic market, economic growth rate and capacity to produce advanced manufacturing.

Mexico is the gateway to the most important market in the world. It is part of the largest economic bloc in the world (T-MEC).

Mexico has a network of thirteen free trade agreements that grant preferential access to 50 countries, 32 Agreements for the Promotion and Reciprocal Protection of Investments (APPRIs) with 33 countries and 9 limited scope agreements (Economic Complementation Agreements and Partial Scope) within the framework of the Latin American Integration Association (ALADI).

Mexico actively participates in multilateral and regional organizations and forums such as the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation Mechanism (APEC), the Organization for Economic Cooperation and Development (OECD), and ALADI.

It is an ideal export platform to reach two thirds of global Gross Domestic Product (GDP).

Mexico is a leading exporter of high-tech advanced manufacturing and the largest exporter of Latin America.

Mexico ranks 25th among the most attractive countries to invest, according to the 2019 World Investment Report of the United Nations Conference on Trade and Development (UNCTAD). It offers some of the most competitive costs in North America.

Mexico is a country with a favorable environment for business, ranked 54th in the World Bank’s Doing Business 2019 report.

In 2019, Mexico received 2.14% of total FDI flows, which allowed it to rank 14th worldwide.

In 2019, Mexico was ranked 48th within the Global Competitiveness Index, which led it to place 50th in the IMD’s 2019 World Competitiveness Yearbook, only below Chile within Latin American countries.

Mexico offers modern and world-class infrastructure.

MEXICO BY SECTOR

  • The aerospace sector is located mainly in the states of Baja California, Nuevo Leon, Queretaro and Sonora.
  • Mexico is an important logistics and aerospace manufacturing hub of Latin America.
  • Mexico is the sixth aerospace supplier to the United States.
  • Mexico designs sophisticated components for the aerospace sector.
  • Mexico is America’s most competitive country in terms of aerospace manufacturing costs.
  • Mexico is the most competitive country in America in terms of aerospace manufacturing costs.
  • General Electric (GE), the leading producer of aircraft engines in the world, has its largest Center for Research and Design outside of the US and Canada, in Querétaro.
  • General Electric (GE) is the largest producer of aircraft engines in the world, and its biggest Center for Research and Design outside the US and Canada, is located in Queretaro, Mexico.
  • Mexico is a member of the Wassenaa Arrangement, one of the main multilateral regimes for the regulation of high-tech and dual-use exports developed in the country.
  • Thanks to the participation in the Wassenaar Arrangement, the national industry has access to a potential market for high technology exports for more than eight billion dollars per year.
  • In 2018, the exports of the sector reached an approximate value of 8.5 billion dollars, 12% more than in 2017, which represented a 20% surplus in the trade balance.

 

  • Mexico is the seventh producer and the fourth exporter of light vehicles worldwide.
  • Mexico is the second exporter of vehicles to the United States.
  • In 2018, Mexico ranked as the fifth largest producer of heavy vehicles worldwide.
  • In 2018, Mexico became the leading exporter of truck tractors worldwide.
  • Mercedes-Benz, Infiniti, BMW, Toyota, Kia and Audi are the most recently entered companies in the Mexican industry.
  • In Mexico, manufacturing plants have 21 of the most important vehicle manufacturers (OEMs) and more than 300 first-tier suppliers (TIER 1).
  • Compared to the United States, Mexico offers savings of 12.3% in auto parts manufacturing costs, 16.3% in metallic components, 9.8% in precision components and 15.2% in plastic inputs used in the industry.
  • Mexico is a leading designer and manufacturer of powertrains, seatbelts, seats, suspensions and chassis, spring elements, metal parts and lighting harnesses, among others. Ninety of the top 100 auto parts companies in the world are located in Mexico. More than a dozen models are produced exclusively in Mexican territory.
  • 89 of the top 100 auto parts companies in the world operate in Mexico.
  • Mexico is the sixth largest producer of auto parts in the world and the leading export in this sector in Latin America.

 

  • Mexico is an important investment destination in Latin America, with 23% of all software projects in the region.
  • Mexico is the country with the most competitive operation costs for digital entertainment and software design in America; it was ranked second investment destination in Latin America and the top destination in America to establish IT companies.
  • The IT and software industry in Mexico is one of the fastest developing sectors: it has grown at an average annual rate of over 13.8% in the last 10 years.
  • Mexico is one of the main markets in Latin America for investing in cloud computing technologies.
  • Currently, there are 30 IT clusters in 23 federal entities, which group more than 1,500 companies and have an aggregate turnover of more than $ 2.1 BUSD.
  • This market value has had a growth of almost 14% over the last 10 years.

 

  • Mexico is the second biggest producer in the electric sector in Latin America.
  • The United States is one of the main destinations for Mexican-made electric products.
  • Mexico is one the main suppliers in the United States market of electrical power generation and distribution equipment products, in addition to being the second largest supplier of lighting accessories as well as other electric equipment and accessories.
  • Companies that are emblematic of the sector operate in Mexico, such as: ABB, Furukawa Electric, Schneider Electric, Siemens, Alstom, General Electric (GE) and Mitsubishi Electric, between others.
  • Mexico is the main exporter of the electronics industry in Latin America.
  • The cost of electronics assembly in Mexico is 11.9% lower than in the United States. In addition, Mexico has significantly lower operating costs for the manufacture of electronics equipment and components compared to nine other leading countries in the industry.
  • Mexico’s costs are 13.8% lower than the United States for the manufacture of telecommunications equipment. Mexico also stands out as the country with the lowest operating costs in the manufacture of telecommunications equipment compared to nine other leading countries in the industry.
  • Mexico City and Monterrey are the most competitive cities with the lowest costs in electronics assembly and telecommunications equipment manufacture in 2014, positioning above 107 other cities in North America, Australia, Japan and some European countries.
  • Important companies that manufacture original equipment (OEMs), semiconductors and electronic components have operations in Mexico, such as: LG, Samsung, Panasonic, Skyworks, Amphenol and Falco Electronics.
  • 9 out of the 10 leading electronic manufacturing service multinational companies are settled in the country.

 

  • Mexico is one of the main exporters of household appliances in Latin America.
  • Mexico stands out as the country with the lowest manufacturing costs of metallic and plastic components in America, according to a KPMG study.
  • Mexico offers 13.4% savings in manufacturing costs of metal components, compared to the United States.
  • Mexico offers 7.8% savings in manufacturing costs of plastic components compared to the United States.

 

  • Mexico exported more than 35 billion dollars in agri-food products during 2020.
  • Mexico is the main supplier of agricultural products to the United States, with $ 29.1 billion in 2020.
  • Mexico is the third largest producer of processed foods in America and ranks third in sales by market value in America. Processed foods represent 24% of manufacturing GDP.
  • The FDI captured in 2019 was more than 716 million dollars for the food industry, 1,941 million dollars for the beverage industry and more than 75 million dollars in agriculture, breeding and exploitation of animals.
  • Mexico exports Tequila, Mezcal and Sotol, three drinks with Denomination of Origin that can only be produced in the country.
  • Mexico is renowned as one of the five leading producers and exporters of Organic Coffee.
  • The main export products are: Beer, Avocado, Tomato, Tequila and Mezcal, Cookies, Chiles, Strawberries and Raspberries, Cattle, among others.
  • Mexican agri-food products are present in more than 150 nations.

 

  • Mexico’s potential to generate renewable energy is one of the most robust in the world.
  • Mexico’s energy potential exceeds 100 GW.
  • Approximately one fourth of Mexico’s installed capacity to generate electricity comes from renewable sources.
  • Mexico’s geothermal and solar resources are among the best in the world.
  • The potential to generate wind power amounts to more than 40 GW.
  • It is estimated that in 2027, 21,089 MW of installed capacity will be added in the sector.

 

  • Mexico is the seventh producer and the fourth exporter of light vehicles worldwide.
  • Mexico is the second exporter of vehicles to the United States.
  • In 2018, Mexico ranked as the fifth largest producer of heavy vehicles worldwide.
  • In 2018, Mexico became the leading exporter of truck tractors worldwide.
  • Mercedes-Benz, Infiniti, BMW, Toyota, Kia and Audi are the most recently entered companies in the Mexican industry.
  • In Mexico, manufacturing plants have 21 of the most important vehicle manufacturers (OEMs) and more than 300 first-tier suppliers (TIER 1).
  • Compared to the United States, Mexico offers savings of 12.3% in auto parts manufacturing costs, 16.3% in metallic components, 9.8% in precision components and 15.2% in plastic inputs used in the industry.
  • Mexico is a leading designer and manufacturer of powertrains, seatbelts, seats, suspensions and chassis, spring elements, metal parts and lighting harnesses, among others. Ninety of the top 100 auto parts companies in the world are located in Mexico. More than a dozen models are produced exclusively in Mexican territory.
  • 89 of the top 100 auto parts companies in the world operate in Mexico.
  • Mexico is the sixth largest producer of auto parts in the world and the leading export in this sector in Latin America.

 

  • Mexico is the first producer and exporter of silver in the world.
  • Mexico is the second gold producer in Latin America.
  • Mexico is the third producer of copper in Latin America.
  • It is among the top 10 producers of 16 different minerals: silver, bismuth, fluorite, celestite, wollastonite, cadmium, molybdenum, lead, zinc, diatomite, salt, barite, graphite, gypsum, gold and copper
  • Mexico is the leading investment destination for mining exploration in Latin America and fourth worldwide.
  • Mexico is the second-best positioned country in Latin America in terms of mining policies, considering best industry practices and unrestricted land use.
  • The mining-metallurgy trade balance has shown a surplus in recent years.

 

  • In 2018, the exports from the textile and clothing industry reached a value of 6,797 million dollars, ranking as the fifth largest supplier worldwide. 86.8% of total textile exports went to the United States.
  • In Mexico there are more 3,700 economic units dedicated to the jewelry sector.
  • Mexico is the thirteenth biggest exporter of silver jewelry in the world.
  • Mexico is the fourth biggest supplier of textile and clothing products to the United States.

 

  • Mexico is the leading exporter of medical devices in Latin America and is the eighth exporter of medical devices in the world.
  • Mexico offers low manufacturing costs; In addition, it counts on the presence of complementary industries highly developed that can provide support and excellent supplier to the sector of medical devices.
  • In 2019, Mexico ranked as the fifth provider of medical products in the United States.
  • Third exporter of tubular metal needles and needles for suture in the world.
  • Fourth exporter of medical, surgical, dental or veterinary furniture in the world.
  • Ninth exporter of optical and medical instruments and devices in the world.
  • Seventh exporter of therapeutic respiration apparatus worldwide.
  • Mexico is among the Latin American countries with the highest savings in production costs for medical devices.

 

    • Mexico is an attractive investment destination for the pharmaceutical industry.
    • Mexico is the second largest pharmaceutical market in Latin America and an important producer of high-tech drugs. The national industry represents, on average, 1.2% of national GDP and 7.2% of the manufacturing GDP.
    • The main companies of the pharmaceutical industry in Mexico are: Merck, Boehringer-Ingelheim, Schering Plow, Pfizer, GlaxoSmithKline, Bayer, AstraZeneca, Eli Lilly Company, Novartis, among others
    • It boasts an improved regulatory framework, which protects intellectual property and demands an increasing amount of quality certifications.
    • In terms of costs, Mexico stands out as one of the countries with the greatest savings in manufacturing in the pharmaceutical industry.

    In 2018, Mexico is the eleventh market for pharmaceutical products, with a turnover of more than 17,000 million dollars.

 

  • In 2019, Mexico ranked second in Medical Tourism worldwide.
  • Mexico has more than one hundred hospitals certified to international standards.
  • Compared to the United States, Mexico offers savings on medical services of between 35% and 90%.

 

  • According to the World Tourism Organization, Mexico is among the top tourist destinations worldwide.
  • Mexico is the leading tourism destination in Latin America and one of the most important in the world.
  • 33 locations and traditions recognized by UNESCO as World Heritage.
  • More than 45,000 archaeological sites.
  • The history and myths of the Mayan World are a source of great ethnic and historic wealth.
  • Three thousand years of history that preserve 65 ethnic groups.
  • Mexican gastronomy is one of only three cuisines in the world declared as Intangible Cultural Heritage by UNESCO.
  • Mexico is home to 10% of the world’s biodiversity.
  • More than 176 protected natural areas.
  • Mexico has the second largest coral reef in the world.
  • Mexico is one of the best places to retire in the world.

 

  • In 2019, Mexico ranked second in Medical Tourism worldwide.
  • Mexico has more than one hundred hospitals certified to international standards.
  • Compared to the United States, Mexico offers savings on medical services of between 35% and 90%.

FREE TRADES & AGREEMENTS

  • Free Trade Agreement Mexico – United States – Canada. (T-MEC, USMCA or CUSMA). Effective since 2020
  • CPTPP Comprehensive and Progressive Agreement for Trans-Pacific Partnership

(Mexico, Canada, Peru, Chile, Japan, Vietnam, Brunei Darussalam, Malaysia, Singapore, Australia, New Zealand). Effective since 2018

  • Free Trade Agreement Mexico – Pacific Alliance (Mexico, Chile, Colombia, Peru). Effective since 2016
  • Free Trade Agreement Mexico – Panama. Effective since 2015
  • Free Trade Agreement Central America (Mexico, Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua). Effective since 2012
  • Trade Integration Agreement Mexico – Peru. Effective since 2012
  • Economic Partnership Agreement Mexico – Japan. Effective since 2005
  • Free Trade Agreement Mexico – Uruguay. Effective since 2004
  • Free Trade Agreement Mexico – EFTA (Iceland, Norway, Liechtenstein & Switzerland). Effective since 2001
  • Free Trade Agreement Mexico – Israel. Effective since 2000
  • Free Trade Agreement Mexico – Chile. Effective since 1999
  • Free Trade Agreement Mexico – Colombia. Effective since 1995
    • Economic Complementation Agreement Mexico – Argentina. No 6 Effective since 2001
    • Economic Complementation Agreement Mexico – Bolivia. No 66 Effective since 2010
    • Economic Complementation Agreement Mexico – Brazil. No 53 Effective since 2003
    • Economic Complementation Agreement Mexico – Cuba. No 51 Effective since 2001
    • Economic Complementation Agreement Mexico – Mercosur. No 54 Effective since 2002
    • Economic Complementation Agreement Mexico – Mercosur. No 55 Effective since 2003
    • Economic Complementation Agreement Mexico – Uruguay. No 5 Effective since 2001
    • Partial Scope Agreement Mexico – Ecuador. No 29 Effective since 2007

     

Argentina

Australia

Austria

Bahrain

Barbados

Brazil

Canada

China

Colombia

Czech Republic

Estonia

Germany

Greece

Hong Kong

Hungary

Iceland

India

Indonesia

Italy

Kuwait

Latvia

Lithuania

Luxembourg

Malta

New Zealand

Netherlands

Panama

Poland

Qatar

Romania

Russia

Singapore

Slovak Republic

South Africa

Switzerland

Turkey

Ukraine

United Arab Emirates

United Kingdom

Uruguay

Argentina – Effective since 1998

Australia – Effective since 2007

 

Austria – Effective since 2001

Bahrain – Effective since 2014

Belarus – Effective since 2009

Belgium-Luxembourg Economic Union5Effective since 2003

China – Effective since 2009

Cuba – Effective since 2002

Czech Republic – Effective since 2004

Denmark – Effective since 2000

Finland – Effective since 2000

France – Effective since 2000

Germany – Effective since 2001

Greece2Effective since 2002

Iceland – Effective since 2006

India – Effective since 2008

1 The date corresponds to a renovation that was signed with Spain in 1996.

2 Agreement between the Government of the United Mexican States and the Government of the Hellenic Republic for the Promotion and Reciprocal Protection of investment.

3 Agreement on the Reciprocal Promotion and Protection of Investments between the United States of Mexico and the Kingdom of the Netherlands.

4 Agreement between the Government of the United Mexican States and the Government of the United Kingdom of Great Britain and Northern Ireland for the Promotion and Reciprocal Protection of Investments.

5 Belgium-Luxembourg Economic Union formed by the Government of the Kingdom of Belgium, acting both on its own behalf and on behalf of the Government of the Grand Duchy of Luxembourg, under existing agreements, the Government of Wallonia, the Government of Flanders, and Government of the Brussels-Capital Region.

Font: Ministry of Economic

Italy – Effective since 2003

Korea – Effective since 2002

Netherlands3Effective since 2000

Panama – Effective since 2006

Portugal – Effective since 2001

Singapore – Effective since 2011

Slovakia – Effective since 2009

Spain1Effective since 2008

Sweden – Effective since 2001

Switzerland – Effective since 1998

Trinidad & Tobago – Effective since 2007

United Kingdom4Effective since 2007

Uruguay – Effective since 2002

Fonts: Ministry of Economy / National Institute of Statistics and Geography / The World Bank.