How to Export to Mexico ?
Export to Mexico : Mexico is the 15th largest economy in the world. Mexico’s economic growth depends on oil and trade with countries like America. Mexico’s economy is at $ 1.1 trillion and is the second largest economy in Latin America. Economic reforms in Mexico are on the rise. The export of agricultural products and food in this country is remarkable for many countries.
NAFTA negotiations in 2018 -2019 and turn it into a new contract for the companies in the energy and telecommunications has provided. Of course, this contract is limited to 3 countries.
Biggest countries exporter to Mexico
|1||United States of America||216 B|
|5||Korea, Republic of||16 B|
Biggest countries importer from Mexico
|1||United States of America||344 B|
Mexico's Top 5 Exports
|85||Electrical machinery||81 B|
|27||Mineral fuels||30 B|
|90||Optical, photographic||19 B|
Mexico's Top 5 Imports
|85||Electrical machinery||95 B|
|27||Mineral fuels||46 B|
Marketing in Mexico
For sales and activities in the Mexican market, special attention should be paid to important issues such as the language and culture of that country. In addition to developing strong working relationships with Mexican partners, firms should use Spanish-language materials and communicate in Spanish whenever possible while doing business in Mexico. Be conscious of distinct cultural practices, such as customary hours for breakfast and lunch. Pay attention to pricing. Address worries about after-sales support. Hiring local staff can help facilitate relationships and provide companies with insight on selling to the Mexican market.
Market Challenges Mexico
Before taking any action, first consider the area and how to work with the company or local people. Use legal advisers. Although activity in this country is very attractive and lucrative. But there are concerns about legal issues.
The competition in the Mexican market is high, and the presence of private companies affiliated with different groups can jeopardize the way of trade in this country.
Market Opportunities Mexico
Mexico’s most promising sectors include: agriculture; agribusiness; auto parts and services; aerospace; education services; energy; environmental technology; franchising; housing and construction; packaging equipment; plastics and resins; security and safety equipment and services; information technology; transportation infrastructure equipment and services; and travel and tourism services.
Pricing in the Mexican market
Exporters should consider factors such as brokerage costs, tax, value added tax, customs tariffs, and shipping for pricing and offering a competitive price. It is also important to take into consideration the value-added tax (IVA). With a few exceptions for border transactions or re-export, Mexican Customs (SAT) collects IVA from the importer on foreign transactions upon entry of the merchandise into Mexico. The IVA is 16 percent country-wide. The importer will pay other fees for such services as inland Mexico freight, warehousing, and customs brokerage fees, if applicable. The IVA is a pass-along tax, typically recovered at the point of sale when the product is sold to the end-user.
Trade restrictions in the Mexican market
Mexico, like other countries, has restrictions on foreign investment or activities, and only Mexican citizens or the Mexican state can operate in this business. Petroleum and other hydrocarbons, Basic petrochemicals , Planning and control of the national electric system, as well as the public services of transmission and distribution of electricity , Generation of nuclear energy , Radioactive materials , Telegraphic services , Radiotelegraphy , Postal service , Bank note issuing , Control, supervision and surveillance of ports, airports and heliports
Mexican agreements and international agreements
Mexico is a member of the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC), the G-20, and the Organization for Economic Cooperation and Development (OECD). this country has more free trade agreements (FTAs) than any other country in the world—12 FTAs with 46 countries—including NAFTA and FTAs with the European Union, European Free Trade Area, Japan, Israel, and ten countries in Latin America. Mexico is a party to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which, once ratified by each country, will link 11 Asia-Pacific economies. this is also a member of the Pacific Alliance, a trade bloc formed by Mexico, Chile, Colombia, and Peru in 2011.
The strategy for entering the Mexican market
In general, your strategy should be based on the creation of a representative, agent or distributor authorized for your products and services in Mexico, or to open a representative office. Given the size of the market, your strategy should take into account specific regional realms.
Mexicans prefer direct communication, especially in the early stages of communicating. Mail is widely used, and WhatsApp operating systems are very popular for fast interactions.
Mexicans have shown a good deal at a low price, so creating an effective pricing structure is key. Legal advice, intellectual property protection, sales, shipping and after-sales support, all should be the elements of your strategy.