A unique strategic location at the center of your global markets and destinations. Mexico is part and a close partner of both North America and the vast Latin American region. Its vast 11,122 kms coastline connects it, on the Pacific Ocean, with Asia and the West Coast of North- and South-America, and on the Atlantic Ocean, with Europe and Africa, the Caribbean islands and the East Coast of the Americas – all this connectivity supported by a strong road and rail network to the North and port and shipping routes connecting it to the globe beyond.

Your ideal strategic center near your major markets away from Asia.

Competitive costs with a strong manufacturing tradition. The country has a young population of 130 million people with an average age under 29, and with a strong industrial vocation: Mexico has the largest manufacturing sector and the biggest number of engineering graduates in Latin America. Accordingly, manufacturing is the country’s biggest destination of foreign investment, attracted by Mexico's vibrant export opportunities and by its strong and growing labour force and domestic market, with a population around 130 million people with an average age under 29.

Mexico offers a growing market with a highly-skilled and young workforce.

Deep-rooted macroeconomic stability and open trade policies. The country has been a leader in the region with the adoption and solid maintenance since the 1990s of prudent fiscal policies, a stable economy and an open trade regime, all of which are set to continue smoothly whichever party wins in the upcoming presidential elections in June, 2024. Mexico’s open economy ensures duty-free and rules-based access to the most important markets worldwide through its vast network of Free Trade Agreements (FTAs) with 50 countries, which is more than any other nation. Mexico’s unique and strong international trade architecture includes, in addition, mutual investment promotion and protection agreements with 33 countries and regions. These international treaties give preferential access to a large fraction of the globe’s potential consumers.

Global investors’ growing interest in Mexico is a natural response by companies seeking to tap the markets of the world from an ideal location in the Americas.

Governmental incentives. At the National (Federal) level, the Mexican government introduced (Oct 10,2023) accelerated depreciation of 56% to 89% of investments in ten broad sectors of the economy, subject to certain performance and administrative conditions, applicable anywhere in the country for now for one year, plus 25% of all expenses on workers’ training. The Mexican government also grants tax deductions and technology, innovation, and workforce development funding as incentives for certain investments. There are often significant additions to be found at the sub-national level (states and municipalities) in the form of land availability and other fiscal and operational investment.

All levels of government throughout the country are very much of a mind to support and work with foreign companies looking to establish production in Mexico.

NATIONAL

LEGAL FRAMEWORK

The Mexican foreign investment regime is regulated by the Mexican Constitution and international foreign investment treaties; the 2023 Foreign Investments Law ( underscore and linked to the specific LAW); Regulation of the Foreign Investment Law and the Foreign Investment National Registry (underscore and linked to the specific regulation).

INTERNATIONAL TRADE AGREEMENTS

USMCA

The United States-Mexico-Canada Agreement (USMCA) is a free trade agreement between Canada, Mexico, and the United States that entered into force on July 1, 2020. This agreement was the result of a renegotiation conducted 2017-19 aimed at modernising, expanding and strengthening the 25-year-old NAFTA that had been in place and very successfully so since 1994. Bringing the latter into the 21st century, the latter is a benchmark modern high-standard trade agreement, supporting mutually beneficial trade resulting in freer markets, fairer trade, supporting stronger investment in the region and more robust economic growth in North America.

One of the main accomplishments of the treaty is its unique Dispute Settlement Mechanism, established in Chapter 31, of great value to the private sector throughout North America as it offers a legal tool to solve differences and greater confidence to investors. The USMCA’s panel reports are binding, and panel decisions are not affected by domestic political pressures.

WTO, CPTPP and beyond

Mexico is a founding member of the World Trade Organization (WTO) and a member of the Asia-Pacific Economic Cooperation (APEC). Mexico has 13 Free Trade Agreements (FTAs) with 50 countries —including USMCA and FTAs with the European Union, European Free Trade Area, Japan, 10 countries in Latin America, and the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Mexico is also a member of the Pacific Alliance, a trade bloc formed in 2011 by Mexico, Chile, Colombia, and Peru.