Opportunities for International Business in Mexico

Expanding abroad? Find out about opportunities for international business in Mexico, and how local market entry specialists can support your new commercial venture.

Mexico is a celebration of colour, variety and ancient tradition. This intriguing land shares its borders with the US, Guatemala and Belize. Mexico’s total area spreads over a diversified 1,964,375 sq km. The country has a Spanish-speaking population of nearly 130 million. Mexico is classified as a federation that constitutes 31 states and has one federal district called Mexico City, which is also its capital.

Akin to its diversities, Mexico’s political framework combines ideologies and emerges with a federal, presidential, and representative democratic system. There are three levels of government in the Mexican political mix:

• The Federal Union
• The State Governments
• The Municipal Governments.

The President of the United Mexican States- also Head of State and Government and the Commander in Chief of the Mexican military- appoints the cabinet, and handles law execution.

Mexico offers a varied platter of cherished historical sites, enchanting terrain, and unique cultural and political influences. Free trade policies place it as a highly accessible spot for over 40 countries. This has resulted in Mexico being known as one of the top trade destinations in the world.

International business in Mexico: vital data (2017 onwards)

See summarized data points about Mexico’s economy below.

Population (million) — 129.2

GDP (billion USD) — 1.15

GDP per capita (USD) — 8,903

Surface area (sq km) — 1,964,380

% of population living in urban areas — 79%

% of GDP contributed by agriculture – industry – services — 3% – 34% – 63%

Ease of doing business index (1 = best, 180 = lowest) — 60 (2019)

Which is Mexico’s most profitable sectors?

Mexico currently ranks 60 in the world for doing business, and is primarily an export-oriented nation.

The following industries are the most productive for international business in Mexico:

• Oil and Gas
• Manufacturing
• Infrastructure Construction and Development
• Aerospace
• Ports and Port Services

Where the action is for international business in Mexico

International businesses operating in Mexico would do well to consider their export options to other nations. This is especially so in light of the country’s recently updated Free Trade Agreement between Canada and the United States, known as NAFTA or T-MEC in Spanish

Mexico’s main export commodities include:

Commodity — Worth US$ (in billions) — Percentage of Total • Exports

Vehicles — 86 — 21.6

Electronic equipment — 80 — 20.1

Machines, engines and • pumps — 60.3 — 15.2

Oil — 42.2 — 10.6

Medical Technical • Equipment — 14.4 — 3.6

Furniture Lighting Signs — 9.7 — 2.4

Plastics — 8.6 — 2.2

Gems, precious metals • and coins — 7.8 — 2

Iron and Steel products — 6.1 — 1.5

Vegetables — 5.5 — 1.4

What are Mexico’s important events?

Mexico is an active trade show destination that facilitates a variety of national and international businesses, including agriculture, auto, food and beverage, handicrafts and pharmaceuticals. Popular sports are football, boxing and basketball. Mexico’s enchanting land has attracted many tourists to its snow-capped volcanic peaks, mesmerising lagoons and scenic beaches.

As a business locale, Mexico’s dependence on the United States cost it a great deal during the 2008 global financial crisis. However, free trade agreements and positive persistence have helped the country to recover. Its export value was boosted to over US$303 billion annually, as US and Canada continue to act as their long-standing top trade partners. Positive signs attract international businesses to Mexico. A complete market research strategy will help you understand the country and formulate your international expansion strategy.

Read the original article and more information on export strategy and international business opportunities on the Alliance Experts’ website.

Supporting international business in Mexico

Alliance experts is a global network of business development specialists. Its members connect to help companies enter new markets profitably.

Biz Latin Hub is a proud supporter of foreign companies expanding into Latin America and the Caribbean. We provide a full suite of company incorporation and back-office services tailored to support international business in Mexico. Our experienced corporate legal and accounting specialists ensure companies are compliant with local corporate regulations every step of the way.

Get in touch with our team of local and expatriate professionals to receive customized support.

Learn more about our team and specialist expertise.