Mexico can be a land of opportunities for all kinds of businesses. But like many of the worlds markets, both established and emerging, doing business with Mexico proves to have its own set of challenges. Export/import to Mexico can be very rewarding when one has knowledge about the systems, requirements, and laws in place. The Mexican government has worked to improve its infrastructure and has strived to foster competition in sectors such as telecommunications, energy and transportation, and with it attracting interest from businesses in the United States and around the world. As for the United States, Mexico has become its second-largest export market. And as per a recent report published by PwC, Mexico could become the seventh largest economy in the world by the year 2050.
The revisions in its trade policies have been the biggest changes that the trade segment of Mexico has seen. It has transformed itself into a global manufacturing base by opening its borders. And with a strong workforce, low cost of labor, and a growing economy, Mexico has grown into a manufacturing and goods consumption hub.
With that being said, there are still several hurdles to face in regards to exporting goods into Mexico. Someone looking to export needs to understand the fiscal and legal systems of the country. It is crucial to be aware of the legal, taxation and the accounting framework that comes with exporting into the neighbor to the south. In short, it can be a complex system to try to navigate, but with efforts from both governments and customs house broker companies like ours, the process has become much more manageable. General Warehousing and Storage, Navigating NAFTA, and Mexican logistic solutions are all areas that when partnering with the right company, makes the export process smoother.
If you have ever been involved in the export process, you will recognize many of the challenges being written about. There are so many bits and pieces involved in the export process that can easily be overlooked if you’re not careful. For instance, did you know there is a legal requirement in Mexico to label all retail products in Spanish language prior to export into the country. Which is just another example of the complexities that we make our clients aware of so that valuable time and capital are not wasted.
NAFTA or the North American Free Trade Agreements has made trade between the U.S and Mexico boom. Border states such as Texas have played a key role in US-Mexico trade through border crossing, and freight trucking – which brings up another challenge. How will you get your product to Mexico? Who will you use for transporting your goods? Where will you keep your product? Do you know hoe to navigate U.S. Customers and Border Protection (CPB)? These are all questions that need to be answered before the transfer of goods into Mexico.
As you can see, as the global economy and global trade continue to expand, so do the complexities and challenges involved with getting goods from point A to point B.
Want to make your import/export process easier? Email us at Sales@pedrazachb.com to set up a free consultation.