Mexico: What to Expect If You Do Business There

Mexico's transition from a low-wage, low-income country to a middle-income industrialized nation makes it a land of both challenges and opportunities for US-based companies that want to expand with a strategic trading partner.

Trade

In 2016, Mexico ranked third, after China and Canada, as a top US trading partner.

2016 US Trade (all countries)

Hover over each region for more information

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Source: US Department of Commerce, Census
Bureau, Economic Indicators Division

Global Ranking

How Mexico ranks in the world:

#1Largest exporter of flat-screen televisions
#3Largest US trading partner
#4Largest automobile exporter
#5Ease of getting credit
#6Largest electronics industry
#7Largest automotive industry
#15Largest economy – $1.14 trillion
#38Ease of doing business
#41Enforcing contracts
#59Trading across borders

Source: World Bank Group


COST OF DOING BUSINESS

Mexico's peso has depreciated over the past few years, giving exports an added cost advantage.

Compared to many developing markets, inflation (based on the CPI, consumer price index) in Mexico is relatively tame—it has maintained about 3 percent annually. Price stability helps keep manufacturing costs predictable.

Historic CPI in Mexico Mexico's peso has depreciated over the past few years, giving exports an added cost advantage. 20151050 19971998199920002001200220032004200520062007200820092010201120122013201420152016

Source: World Bank Group


GROWING WORKFORCE

The generation now entering Mexico’s workforce will be the largest ever, projected to reach

84 million by 2020
Source: CIA World Factbook

TOP FOUR PRODUCTS IMPORTED TO OR EXPORTED FROM MEXICO

37% Machinery and Electrical
25% Transportation
6% Fuels
4% Metals
Source: World Integrated Trade Solution, The World Bank Group

WHERE TO CONSIDER LOCATING

US Border Region Benefits: Quickest access to US consumer markets
Central Mexico Benefits: Plenty of workers, strong automotive supply chain
Mexico City Benefits: Heart of growing domestic consumer market

Mexico City Benefits: Heart of growing domestic consumer market Central Mexico Benefits: Plenty of workers, strong automotive supply chain US Border Region Benefits: Quickest access to US consumer markets

Source: J.P. Morgan

 

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