- Written by Alejandra Guzman
- Published in Economic Development
Doing Business in Mexico
Doing Business in Mexico
By Alejandra Guzman
Click aqui para español- >Estableciendo Negocios en México
Our southern neighbor, Mexico, has a vibrant economy and is the United States’ second largest export market after Canada. Mexico has a large, diversified economy that is linked to its deep U.S. trade investment relations. With 120 million citizens and a rapidly growing middle class, Mexico represents an attractive market for investors and foreign businesses.
Monterrey, Mexico City and Guadalajara are the major business hubs in Mexico. Growing up and working for more than 10 years in Monterrey, I can attest that this city is, in fact, one of the most important business hubs in the country. Monterrey is home to an elite university system, a diverse group of well-established multinational companies, and a burgeoning class of globally-competitive startups.
The cosmopolitan nature of the city created a demand for international education, making it possible for most children to obtain bilingual education starting in preschool all the way to higher education. The Monterrey Tec is the most important higher education system in Latin America and has hundreds of agreements with international universities to support exchange programs. As expected, the culture of internationalization produces a highly competitive workforce.
Recently, Mexico passed reforms in the energy, telecommunications, labor, financial and educational sectors. The reforms are intended to increase the country’s global competitiveness. The energy and telecommunication reforms can offer new opportunities for U.S. firms.
As far as international trade agreements, it is important to watch the development of the “new NAFTA.” Late 2018, the U.S., Canada, and Mexico signed a trade deal to replace NAFTA at the G20 summit in Argentina. It is now known as USMCA - the United States-Mexico-Canada Agreement. Although President Donald Trump, Canadian Prime Minister Justin Trudeau and former Mexican President Enrique Peña Nieto signed the new agreement, it requires ratification by all three governments. Regardless, Mexico is one of the finest destinations for U.S. exporters.
Looking at the Mexico market is worth value. For investors and business leaders interested in this market, there are various resources to consider including the U.S. Commercial Service. Tasked with helping companies to expand, it has locations in Monterrey, Mexico City, Guadalajara and New Orleans. Most recently, the Global Connect coalition began helping to bridge the gap between small and medium-size businesses and global resources and networks.
Partners include the New Orleans Business Alliance, the World Trade Center of New Orleans, GNO, Inc., the Port of New Orleans, the Port of South Louisiana, and Louisiana Economic Development.
Visit NOLABA.org for more information on economic development, Global Connect, and international business events. Until next time!
