Advantages, Cost Savings, Logistics, Infrastructure, IMMEX and Trade Agreements

Manufacturing in Mexico extends a combination of advantages not found anywhere in the world: lower labor costs, next-door proximity to North American markets, free trade agreements with nearly every country, a plentiful and highly skilled workforce, and production quality commiserate with U.S. and international standards.

Every major global manufacturer can be found here with Mexico’s principal manufacturing industries being aerospace, automotive, auto parts, electronics, medical devices, furniture, metal mechanical, and plastic injection molding. Some manufacturers in Mexico focus on lower-cost assembly or contract manufacturing operations, while others opt for their own maquiladoras in Mexico that are complementary and collaborative with the rest of their supply chain.

• Mexico has the most free trade agreements in the world, NAFTA/USMCA (North America) and the new CPTPP gives manufacturers and suppliers tariff-free access to 11 countries throughout the Asia-Pacific (Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam).
• Duty free temporary imports of raw materials and machinery under Mexico’s IMMEX program
• Less volatile trade relationship, we are geographical neighbors with deeply integrated economies.
• Stone’s throw proximity to the United States with dedicated commercial border crossings and deep-water port connected to the world.
• Decades of foreign direct investment and governmental investment in the billions of dollars for modern facilities, infrastructure, roads, electricity, and water.
• Highly skilled and plentiful labor force that is largely bilingual and bicultural.

The  North American Free Trade Agreement  (NAFTA/USMCA) is now in its 22nd year and is the world’s biggest success story for international trade agreements. Under NAFTA, the United States, Canada and Mexico, 99% of imports are duty-free with the remaining 1% benefiting from preferential-duty.

Additionally, under the Manufacturing, Maquiladora Program and Export Service Decree, the  IMMEX Program  allows for goods, raw materials and components to be imported into Mexico on a temporary basis, duty-free and VAT-free, as long as they are returned abroad within the established timeframes (most are 18mos). For the aerospace industry, aircraft and aircraft parts are also free of tariffs.

Mexico Exports Over $80 Billion Annually In Electronics Products

Mexico's entry to the  manufacturing  arena began more than 50 years ago. At its inception, the draw for foreign manufacturers was its low-cost labor rates. Today the manufacturing landscape and Mexico is much different; Major industries in Mexico have attracted global manufacturing companies such as Volkswagen, GM, Bombardier, Bose, Eaton and other world class corporations by proving the technical skills and capabilities to compete not only in North America, but on the world stage as well.

Tijuana,  the most visited  border city  in the globe  has become a manufacturing powerhouse for companies from all over the world pertaining to major industries in Mexico such as  Aerospace & Defense,  Medical Device,  Automotive  and Electronics.  Cities like Tijuana are burgeoning hubs for manufacturing activities.