Mexico’s geographical advantage as a direct neighbor of the USA, with cities such as Monterrey, Coahuila, Chihuahua and Ciudad Juarez, offers the country considerable advantages. This proximity makes Mexico an attractive and advantageous location for logistics activities and attracts foreign direct investment (FDI).
Much of the FDI flows into the state of Nuevo León, which, with its capital city of Monterrey, is well equipped to quickly turn these investments around. Thanks to its strong infrastructure and well-developed business environment, Nuevo León attracts companies from various industries. Notably, companies such as Boeing, General Motors, Honda, and Samsung have relocated their production capacities to Mexico, amounting to more than $3 billion per year.
In the west of the country, specifically in Tijuana and Mexicali, production facilities for the automotive industry have been thriving for many years. As a result, these regions have actively and successfully established themselves as crucial centers for automotive production.
Mexico has been the largest trading partner of the United States for about 3-4 years. As a result, U.S. investment in China has decreased significantly, and imports of Chinese products have been reduced by up to 35%. This trend strengthens the attractiveness of Mexico as a manufacturing base for U.S. companies. The close economic ties between the two countries foster a robust trade relationship, generating numerous opportunities for cooperation and growth.
Additionally, prominent Western companies, including Bosch, BMW, Continental, Honeywell, and Lego, have recently made investments in Mexico. They have astutely recognized the potential and benefits of establishing their presence in the country.
The entire sales market for European companies producing in Mexico is secured by the U.S.-Mexico-Canada Free Trade Agreement (USMCA). This agreement ensures trade facilitation and promotes economic integration between the countries, providing European companies with stable and advantageous market access.