Mexico Business Opportunities

Mexico has a free market economy in the trillion-dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports.

Key Industries:	Textiles, Clothing, Motor Vehicles, Parts, Chemicals, Mining, Iron and Steel, Petroleum, Tobacco, Food and Beverages, Consumer Durables, Tourism
Key Imports:	Agricultural Machinery, Car Parts for Assembly, Electrical Equipment, Steel Mill Products, Metalworking Machines, Aircraft and Aircraft Parts, Repair Parts for Motor Vehicles
Key Exports:	Vegetables, Coffee, Cotton, Fruits, Silver, Oil and Oil Products, Manufactured Goods

Trade Environment

In 2006, the Country’s leading markets for exports were U.S. 84.7%, Canada 2.1%, and Spain 1.3%. Its leading suppliers were U.S. 50.8%, China 9.5%, Japan 6.0 % and South Korea 4.2 %.

Mexico has twelve free trade agreements with over 40 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of its trade under free trade agreements. Asian cash is coming into Mexico. Companies from across the Pacific use Mexican manufacturing as a forward base. Mexico is a key member of the North American Free Trade Agreement, NAFTA, which includes the U.S. and Canada.

Business and Market Sector Opportunities

Construction • Manufacturing • Transportation • Telecommunications • Retail Automotive • Aviation • Mining • Oil and Gas • Information Technology • Mining Tourism

Economic Background and Situation

Per capita income is one-fourth that of the US; income distribution remains unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries. During his first year in office, CALDERON administration was able to garner support from the opposition and pass a pension and a fiscal reform. Many economic challenges include the need to upgrade infrastructure, modernize labor laws, and allow private investment in the energy sector.

Additional Resources:

American Chamber of Commerce Mexico

NAFTA

Latin America Economics

Successful Market Economies in Latin America

Free Trade Agreements

South America Information

South America and Capitals

Information Resources

Latin American Chambers of Commerce

Mexico Fast Facts
Capital:	Mexico City
Key Cities:	Guadalajara, Monterrey
Population	106.3 million (2007 E)
GDP Growth %	2.6 (‘08 E) 3.0 (‘09 F)
GDP	893.6 billion US$
GDP per Capita	8,405 US$
Inflation Rate Change (%)	3.6 (’08 E/’09 F)
Exports	312.5 (’09 F) billion US$
Imports	331.4 (’09 F) billion US$
Exchange Rate Local Currency-US$	10.90 (’09 F)
E = Estimate F = Forecast