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Doing Business in Mexico
2011
MEXICO – A SNAP SHOT
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Population: 112,322,727 million
GDP per capita: $13,200 (est. 2009)
Under 20:
44 %
Literacy Rate: 91 %
Urban:
77 %
23%
Wealthy/Upper Middle: 23%
Middle Class: 37%
Poor:
40%
37%
Poor
40%
Middle
Class
Wealthy /
Upper
Class
Why Mexico?
Location / Access to Goods/Services/Market in U.S.
Size, Diversify, and Vast Market
Shared Culture: Western, Hispanic
Manufacturing base in various sectors
Stronger legal protections
Politically stable
Macroeconomic stability
Safety & Security in Mexico:
A Changing Environment
 The changing security environment in Mexico presents challenges for
U.S. companies
 Border cities are particularly vulnerable, such as Nuevo Laredo, Juarez,
Reynosa, Matamoros, and Tijuana
 Businesses in Mexico are investing more in security for their personnel,
facilities
 Visitors need to use common sense and be aware
 State Department Website for Travel Advisories:
http://travel.state.gov/travel
Mexico – US Trade
Mexico is the United States’ 3rd largest trading partner
Mexico is the 2nd destination of all U.S. exports
Mexico accounts for roughly 1/8 of all U.S. exports
22 American states depend on Mexico as their first or
second destination for exports
One billion/day in two way trade
The impact of NAFTA
 World’s largest free trade area: 442.4 million people; $15.4 trillion
GDP
 No tariffs on U.S. exports to Mexico (except current dispute)
 It clarifies and simplifies rules of trade
 Institution of Dispute Resolution Process - Trucking is Major
Issue
 U.S.-Mexico trade increased 317%: from $88 billion in 1993 to
$367 billion in 2008
 Trade has grown faster than the infrastructure that handles it
 Mutual Recognition Agreements for testing/certification in
some sectors
MARKET
CHALLENGES
MEXICAN BUSINESS
CULTURE
Understanding cultural
differences can make or
break successful business
deals.
DRESS CODE
Formal
Men:
suits & ties
Women:
2 piece set / dress, skirts
Except for use in a beach
resort, shorts do not enter
into the dress code anywhere
LEADING SECTORS/OPPORTUNITIES
Agribusiness Sector
Hotel and Restaurant Equipment
Airport and Ground Support
Equipment
Housing and Construction
Automotive Parts and Supplies
Internet and IT Services
Education and Training Services
Packaging Equipment
Energy Sector
Security and Safety Equipment
Environmental Sector
Telecommunications Equipment
Franchising Sector
Transportation and Infrastructure
Equipment
Market Entry Strategies
 The best strategy to enter the Mexican market is to find a local representative
or distributor. With this, buyers feel secure that initial training, spare parts
and service will be provided.
 Due to regional concentration throughout Mexico, representation locally will
yield better results than a single, nation-wide distributor.
 Price is important, but not necessarily the deciding factor.
 Be prepared to provide brochures, catalogs, and printed materials in Spanish.
Keep websites international-user-friendly.
THANK YOU
State of North Carolina Mexico Office
LAURA CAMBEROS
Trade Representative
52-55-1085-7208
[email protected]