Mexico is a member of the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC), the G-20, the Organisation for Economic Co-operation and Development (OECD) and the Pacific Alliance, and has 13 free trade agreements with 50 countries. Among these, the USMCA is one of the most important, as it facilitates access to the world’s largest consumer market, the US.
Mexico’s advantages as a production location also lie on the cost side. Real wages in China have more than doubled since 2008, and by around 30% in Brazil and Russia. Mexico is the only G20 country where real wages have fallen, resulting in operating costs that are on average 23% lower than in China.
In the World Bank’s Ease of Doing Business rankings, Mexico ranks 60th, in the top third, and competes well with similar emerging economies such as Indonesia and Vietnam. A comparison of Mexico’s 32 states is also worthwhile when it comes to the availability of local labour, infrastructure or the quality of cooperation with local partners.
Personal contacts are still important for doing business in Mexico. A good place to start is the German Centre Mexico, which can provide important information and establish reliable contacts through its long-standing network.