Germany has become the third most important trading partner of Mexico
The intensive trade relationship between Germany and Mexico has reached a new peak.
After USA and China, Germany currently ranks on the third place of Mexico’s most important trading partners and overtook Canada and even the EU within the last two years.
Mexico gives access to the largest free-trade zone worldwide
Presenting a trade volume of 23 billion US-Dollar and an export volume of 9,5 billion US-Dollar, the trade-relationship between both nations represents a continuous growing and significant value. In fact, the Mexican market generates access to the largest free trade zone in the world.
Access to profitable markets
Symbolizing a bridge between Atlantic and Pacific, Mexico enables access to large and significant markets to many companies. Located on the border to the United States, the Latin-American country also represents a very important logistic location especially for export-oriented investors. Hence, the US-market can easily be accessed and investors enjoy various benefits such as lower expense in production and transportation.
Free trade as the key for economic expansion
Beside the free trade agreement with Canada and the USA (NAFTA), Mexico focuses on further trading partners. In total Mexico has a lot of trade agreements with over 50 countries worldwide, including tax- and duty-reliefs, among other benefits.
In March 2018 a new contract was signed in Brussels. This contract considers the renovation and further development of the existing free-trade agreement MEFTA, thus enabling duty-free trade in goods between Mexico and Europe.
The revised version of the agreement simplifies the trade significantly in import regulation requirements, bureaucracy and toll. Food’s exports such as pork, flour and cheese are continuously getting more important.
Constant market growth guarantees security for investors
The constant market growth guarantees security for investors. The constant GDP-growth of 2,69% p.a. is representative for the emerging nation which is on the best way to become an industrialized country. Due to the constant market-growth, Mexico has become a save location for investment.
“It´s important for Mexico to discover and to develop new economic sectors. Therefore, it´s indispensable that Germany and Mexico continue their successful trade relationship in the industrial sector “, explains Oliver Knoerich from the German embassy in Mexico, talking about the technology, the industry and the automatization of processes.
Mexico – the paradise of the automotive sector
The significant increase in foreign direct investment in Mexico can be put down to famous car producers such as Audi, Daimler, Volkswagen and BMW. According to Oliver Knoerich, these companies are responsible for the arriving of numerous suppliers.
Thanks to excellent conditions of production an extensive network of foreign companies has established, primarily in the automotive sector. Due to the increase of foreign companies, numerous industrial parks developed, which guarantee not only a just-in-time production but also low logistical expenses.
National legislation guarantees several advantages
An additional reason to invest in the Mexican market is the national legislation. It guarantees dynamic working hours permitting a high performance. Personnel with high qualifications and well-developed work skills is available. The constant growth of education is one of the main factors appreciated by foreign investors.
Take advantage of Mexico´s economic boom!
Contact us!
WMP Consulting Services is an international consulting company specialized in different areas such as location analysis, real estate search, market analysis, business partner search, and supplier development in Mexico.
Finding the right location for your business is the key to success. We can help you find the perfect location for your subsidiary in Mexico, taking into consideration all of your needs and requirements. Further, we offer support in the following areas: contract negotiations, locating the right premises, finding the best, and most competent building contractor. Taking into account all possible opportunities and challenges, together we will develop a market entry strategy specially tailored to the needs of your company. With over 10 years of experience in the Mexican market, we are your trusted partner in Mexico.
Contact: Mr. Finn Neugebauer, neugebauer@wmp.mx
