Magazine article Screen International

Doing Business in Mexico: Trade and Export Guide

Magazine article Screen International

Doing Business in Mexico: Trade and Export Guide

Article excerpt

Mexico export overview

In 2014 trade between the UK and Mexico was worth USD 32 billion. Many large UK companies operate in Mexico, including HSBC, GlaxoSmithKline, AstraZeneca, BAT and the Intercontinental Hotel Group.

Incentives for UK companies exporting to Mexico include:

* about the same size as the whole of Western Europe with a population of over 120 million

* Mexico and the EU have a free trade and a double taxation agreement

* largest economy in Latin America, after Brazil

Strengths of the Mexican market include:

* free trade access to the US market from Mexico under the North American Free Trade Agreement (NAFTA)

* first Latin American member of the Organisation for Economic Co-operation and Development (OECD)

* more free trade agreements than any other country - 11 agreements covering 44 countries with a potential market access of up to 60% of the world's GDP

Challenges

Challenges when doing business in or with Mexico include:

* open and competitive market, so be sure of your products USPs

* takes time to build and maintain relationships with clients and distributors

* language barriers mean that interpreters may be required

Start up considerations

The most common forms of operation in Mexico are:

* supply chain operations

* representative offices

* joint ventures

* shelter operations

* subcontracted manufacturing

* assistance from Mexican federal and state governments

You should seek legal advice as the tax and legal obligations of each business structure can differ. …

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