Mexico’s strong points include:
– With labour costs comparable to Asia-based manufacturing, extensive trade agreements and a strategic location between North and South America, Mexico is well-positioned for those looking to break into markets or expand their supply chains in the Americas.
– The Government is very positively oriented to foreign investment (economic reform efforts, new investment opportunities, etc.)
– Young, skilled labour force.
– Extensive natural resources, allowing for the development of all types of industry at competitive rates.
– The country is the eighth most popular tourist destination for global travellers and home to more than 30 UNESCO World Heritage Sites.
Government Measures to Motivate or Restrict FDI
The Mexican Government has taken on substantial economic reforms that aim to help ensure the safety of investment operations, despite uncertainty in the global investment environment. Moreover, the Government presented a national infrastructure plan (with a focus on transportation, water, electricity, health, energy and urban development) in 2014. The large scale of this project will not only improve infrastructure for future investment operations, but also provide investment opportunities in sales to or subcontracting with the federal government.
In June 2016, Special Economic Zones (SEZs) were created to attract investment to the economically underdeveloped areas in the southern states of the country. Companies setting up in these SEZs will receive various incentives, trade facilities, duty-free customs benefits, infrastructure development prerogatives and easier regulatory processes.
Protection of Foreign Investment
- Bilateral investment conventions signed by Mexico
- Mexico has signed onto bilateral investment treaties with over 30 countries.
- International Controversies Registered By UNCTAD
- Some cases have been registered, mainly on the real estate sector on areas of tourism in the state of Yucatan. Consult the dispute settlement proceeding.
- Organizations Offering Their Assistance in Case of Disagreement
- ICCMEX , International Chamber of Commerce in Mexico
- Member of the Multilateral Investment Guarantee Agency
- Mexico is in process of being accepted.
