Doing Business in Mexico2011

Population: 112,322,727 million GDP per capita: $13,200 (est. 2009) Under 20: 44 % Literacy Rate: 91 % Urban: 77 % Wealthy/Upper Middle: 23% Middle Class: 37% Poor: 40%

40%

37%

23% PoorMiddle ClassWealthy / Upper Class

MEXICO – A SNAP SHOT

Why Mexico?

Location / Access to Goods/Services/Market in U.S.

Size, Diversify, and Vast MarketShared Culture: Western, HispanicManufacturing base in various sectorsStronger legal protectionsPolitically stableMacroeconomic stability

Safety & Security in Mexico:

A Changing Environment The changing security environment in Mexico presents

challenges for U.S. companies

Border cities are particularly vulnerable, such as Nuevo Laredo, Juarez, Reynosa, Matamoros, and Tijuana

Businesses in Mexico are investing more in security for their personnel, facilities

Visitors need to use common sense and be aware

State Department Website for Travel Advisories: http://travel.state.gov/travel

Mexico is the United States’ 3rd largest trading partner

Mexico is the 2nd destination of all U.S. exports

Mexico accounts for roughly 1/8 of all U.S. exports

22 American states depend on Mexico as their first or second destination for exports

One billion/day in two way trade

Mexico – US Trade

World’s largest free trade area: 442.4 million people; $15.4 trillion GDP

No tariffs on U.S. exports to Mexico (except current dispute)

It clarifies and simplifies rules of trade Institution of Dispute Resolution Process -

Trucking is Major Issue U.S.-Mexico trade increased 317%: from $88

billion in 1993 to $367 billion in 2008 Trade has grown faster than the infrastructure

that handles it Mutual Recognition Agreements for

testing/certification in some sectors

The impact of NAFTA

MEXICAN BUSINESS CULTURE

Understanding cultural differences can make or break successful business

deals.

MARKETCHALLENGES

DRESS CODEFormalMen:

suits & tiesWomen:

2 piece set / dress, skirts

Except for use in a beach resort, shorts do not enter into the dress code anywhere

LEADING SECTORS/OPPORTUNITIES

Agribusiness Sector

Airport and Ground Support Equipment

Automotive Parts and Supplies

Education and Training Services

Energy Sector

Environmental Sector

Franchising Sector

Hotel and Restaurant Equipment

Housing and Construction

Internet and IT Services

Packaging Equipment

Security and Safety Equipment

Telecommunications Equipment

Transportation and Infrastructure Equipment

Market Entry Strategies

The best strategy to enter the Mexican market is to find a local representative or distributor. With this, buyers feel secure that initial training, spare parts and service will be provided.

Due to regional concentration throughout Mexico, representation locally will yield better results than a single, nation-wide distributor.

Price is important, but not necessarily the deciding factor.

Be prepared to provide brochures, catalogs, and printed materials in Spanish. Keep websites international-user-friendly.

THANK YOU

State of North Carolina Mexico Office

LAURA CAMBEROS

Trade Representative

52-55-1085-7208

laura@ncmexico.com