Breaking News
Due to the elimination by the U.S. Congress of the cross-border trucking pilot program, Mexico has decided to place duties on 90 U.S. products. This retaliatory measure is their prerogative under NAFTA rules, and came into effect on March 19.
Please click here to consult the list to find all the products affected, and their corresponding duty rates.
MEXICO - A Snap Shot (2008 est.)
Covering almost 1.2 million square miles, Mexico is one of the largest countries in Latin America. Its principle cities are: Mexico City, Monterrey, Guadalajara and Tijuana, all cities where the U. S. Commercial Service maintains offices to help American firms enter the Mexican market.
| Population: 110 million |
| GDP per capita: $9,100 |
| 74 percent urban; under 20: 44% |
| Wealthy/Upper Middle: 23% |
| Middle Class: 37% |
| Poor: 40% |
| Literacy Rate: 91% |
| GDP Composition: Services 62.2%, Industry 34.1%, Agriculture 3,7% |
The United States Contributes to Economic Prosperity in Mexico
Please click here for more figures that show how the United States contributes to economic prosperity in Mexico.
Business Climate
Mexico’s size and diversity are often under-appreciated by U.S.
exporters. It can be difficult to find a single distributor
or agent to cover this vast market.
The Mexican legal system differs in many significant ways from
the U.S. system. U.S. firms should consult with
competent legal counsel before entering into any business
agreements with Mexican partners. The U.S. Commercial
Service can provide a list of attorneys with experience in
dealing with U.S. corporate clients through the Business Service Provider Program.
The banking system in Mexico has shown some signs of growth after
years of stagnation, but interest rates remain relatively
high. In particular, small and medium enterprises (SMEs)
find it difficult to obtain financing at reasonable rates despite
Mexican Government efforts to increase capital for the
SME's. U.S. companies need to conduct thorough due
diligence before entering into business with a Mexican firm, and
should be conservative in extending credit and alert to payment
delays. As one element in a prudent due diligence process,
the U.S. Commercial Service in Mexico can conduct background
checks on potential Mexican partners.
Mexican customs regulations, product standards and labor laws may entail pitfalls for U.S. companies. U.S. Embassy commercial, economic, agricultural and labor attachés are available to counsel firms with respect to regulations that affect their particular export product or business interest. Please be aware that, everything takes more time to accomplish in Mexico than what U.S. companies are used to. Patience is definitely a virtue.
How to Do Business in Mexico
Please follow these links for more details on doing business in Mexico:
- Standards and Technical Regulations
- Financing U.S. Exports
- Logistics Solutions
- Getting Paid by Your Mexican Buyer
Security Information for U.S. Firms
Given continuing inquiries on Mexico's security situation as it affects U.S. business activity in this country, we wish to call readers attention to the U.S. State Department Travel Alert for U.S. citizens visiting and living in Mexico.
Mexican Business/Social Customs
|
Mexico has its own customs |
Indirectness - difficulty in saying "no" |
|
Importance of establishing personal relationships |
Push for easy credit terms - be careful |
| Socialize: Breakfast, Lunch, Dinner! |
Follow up quickly with your Mexican partner there is lots of competition |
| Time is flexible | Use a qualified interpreter if needed |
| Patience pays off | Keep in contact: visit or phone |
| Physical contact: "un abrazo" | Prefer to communicate other than via e-mail |
Business Solutions Using Commercial Service Mexico Programs
The U.S. Commercial Service in Mexico offers a great variety of services to help American companies with every step of the export process. Click here to access our full range services.