| Since the implementation of NAFTA (North American | | | | components (data and statistics adapted from |
| Free Trade Agreement) in 1994, trade between | | | | Wikipedia.com) |
| Mexico, the United States, and Canada has tripled. | | | | Mexico is not the lowest cost country for production |
| Mexico is considered the 12th largest economy in the | | | | (at least four times higher for labor than China). |
| world. Approximately 90% of Mexican trade is | | | | However, the offset in delivery wait time, lower |
| operating under free trade agreements with over 30 | | | | shipping costs, and the ability for North American |
| countries. Today, almost 90% of Mexican exports | | | | business people to speak with production facilities in |
| enter the United States and Canada and | | | | the same time zone, is very favorable. |
| approximately 65% of its imports come from these | | | | Benefits to trade with Mexico: |
| two countries. (Statistics and details referenced from | | | | - Mexico is actively developing and utilizing secured |
| Wikipedia.com) | | | | intellectual property laws to protect highly sophisticated |
| Mexico is one of the most trade friendly countries | | | | projects outsourced for production in Mexico. |
| around the world. Listed here are some of the regions | | | | - Working with Mexico presents fewer hidden costs |
| and countries engaged in free trade agreements with | | | | (lower shipping costs, minimal inbound duty payments). |
| Mexico: | | | | - Delivery wait time is generally lower than China. |
| The European Union, Israel, Columbia, Venezuela, | | | | - Many English speaking representatives exist on site |
| Bolivia, Costa Rica, Nicaragua, Chile, El Salvador, | | | | or work in USA based subsidiaries (many Mexican |
| Guatemala, Honduras, Argentina, Brazil, Uruguay, | | | | products are warehoused in USA facilities). |
| Paraguay, Iceland, Liechtenstein, Norway, Switzerland, | | | | - Culturally, Mexicans are open and honest business |
| and Japan. | | | | people. However, much like the Chinese culture, |
| Mexico imports primarily from the USA and China. This | | | | Mexicans avoid directly saying "no". They often see |
| offers excellent export opportunities for companies in | | | | the word as direct and pushy. More often than not, a |
| the USA interested in locating new markets for food, | | | | "no" can mean "maybe" or "later". Keep this in mind |
| beverage, textile, clothing, and other consumer durables | | | | when negotiating contract terms or requesting certain |
| products (automobiles, appliances, furniture, and | | | | capabilities from suppliers and factories. (adapted from |
| electronics). | | | | executiveplant.com, Mexican business etiquette). |
| In 2000, the 31 states of Mexico represented the | | | | Some of Mexico's highest commodity imports: |
| economic position of what China is today; a low-cost | | | | computer accessories, passenger cars (new and |
| manufacturing capital for high-volume product | | | | used), semiconductors, engine parts, and plastics. |
| production. Much like other countries, most of that | | | | (Compiled from the US census bureau trade division) |
| manufacturing has now moved to China. The niche for | | | | Some of Mexico's highest commodity exports: |
| Mexico today has changed to a center for | | | | computers, apparel and household goods, passenger |
| manufacturing low to medium volume products with | | | | cars, video equipment, and wine & related |
| high complexity and size, such as medical equipment, | | | | products. |
| network communications, and automotive/aviation | | | | |