Wednesday, 21 Nov 2012
Doing Business in Mexico
There are many opportunities for UK Business in Mexico. We provide a wealth of information and guidance on doing business in Mexico.
Two Doing Business Guides
Opportunities in the market for businesses
FCO Country Updates
Overseas Business Risk information
What are the Opportunities?
With its impressive network of Free Trade Agreements (including North America and the EU) and its strategic location in-between the US and Latin America, Mexico has the potential to act as a springboard into the region as well as being an attractive proposition in its own right.
What's so special about Mexico?
Mexico is a country of huge potential which has demonstrated predictable, stable economic growth. It is a dynamic market and analysts predict that its economy will be the world´s seventh largest by 2050.
It covers an area about the same size as the whole of Western Europe and occupies a strategic global position, being the natural bridge between Latin America to the south and the United States and Canada to the north.
Mexico is the largest trading nation in Latin America and one of the world’s top 15. As the economy has grown so has the demand for imports. UK exports of sophisticated goods and services have grown due to that demand.
Mexico was the first Latin American country to become a member of the Organisation for Economic Co-operation and Development (OECD) and is also a founding member of the World Trade Organization (WTO).
What are the challenges?
Mexico is perceived to be a tough proposition, even for the seasoned exporter, due to high levels of bureaucracy and complicated procedures. In fact, doing business in Mexico is no more difficult than in other emerging markets, and in many cases it is much easier.
The government is actively working to reduce bureaucracy and improve competitiveness, and is driving forward reforms to attract new investment and diversify trade. Naturally, some things are done differently here but, as with all overseas markets, many of the potential pitfalls can be avoided with adequate preparation.
UK Trade & Investment helps companies of all sizes do business in Mexico through a network of international trade teams based in the English regions and devolved administrations. In Mexico, there are dedicated trade & investment teams based in Mexico City, Monterrey, Guadalajara, Tijuana and Villahermosa.
Mexico's Free Trade Agreements Publication
Mexico has free trade agreements with more countries than any other in the world – 12 agreements with 44 countries. Mexico is expected to continue expanding its network of agreements to diversify its export markets and to attract Mexican and foreign enterprises to invest and reap the benefits of joint production in a strategic location.
The EU-Mexico Free Trade Agreement has led to the elimination of all tariffs on EU-origin industrial goods. With no import duties UK exporters can now compete on equal terms with exporters from the USA and Canada.
Although there is no EU free trade agreement with the USA, British companies can take advantage of Mexico’s North American Free Trade Agreement with the USA and Canada (NAFTA). By establishing themselves in Mexico, British companies can use Mexico as a low cost manufacturing base with direct, duty-free access to the largest consumer market in the world, the United States.
Guide to Doing Business in Mexico
UKTI has produced a guide aimed at companies experienced in overseas trade who are new to doing business with Mexico. This guide aims to provide a route map of the way ahead, together with signposts to sources of help.
Researching the market
Market entry and start-up considerations
Best practice and risk management
For information on your sector in Mexico including characteristics of the market, opportunities and key contacts, please check out the latest sector briefings.