Mexico Investment & Trade Guide 2024: Strategic Insights for APCIC Members

The Asia-Pacific Commerce and Industry Confederation (APCIC) is pleased to present this comprehensive guide to Mexico, a vibrant economy and one of Latin America’s largest markets. This report provides insights into Mexico’s economic landscape, key industries, trade policies, taxation framework, and strategic recommendations for APCIC members seeking to explore opportunities in this dynamic and strategically positioned market.

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1. Panorama económico

Mexico, with a GDP of approximately $1.5 trillion in 2023, is the world’s 15th-largest economy. As a manufacturing powerhouse and trade hub, Mexico benefits from its strategic location, skilled workforce, and extensive trade agreements.

Indicadores económicos clave:

• Crecimiento del PIB: Estimated at 3.1% in 2023, supported by robust exports and domestic consumption.
• Población: Approximately 130 million, with a growing middle class and youthful demographic.
• Tasa de inflación: Declined to 5.8% in 2023, reflecting effective monetary policies and government measures.

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2. Industrias clave

Mexico’s economy is diversified, with strong contributions from both traditional and high-growth sectors:

• Fabricación: A global leader in automotive production, electronics, and aerospace components, driven by proximity to the U.S. market.
• Agricultura y agroalimentación: A major exporter of avocados, berries, tequila, and processed foods, with an increasing focus on organic and high-value products.
• Energía: Investments in renewable energy, alongside oil and gas production, underpin Mexico’s energy sector.
• Turismo y hostelería: Renowned for its cultural heritage, beaches, and eco-tourism, Mexico attracts millions of international visitors annually.
• Technology and Startups: A growing fintech and tech ecosystem, particularly in Mexico City and Guadalajara.
• Construction and Infrastructure: Large-scale projects in transport, energy, and urban development drive this sector.

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3. Políticas comerciales

Mexico’s trade policies emphasize free trade and regional integration:

• United States-Mexico-Canada Agreement (USMCA): Provides preferential access to the U.S. and Canadian markets, supporting exports and cross-border investments.
• Acuerdos de libre comercio (ALC): Mexico has 14 FTAs covering 50 countries, offering unparalleled access to global markets.
• Economía orientada a la exportación: Policies prioritize high-value exports in automotive, electronics, and agricultural products.

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4. Marco fiscal

Mexico’s tax system supports business growth while balancing fiscal needs:

• Impuesto de sociedades: The standard rate is 30%, with incentives for export-oriented businesses and specific industries.
• Impuesto sobre el valor añadido (IVA): Set at 16%, applicable to most goods and services.
• Impuesto sobre la renta de las personas físicas: Progressive rates range from 1.92% to 35%, depending on income levels.
• Incentivos a la inversión: Tax exemptions and grants are available for renewable energy, R&D, and regional development projects.

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5. Clima de inversión

Mexico offers a favorable environment for trade and investment, characterized by:

• Ubicación estratégica: Proximity to the U.S. and access to both the Pacific and Atlantic oceans enhance its role as a trade hub.
• Mano de obra cualificada: A competitive labor force supports industries like manufacturing, technology, and services.
• Infraestructura: Modern ports, highways, and logistics networks facilitate efficient business operations.
• Ecosistema de innovación: Growing support for tech startups and innovation hubs fosters technological advancement.
• Natural Resource Wealth: Abundant resources in oil, gas, and agriculture provide diverse opportunities for investment.

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6. Recomendaciones estratégicas

For APCIC members considering investments or trade in Mexico:

1. Expand in Manufacturing: Leverage Mexico’s competitive labor costs and trade agreements to establish operations in automotive, electronics, or aerospace production.
2. Invertir en energías renovables: Participate in solar, wind, and geothermal projects aligned with Mexico’s energy transition goals.
3. Explore Agricultural Exports: Partner with local firms to access global markets for high-value agricultural and processed food products.
4. Engage in Infrastructure Development: Collaborate on transport, housing, and energy projects supported by public-private partnerships.
5. Leverage Fintech Growth: Invest in Mexico’s fintech and digital innovation sectors, which are expanding rapidly with regional potential.
6. Tap into Tourism Opportunities: Develop luxury resorts, cultural attractions, or eco-tourism ventures to benefit from growing international tourist arrivals.

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Conclusión

Mexico’s strategic location, diversified economy, and extensive trade network create immense opportunities for trade and investment. APCIC members are encouraged to leverage this guide to navigate the Mexican market and establish a strong presence in one of Latin America’s most dynamic economies.