Why Mexico?

Strategic location:

  1. Low freight costs.
  2. Manufacturing in Mexico facilitates just in time practices.
  3. 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:

  1. Besides the NAFTA, Mexico has in force 10 agreements with the EU, Japan, Israel and Latin American (41 countries & 1 billion consumers).
  2. 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').
  3. 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:

  1. A.T. Kearney has ranked Mexico as the 8th most attractive destination for FDI.
  2. Improved 11 positions between 2007 and 2010 (2010 A.T. Kearney Foreign Direct Investment Confidence Index).

Competitive costs:

  1. Manufacturing costs to outsource the US market are more competitive in Mexico than in China, India and Brazil ? (Alix Partners, 2009).
  2. 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:

  1. Intellectual Property Rights (covered in the international treaties and the Mexican Institute for Intellectual Property ? IMPI).
  2. Bilateral Protection and Promotion of Foreign Investments (BIT?s).

Population:

  1. Young and highly qualified (130,000 engineers graduate every year).
  2. Competitive labour costs.
  3. 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).
  4. Mexican population is mostly young. This factor can complement the Canadian and U.S. population trends.

Mexican Import Requirements

Mexico's Customs

  1. Link to Mexico’s Customs web page, where you can find information about: Importer's data base, sectoral information, customs agents and brokers.Only in spanish

 

Import Basic Guide (Basic steps to follow in order to ship goods to Mexico) DOWNLOAD

  1. Suggestions to exporters.

  2. General Customs Administrations.

  3. Customs brokers.

  4. Customs Regimes.

  5. Entry of merchandise.

  6. Shipping documents and customs regulations for Exports to Mexico.

  7. Estimated Prices.

  8. Tariffs.

  9. Non tariff regulations and restrictions.

  10. Property rights.

Mexico's Promotion Programs

Promotion of the Manufacturing Industry, maquiladora and Export Services.

  1. This instrument integrates the program for the Promotion and Operation of the Export bonded assembly Plant Industry (Assembles) and Establishes Programs of Temporary Importing to Produce Articles of Export (PITEX).

 

Exporting Sector's Promotion Programs

  1. Federal Govenment support programs to assure inputs and machinery for the export industry (PROSEC).

 

National Export Suppliers

  1. Program to support the establishment of production chains for the exporting industry (PRONEX).

 

Other Support Programs

  1. Foreign Trade Companies (ECEX).
  2. Import tax refund to exporters (DRAWBACK).
  3. Highly Exporting Companies (ALTEX).
  4. Entrepreneurial Development (EDP).

Mexico's Market

Introduction.

  1. Mexico's import profile (View).

 

Relevance of Inputs for the Maquiladora Industry

  1. Federal Govenment support programs to assure inputs and machinery for the export industry (View).

Resources for Exporters

Exporting to Mexico, DFAIT

  1. Source of information that includes:
    1. Market Summaries
    2. Market Profiles
    3. Business Guides
    4. Business Tools
  2. Please visit http://www.dfait-maeci.gc.ca for more information.

     

Export Development Canada (EDC)

  1. Export Development Canada (EDC) is Canada's export credit agency, offering innovative financing, insurance and risk management solutions to help Canadian exporters and investors expand their international business
  2. Every year, EDC's knowledge and partnerships are used by more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide. Approximately 80 per cent of EDC's customers are small and medium-sized businesses
  3. EDC is a Crown corporation wholly owned by the Government of Canada. The corporation is financially self-sustaining and operates on commercial principles. EDC is a recognized leader in financial reporting, economic analysis and has been named one of Canada's Top 100 Employers for nine consecutive years
  4. Please visit http://www.edc.ca for more information.

     

NORTHSTAR Trade Finance

  1. NORTHSTAR Trade Finance Inc. was created to support Canadian exporters by offering financing to credit worthy buyers of eligible Canadian goods and services
  2. NORTHSTAR Trade Finance Inc. brings together the export strengths of the government of Canada through Export Development Canada (EDC) and Western Economic Diversification, the provincial government of British Columbia, and the private sector through BMO Bank of Montreal, the Royal Bank of Canada, HSBC Bank Canada,and National Bank of Canada
  3. Please visit http://www.northstar.ca for more information.

     

Canadian Commercial Corporation (CCC)

  1. The Canadian Commercial Corporation (CCC) is a Crown corporation of the Government of Canada and acts as Canada's international contracting and procurement agency. As a parent Crown corporation under Schedule III Part I of the Financial Administration Act, CCC reports to Parliament through the Minister of International Trade
  2. Through its wide-ranging experience in delivering international contracting and procurement services to foreign government buyers, CCC ensures secure and transparent access to Canada’s export capabilities
  3. Please visit http://www.ccc.ca for more information.

     

Canadian Manufacturers and Exporters (CME)

  1. Canadian Manufacturers & Exporters (CME) is Canada's largest industry and trade association. We represent businesses in all sectors of manufacturing and exporting activity across Canada. Our mandate is to promote the competitiveness of Canadian manufacturers and the success of Canada's goods and services exporters in markets around the world
  2. We focus on the issues that are most critical to our members - manufacturing competitiveness, US business opportunities, international markets, people and skills, energy and the environment. Their challenges are our priorities
  3. Please visit http:\\www.cme-mec.ca for more information.

     

Canada’s Export E-Business Portal

  1. Our mission is to help Canadian companies involved with the exports of goods and services reap the benefits of Internet E-Commerce and to provide innovative Internet business-to-business applications via our web site, which can help expand global reach and maximize export sales
  2. Please visit http:\\www.export.ca for more information.

     

Export Canada

  1. ExportCanada.com is part of the Export Trading Network, a global trading platform designed to support and assist companies participating in international trade leverage the power of the Internet to find new markets, reach new trading partners, and conduct market research
  2. Please visit http:\\www.exportcanada.com for more information.

     

Export and Import Controls Bureau (TPI)

  1. The Export and Import Controls Bureau (TPI) is responsible for administering the Export and Import Permits Act (EIPA) which was first enacted in 1947. The EIPA delegates to the Minister of Foreign Affairs (referred to as "the Minister") wide discretionary powers to control the flow of goods contained in specified lists provided for under the Act. The Minister for International Trade provides policy direction in most areas involving market access and trade policy
  2. Please visit http:\\www.exportcanada.com for more information.

     

Canada Export Centre

  1. Canada Export Centre's customized services and business development tools can help you to establish trade relationships with the companies that best suit your needs. Clients rely on the Canada Export Centre name, international network and reputation to lend credibility, to endorse their companies and your capabilities, and assist you in engaging the prospects that express interest in doing business with you
  2. Please visit http://www.canadaexportcentre.net for more information.