Through its extensive free trade agreements and decades of work in encouraging foreign direct investment in its economy, Mexico is truly a global country. However, manufacturers looking to launch an operation in Mexico and build networks with local suppliers will find that an understanding of the local business culture can be a powerful asset. Some … Continued
Important considerations when forming a legal entity in Mexico A strong foundation is important for any new business, but it can be more challenging to accomplish when launching a legal entity in another country. To do business in Mexico, it’s essential to navigate a range of regulations and meet requirements set by numerous federal and … Continued
The Authorized Economic Operator program (known in Mexico as OEA) is a voluntary program created to strengthen and secure the international trade supply chain between Customs and the private sector. With OEA certification, manufacturers can streamline their cross-country shipping, as Authorized Economic Operators have met specific requirements that allow them to be examined at the … Continued
Private equity firms are among the many organizations taking steps to move more manufacturing into Mexico as a part of today’s nearshoring resurgence. Data from the Association for Private Capital Investment in Latin America, as reported by The Wall Street Journal, reveals that private investment in Mexico, including venture capital and private equity, reached $3.4 … Continued
Incentivizing foreign investment in Mexico is a priority for many Mexican states, as the economic development this brings drives job growth and infrastructure investments throughout the country. Economic development support is primarily driven by the private sector and Mexico’s state governments. In some cases, economic development agencies coordinate the region’s organizations and interests to ensure … Continued
Coahuila, strategically positioned along Mexico’s northern border, continues to attract manufacturers, particularly through its maquiladora operations. These operations enable companies to leverage Mexico’s skilled labor force and competitive manufacturing costs for duty-free production intended for export. With key automotive giants like GM and Fiat Chrysler firmly established in cities such as Saltillo and Ramos Arizpe, … Continued
When considering what to know when nearshoring in Mexico, it’s crucial to understand the comprehensive landscape of industrial health and safety regulations. Nearshoring offers numerous advantages, including proximity to major markets like the United States, competitive labor costs, and an established manufacturing infrastructure. However, companies must navigate Mexico’s Federal Labor Law and Social Security Law, … Continued
I recent years, nearshoring has become an increasingly attractive option for manufacturers seeking to more strategically and cost-effectively reach global customers. Now the global COVID-19 pandemic, coming hot on the heels of trade uncertainty due to tariffs and newly negotiated free trade agreements, has thrust the need for a diversified global footprint into new focus. A July 2020 report from … Continued
Querétaro exemplifies many of the advantages of manufacturing in Mexico. From cost benefits to highly skilled workers, this small state in north-central Mexico has much to offer. In fact, foreign firms invested more than $1 billion in Querétaro in 2019 alone, much of it in manufacturing. Wondering what Querétaro might offer you? Below, we dive … Continued
After several years of discussion and negotiation, the U.S.-Mexico-Canada Agreement (USMCA) officially replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020. The new free trade agreement brings with it a host of changes that will impact manufacturers across numerous industries, both those already operating in Mexico and those considering manufacturing here for its … Continued
