THE NAFTA OFFICE OF MEXICO IN CANADA
 
 

WHY MEXICO?

MEXICAN IMPORT REQUIREMENTS

MEXICO´S PROMOTION PROGRAMS

MEXICO´S MARKET

RESOURCES FOR EXPORTERS

RELATED LINKS
Presidencia
PROMEXICO
IFAI
NAFTANOW

 
WHY MEXICO ?

  • Strategic location:
    • Low freight costs.
    • Manufacturing in Mexico facilitates “just – in – time” practices.
    • Door to door deliveries in less than a week, compared to China (where it can take up to 6 weeks to reach the port of L.A.).
  • One of the most open countries in the World:
    • Besides the NAFTA, Mexico has in force 10 agreements with the EU, Japan, Israel and Latin American (41 countries & 1 billion consumers).
    • For non – partner countries, MFN duties will be reduced from 10.4% to 4.3% in 2013; also paperwork will be reduced and substituted by electronic processes (“single window’).
    • This strategy will allow Mexico to be considered as a relevant platform to produce and to export to other countries.
  • Attractive destination for Foreign Direct Investment:
    • A.T. Kearney has ranked Mexico as the 8th most attractive destination for FDI.
    • Improved 11 positions between 2007 and 2010 (2010 A.T. Kearney Foreign Direct Investment Confidence Index).
  • Competitive costs:
    • Manufacturing costs to outsource the US market are more competitive in Mexico than in China, India and Brazil – (Alix Partners, 2009).
    • Mexico has a business average cost advantage of 20.5% lower relative to developed countries like the US (KPGM, 2008).
  • A legal framework that grants certainty:
    • Intellectual Property Rights (covered in the international treaties and the Mexican Institute for Intellectual Property – IMPI).
    • Bilateral Protection and Promotion of Foreign Investments (BIT’s).
  • Population:
    • Young and highly qualified (130,000 engineers graduate every year).
    • Competitive labour costs.
    • Domestic market is also very attractive to foreign companies: 117 million of consumers and per capita income is more than twice that of China and four times that of India (CIC, 2010).
    • Mexican population is mostly young. This factor can complement the Canadian and U.S. population trends.

 

 
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Report Mexico-Canada Trade Statistics Annual 2016
Visit our Trade Statistics Section.
Regarding the Mexico-Canada trade, trade flows increased 0.9%, amounting USD$34.6 billion. This value represents a bilateral trade increase of 755% in the NAFTA era, which also translates as an average annual growth rate of 9.8% between 1993 and 2016, the highest within the region.