MEXICO'S STRENGTHS AND ADVANTAGES
Some 25 years ago, Mexico set out to achieve greater economic openness, focused on freeing international trade and attracting investment flows. This policy was supported by an aggressive agenda that included the privatization of government companies.
During this period, Mexico made many changes to its foreign investment law and signed free trade agreements with the world’s leading economies. The country also reached a consistent, solid and stable macroeconomic framework that has brought certainty to investment.
Today, Mexico offers an attractive business environment, legal certainty, one of the world´s largest free trade agreement networks, as well as highly developed economic sectors that offer very competitive costs. Furthermore, the country is developing its infrastructure to turn into a world-class logistics platform and it is working on deregulation to simplify business operations even more.
· Competitive labor costs: Transferring operations to Mexico can lead to savings of close to 90% in labor costs.
· Simplicity of operations: In Mexico, investors only need 13 days and 8 procedures to open a business, and 138 days and 12 procedures to obtain a construction permit.
· Accessibility to large markets: domestic market and NAFTA region (the world’s largest trading bloc); member of the Pacific Alliance; member of the TPP; extensive network of free trade agreements; few procedures for importing and exporting goods.
· Legal certainty for foreign investment.
· Population and human capital: close to 115 million inhabitants, out of which 45 million are part of the workforce.
· Macroeconomic stability.
· Competitive industrial base: especially sectors such as aerospace, automotive, electric-electronic, renewable energies, medical devices, agrifood, mining, creative industries, information technology, etc.
Source: ProMéxico.
FREE TRADE AGREEMENTS
Mexico has a network of 12 free trade agreements with 45 countries, 30 agreements on protection and promotion of investments, and nine economic complementation agreements. Additionally, Mexico is a member of the Trans Pacific Partnership (to be ratified by signatory parties).
