Opportunities for International Business in Mexico

Person dressed for Day of the Dead celebration

Mexico is a celebration of colour, variety and ancient tradition.

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 nearly130 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?

City in Mexico

Mexico offers a varied platter of cherished historical sites, enchanting terrain, and unique cultural and political influences.

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 South Pacific. We provide a full suite of market entry 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 at [email protected] to receive customized support.

Learn more about our team and specialist expertise.

Infographic: 6 steps to forming an international business in Mexico

Receive the latest news and advice about expanding your business globally.


Subscribe to our newsletter to receive the latest business news and advice about entity formation, legal entity compliance, accounting, back office and fiscal requirements.

  • This field is for validation purposes and should be left unchanged.

Marketing permission: By submitting this form, I give my consent for Biz Latin Hub to be in contact with me via email using the information that I have provided in this form and for the purpose of providing me updates about doing business, entity formation, legal entity compliance, accounting, back office services, PEO and/or for marketing purposes.

What to expect: If you wish to withdraw your consent and stop hearing from us, please simply click the unsubscribe link at the bottom of any email that we send or contact us at [email protected]. We value and respect your personal data and will do the utmost to protect it. To view our privacy policy, please visit the Biz Latin Hub website. By submitting this form, you agree that we may process and use your information in accordance with the stated terms and conditions.

Tags: Business | Expats | Investment

Categories: Mexico

Pin It on Pinterest

Share This

Share This

Share this post with a friend or colleague!