How safe is it to sell in Mexico?

There are many advantages in doing business in Mexico for example lower wages for skilled workers and lower transportation costs because of the proximity with the US and Canada, something that countries like India or China don’t have.

Mexico is part of USMCA a trade agreement with the US and Canada that eliminates tariffs and simplifies the overall process for businesses to happen between these three countries.

USMCA is the treaty that substituted NAFTA and there were worries about how it would impact the economy in the region, but Mexico is still a major player in the western hemisphere showing a resilient economic environment.

The Mexican market is highly sensitive to economic changes in the US because of the proximity between the two countries and this plays both in favor and against, however, the Mexican economy has potential and investors shouldn’t ignore this.

There are disadvantages as Mexico still struggles with issues such as corruption, poverty, crime, and monopolies, but the upside of this is that it is a country with a formidable workforce that provides cost-effective skills in all industries.

It is important to remember that Mexico is an export-driven economy with very good growth potential as it benefits from stronger global demand. For example, the automotive industry is known worldwide and three of the major brands in the world operate in the country.

Sachs’ MIST economies list Mexico, Indonesia, South Korea, and Turkey. Corruption is one of the most important problems because it is widely spread among government officials, and it adds about 2 to 10% to the cost of consumer goods and services.

Overall, we can say that the advantages surpass the disadvantages, and selling in Mexico is a wise choice to expand your business in a country where e-commerce experienced impressive growth during the pandemic.

It is also a good idea to get a good Mexican partner to look after your mutual business interests on-site. Keep in mind that trade treaties between both countries offer protections and regulatory frameworks that make business safer.

Don't underestimate the opportunities offered by the neighborhood between Mexico and the United States. Hiring a local consulting firm can help US businesspersons to turn disadvantages into opportunities.

Learn more about 3PL Logistics services in Mexico here.