México represents a big opportunity of investment for many foreign countries, throughout time it has shown to have potential to be one of the best places for FDI. According to the World Investment Report published this year by the United Nations Conference on Trade and Development (UNCTAD), México is ranked 14th among the top 20 host economies of 2018-2019. These investments came mainly from the United States, Canada, Spain, Japan and Germany. That year the economic activities that received most of this investment were manufacturing (40.6%), financial services (23.2%) and transportation (9.8%).
Benefits of investing in México:
México is a country with a lot of potential in foreign investment due to its geographic location, it’s diverse ecosystem, which makes it one of the most attractive places in the world, it is considered the eighth most visited country in the world, entering the top 10 best places in the tourism industry. The development of different industries is more reachable thanks to the great variety of natural resources that it has. Investors find it very attractive due to its location and closeness to the United States; which is considered an advantage since negotiations with the US become more accessible and less risky.
The majority of the country’s population is young, which means the workforce becomes less expensive. Despite having a more economic workforce than other places, it is still competitive and efficient enough to match that of the more developed countries.
México is globally known to be the country with the most commercial agreements in the world, being a participant in 30 Agreements for the Promotion and Reciprocal Protection of Investments, 9 Economic Complementation Agreements and 14 Free Trade Agreements, examples of these mentioned are, T-MEC, APEC and TLCUEM. Due to these treaties, the country has commercial relations with 50 countries such as the United States, Canada, Bolivia, Nicaragua, Israel, Chile, etc., these agreements not only help eliminate trade barriers and promote investment opportunities between countries, but also encourage the internationalization of
local products and support the Mexican economy.
Because the Mexican government is open to association with other countries, there are different incentives such as IMMEX that promote foreign investment. This program, for example, allows temporary importation of raw materials and components for the elaboration, repair or transformation of merchandise that must be exported when finalized, companies benefit from this program because they don’t have to pay any type of tax on the importation made, value added tax or countervailing duties, if applicable.
Mexico’s competitiveness:
The main investing countries in Mexico are located in the 10 top places of the world powers, which means that it is a country that, in addition to having a lot to offer to those interested, is considered competitive in the commercial field compared to other countries.
Foreign investment companies in Mexico:
With the recent reactivation of the world economy after the pandemic, the perspectives of integrating a profitable business within the country in the long term can be exponential by applying strategies that allow us to gain an advantage as a host country of foreign direct investment.
At Stratego, we place great importance on economic analysis for making informed business decisions, both at the national and global levels. Our team of economic analysts is dedicated to conducting thorough assessments of Mexico’s economic landscape and the global economic environment. This invaluable insight empowers our clients to make strategic and well-informed decisions in the ever-changing business landscape.
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