Mexico In The International Trade

From the time when the North American Free Trade Agreement or NAFTA was implemented in 1994, there was a resurgence of Mexico in the international trade. Trade between the country, Canada and the United States has tripled.



Mexico is regarded as the world’s twelfth biggest economy. Around 90% of trade in Mexico operates under agreements on free trade with over 30 countries. Currently, approximately 90% of exports from Mexico enter Canada and the U.S and around 65% of it's imports are sourced from the 2 nations.



Mexico in the international trade is among the friendliest countries for trading. Among the regions as well as countries with agreements on free trade with Mexico are the European Union, Columbia, Israel, Bolivia, Venezuela, Costa Rica, Chile, Nicaragua, Guatemala, El Salvador, Honduras, Brazil, Argentina, Paraguay, Uruguay, Liechtenstein, Iceland, Japan, Norway and Switzerland.



China and the U.S are the main sources of imports of Mexico. Mexico in the international trade provides first-fate opportunities for U.S companies who are interested in growing into new location or tapping into new markets such as textile, food, beverage and clothing and even other durable products such as electronics, appliances, automobiles and furniture.



In 2000, 31 Mexican states corresponded to the economic arrangement similar to that of China presently; high-volume production through low-cost capital for manufacturing. Many of such manufacturing has however shifted to China. Mexico’s niche at present changed a manufacturing center for product of low to average volumes with high size and complexity. These include network communications, medical equipment and aviation or automotive components.



Mexico isn’t the country with the lowest production cost since it costs no less than 4 times more compared to Chinese labor. Nonetheless the counterbalance lies in shorter delivery time, cheaper shipping and the capacity for individuals of businesses in North America to communicate with facilities for production which are in a similar time zone, which is very much favorable.



Benefits of Mexico in the international trade include:



-Active development and implementation of laws on intellectual property to safeguard complicated ventures subcontracted for production in the country



-Lesser hidden costs. For example, cheaper shipping and minimal payments for inbound duty.



-Wait time for delivery is generally shorter compared to China



-A good number of representatives on site are English speaking or are employed in subsidiaries situated in the U.S. A good number of products from Mexico are warehoused in the U.S.



-Culture wise, Mexicans are sincere and open business individuals. Nonetheless they refrain from directly stating "no"-just like in Chinese culture. Often, "no" could equate to "later" or "maybe." You should put this into consideration when discussing contract terms or asking for particular capabilities from factories and suppliers.



ProMexico is the Mexican Government institution in charge of strengthening Mexico’s participation in the international trade (comercio). With this objective in mind, the institution supports the export activity of companies established in the country and co-ordinates actions to attract foreign direct investment to national territory. ProMexico was established on June 13, 2007, as a sectoral public trust under the Ministry of the Economy, and operates through a network of 25 offices throughout Mexico and more than 27 offices abroad. Visit the website http://www.promexico.gob.mx to know more.