How imports and exports affect the Mexican economy?

Imports and exports are a big part of the Mexican economy. It has been a major source of economic growth and development of the country for decades. Mexico is among the top 10 countries within international trade, reaching 10th in exports and 9th in imports by 2013.

One of the most important economic activities for Mexico

Mexico has had imports and exports as one of its main economic axes since colonial ages. It was during the 50s with the full blown globalization and the aid of the industrial revolution that Mexico really took off its international trade.

It represents nearly 65% of Mexico’s GDP, with exports being around 30% of it. Opening its market to the world has given Mexico the opportunity to develop a world class automotive industry that now ranks among the top 10 in the world.

So great is the importance of this activity that Mexico is regarded as one of the countries with the most Free Trade Agreements. The economy in Mexico is heavily dependent on the exportation of goods.

There could be companies looking forward to export to North and Latin America, considering Mexico as their operation center. The import and export process can be made simpler to newcomers by taking a few things into consideration.

How to simplify the Mexican import and export process?

imports and exports affect the Mexican economy

The very first step to simplify the Mexican import and export process is to have a full understanding of the Free Trade Agreements Mexico has. This will help the foreign market selection easier as free trade can be applied. After this there are 4 measures to take into account.

  1. Preparing documentation.
  2. Efficient logistics management.
  3. Evading poor preparation.
  4. Simplifying shipping process.

The imports and exports process require companies to be registered with the Official Registered Importers as a means to prevent tax frauds. The imports and exports documentation Mexico needs include:

  • A completed customs declaration (a.k.a pedimento).
  • Commercial invoice.
  • Lading bill, issued by a carrier.

In order to get the most out of the USMCA importers and exporters must ensure to have all the necessary information on their invoice.

Simplifying the shipping process can be done in several ways. One of them is by setting a strategic regional supply chain somewhere prosperous in Mexico. The North East and Bajio regions are great examples of this. By doing so, the transportation costs will reduce.

Furthermore, having this approach will make it easier for your production line to produce and export only what is needed. Being closer to the market you are selling to gives an invoice on how much of your product they need.

What are the main destinations of Mexican exports?

imports and exports affect the Mexican economy

Mexico is one of the biggest exporters in the world. Thanks to its 13 Free Trade Agreements, Mexico has access to free trade with over 50 countries. This means that imports and exports come and go easily. But there are a few countries that Mexico exports more to.

Thanks to the USMCA, most of what Mexico exports go to the United States of America and Canada. Nevertheless, countries like Brazil, Germany, and South Korea are among the top importers.

“But what does Mexico export?” people may ask. This country has several of its industries in the global top 15. Here is a list of Mexico’s top exported products:

  1. Oil (petroleum) and derivatives
  2. Products from the automotive industry, such as auto parts and vehicles.
  3. Monitors and projectors.
  4. Fruits and vegetables, like avocado and papaya.
  5. Beef products.
  6. Malt beer.
  7. Computers.
  8. Cane sugar.
  9. Fish.
  10. Jewelry.

Any company that is looking to export to North and Latin America would benefit by settling in Mexico. Thus, here at VYNMSA we would like to assist you in settling in this country. 

We are one of the leading industrial real estate developers in Mexico. Plus, we have over 30 years of experience and have delivered over 500 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects. All while offering lease and sale solutions that always have a win-win approach. 

We also have around 20 inventory buildings ready for immediate occupancy. This is a total space of 2 million SqFt across Northeast and Central Mexico. 

Contact us and bring your company to Mexico with VYNMSA and be part of the imports and exports process of the country.

Source: Revista Comercio Exterior, Expansión, Oorden, Tetakawi, Forbes, Milenio

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