As a neighboring country of the U.S. and member of NAFTA, Mexico is a natural market for U.S. exporters. Though it's close and familiar to us, it is still a foreign market, meaning that there are many things different from how we do business in the United States. This section aims to assist you in doing business in the huge Mexican market. You will find information within about logistics and customs, Mexican standards and regulations, payment terms and issues of a cross-cultural nature. Also included are relevant economic statistics, frequently asked questions about financing and information on taking security precautions when planning your next trip to Mexico.

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%

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.     

Standards and Technical Regulations

Standards and Technical Regulations
Use this section as a primer to familiarize yourself with the Mexican Standards and Technical Regulations that may apply to your product(s).

Financing U.S. Exports

Financing U.S. Exports
Become familiar with the various government programs available to help your company finance its export transactions, and give it the capital to carry out its export operations. While there is no "free" money offered by the federal government to start an export business, there are federal grants offered to help U.S. businesses fund export activities, research markets, create partnerships and conduct training.

Logistics Solutions

Logistics Solutions
When shipping a product overseas, the exporter must be aware and ensure that the merchandise is: Packed correctly so that it arrives in good condition; Labeled correctly to ensure that the goods are handled properly and arrive on time at the right place; Documented correctly to meet U.S. and Mexican government requirements, as well as Proper collection standards; and Insured against damage, loss, pilferage and delay.

Getting Paid by Your Mexican Buyer

Getting Paid by Your Mexican Buyer
Learn about prudent credit practices and various payment mechanisms commonly used in international business transactions.

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.

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.

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.