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REASONS TO
INVEST IN MEXICO

With a population of almost 130 million, a strategic location, and a vast cultural diversity and natural resources, Mexico is positioned among the world's 15 most important economies.

It has an area of approximately 2 million square kilometers, ranking 14th in the world. Mexico is a federal republic divided into 32 states and 2,456 municipalities.

It has a privileged geographical location. Neighboring to the north with the United States -the world's largest market -, the border with this country is more than 3,100 kilometers long and has 56 border crossings. To the south, it borders with Guatemala and Belize, which represent the gateway to Central America, South America, and the Caribbean.

Its extensive coastline on the Atlantic and Pacific Oceans (11,122 kilometers) serves as a natural bridge connecting the Asia-Pacific region.

Mexico is open to trade and is one of the countries with the largest number of international trade agreements. Currently, it has 13 Free Trade Agreements (FTAs) with 50 countries, 32 Reciprocal Investment Promotion and Protection Agreements (RIPPAs) with 33 countries, and nine Partial Scope Agreements (PSAs) within the framework of the Latin American Integration Association (ALADI).

The Agreement between the United States of America, the United Mexican States, and Canada, commonly known as the United States–Mexico–Canada Agreement (USMCA). Came into effect on July 1st, 2020 and replaced the North American Free Trade Agreement (NAFTA), in place since 1994.

The USMCA is a central element of Mexico's trade policy. It establishes an institutional framework that provides legal certainty to investors, entrepreneurs, and consumers in North America, as it modernizes and expands the rules of trade in goods and services in the region.

One of the main accomplishments of the treaty is to maintain free trade for all originating goods. New disciplines are also introduced for the marketing of remanufactured goods in the region; the certification scheme and the verification procedure are modernized to make it more expeditious.

The Free Trade Agreement between Mexico and the European Union (EU-Mexico FTA) came into effect in July 2000 with 15 member countries from the European region. This treaty governs free trade relations between advanced European nations and Mexico, thus constituting a trade agreement with the world's largest economic block (currently consisting of 28 countries). In June 2016, it began a modernization process to adapt to the new international economic reality, which includes technological transformations in trade. It is expected to come into effect in 2021.
The Trans-Pacific Integral and Progressive Agreement for Trans-Pacific Partnership (CPTPP 11), with 11 participating countries: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The Pacific Alliance began on April 28, 2011 as a regional integration initiative comprised of Chile, Colombia, Mexico and Peru, within the framework of the Latin American Pacific Basin Initiative. The objective of the Pacific Alliance is to form an area of deep integration that boosts further growth, development and competitiveness of the economies it comprises, by progressively seeking free movement of goods, services, capital and people; as well as becoming a platform for economic and trade integration with a projection towards the Asia-Pacific region.
The Gross Domestic Product (GDP) in Mexico registered 18,364,393 million pesos during the fourth quarter of 2019.

The primary activities’ GDP registered 595,887 million pesos, secondary activities 5,249,195 million pesos, and tertiary activities 11,699,255 million pesos.

Investment flows were mainly channeled to the manufacturing industry, registering 15,540.7 million dollars, representing 47.2%. Financial services and insurance followed it with 5,028.7 million dollars (15.3%), trade with 3,193 million dollars (9.7%), mass media information with 1,802.1 million dollars (5.5%), mining with 1,801.8 million dollars (5.5%), generation of electricity, water and gas with 1,257.1 million dollars (3.8%), and the remaining sectors captured 4,297.9 million dollars (13%).




WHY INVEST IN MEXICO

Luis Manuel Hernández, National President of the Maquiladora
and Export Manufacturing Industry (index)



INFRASTRUCTURE

Mexico's geographical position gives it access to the main international markets; furthermore, it allows companies to reduce time and costs in logistics.




PORTS

The port system in Mexico comprises 102 ports and 15 terminals, 58 on the Pacific coast, and 59 on the Gulf of Mexico and the Caribbean coast. Of this total, 69 carry out high altitude and cabotage traffic and 48 only cabotage traffic.

Ports are connected to the logistic infrastructure on which the logistics and supply chains are deployed in the area.


AIRPORTS

The Mexican Airport System is safe and competitive; it consists of 77 airports, 64 of which are international and 13 national.

Due to its activity, Mexico City's Benito Juárez International Airport is among the first 15 air terminals globally and is number one in Latin America.

According to the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transporte), Mexico has a little more than 400,000 kilometers of highways, ranging from toll roads to breaches; 27,000 kilometers of railroads, 77 airports and 117 ports.


BORDER CROSSINGS

Along the U.S.-Mexico border, there are 60 border ports - 4 closed -, 23 are crossings (land border), and 37 are bridges (river border). Daily, about 452,000 vehicles cross the border, and 30,000 of them are cargo trucks.

Source: SRE, Year: 2018


RAILROAD

The railway infrastructure in Mexico comprises 17,360 kilometers of primary and secondary tracks under concession, 4,474 kilometers of auxiliary tracks (yards and slopes), and 1,555 kilometers of private tracks, which together add up to a total of 23,389 kilometers of operated lines.

The concessionaires and assignees that provide the cargo transportation service are: Kansas City Southern de Mexico (KCSM), Ferrocarril Mexicano (Ferromex), Ferrosur (Ferrosur), Ferrocarril y Terminal del Valle de Mexico (Ferrovalle), Línea Coahuila Durango (LCD), Ferrocarril del Istmo de Tehuantepec (FIT) and Administradora de la Vía Corta Tijuana-Tecate (Admicarga).





MAIN OEM´S IN MEXICO







STRATEGIC
SECTORS







AEROSPACE

Mexico is a competitive manufacturing platform, developed in less than ten years, positioning itself in 12th place in this industry's global ranking. From 2004 to 2019, this sector in Mexico presented an average growth of 14% per year.

By the end of 2019, there were 368 industrial facilities, of which 318 were manufacturing, 43 were repair and maintenance facilities, and 40 were design and engineering facilities. Some of the global companies established in Mexico are Airbus, Bombardier Aeroespace, General Electric, Eaton Aeroespace, GKN, Honeywell Aeroespace, Safran Group, among others.

Products and services are manufactured in the country such as propulsion system components, aerostructures, aircraft interiors, landing system components, electrical and electronic systems, precision machining, engineering and services, MRO services, among others.
In terms of exports, 9,682 million dollars were exported, making it the sixth-largest exporter to the United States.

This industry generates more than 60,000 jobs and is present in 19 of Mexico's 32 states.






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GLOBAL
COMPETITIVENESS

In 2019, Mexico ranked 60th out of 190 countries that were evaluated -in the Doing Business 2020- to measure the ease of doing business. Mexico is the second best-evaluated country in Latin America, surpassing economies like India, Vietnam, South Africa, Luxembourg, and Greece…


HUMAN
TALENT

As of the first quarter of 2020, Mexico’s total population registered 126,661,703 inhabitants, of which 51.7% are women, and 48.3% are men. The Mexican population is mostly young. The working-age population (15 years and older) amounts to 95,784,628 people…


INNOVATION
AND TECHNO

The Global Innovation Index 2020, developed by Johnson-Cornet University, INSEAD and the World Intellectual Property Organization (WIPO), places Mexico in second place in Latin America and the Caribbean; and in position 55 out of 131 at the global level….


QUALITY
OF LIFE

Availability and use of ICTs
There are 80.6 million Internet users in Mexico, representing 70.1% of the population aged six and older. 51.6% are women, and 48.4% are men.
The three primary means of connecting users to the Internet in 2019 were: smartphones with 95.3%, laptop with 33.2%, and desktop with 28.9%...






SELECT A STATE












AGUASCALIENTES

Aguascalientes is located in the center of Mexico. It has an area of 5,682 km², which represents 0.29% of the national territory.

More info

AGUASCALIENTES

CHIHUAHUA

COAHUILA

GUANAJUATO

QUERETARO

NUEVO LEON

SAN LUIS POTOSI

TAMAULIPAS





REFERENCE
SOURCES

+ Airports and Auxiliary Services
+ National Chemical Industry Association (Asociación Nacional de la Industria Química)
+ World Bank. Doing Business
+ Mexican Federation of the Aerospace Industry (Federación Mexicana de la Industria Aeroespacial)
+ World Economic Forum
+ Government of Mexico
+ National Auto Parts Industry (Industria Nacional de Autopartes)
+ National Institute of Statistics and Geography (INEGI)
+ World Intellectual Property Organization (WIPO)
+ Organization for Economic Cooperation and Development (OECD)
+ Ministry of Public Education (Secretaría de Educación Pública)
+ Ministry of the Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales)
+ Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores)
+ Ministry of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social)
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