Mexico’s Global Business Partners And Shelter Companies

Mexico was given access to the worlds largest markets by enactment of the North American Free Trade Agreement. (NAFTA) In the years that followed, Mexican entrepreneurs mostly found their road to riches just across the border. But, in today’s economy those riches are also being realized across oceans with shelter companies.

Strategically, Mexico has taken full advantage of the benefits made possible by NAFTA by actively pursuing free trade agreements to help promote their economic growth. With Mexico collecting more free-trade agreements than that of the U.S. and China combined, the pursuit has paid off.

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According to a report by the Oxford Business Group, Mexico has signed free trade agreements with the EU, Israel and the European Free Trade Association (which includes Norway, Switzerland, Iceland and Liechtenstein.) Just over the past decade alone agreements have also been signed with Uruguay, Peru and Japan. Though, by far, the United States is still Mexico's most significant trading partner with over 80% of Mexico's exports headed to the U.S.
 

Mexico’s commitment to growing relations with their trade partners is a desirable factor for companies looking to do business in the country, as their sustained pursuit of conducting business globally is a clear objective.

Mexico – Benefits Of Offshoring And The Right Shore Collaboration

Cost saving advantages and the labor expertise has made Mexico the country of choice not only for start ups, but for many major international companies as well. The default used to be Asia, but with wages and trade regulations changing significantly in recent years, the tides have changed to the “right-shore”.

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A new term, self described by 3D Robotics as a “bi-national start up” has been taking shape with companies looking to flex their cost saving muscle by having manufacturing facilities in Mexico and administrative offices in boarding US cities.


Erik Bjontegrad, an ex-Communal executive, who is now President of Total Communicator Solutions speaks to the value of the Baja-Southern California connections and encourages business to look at Mexico because the benefits cannot be ignored. “The work ethic, the level of talent and the close proximity cannot be underplayed,” he said. “Mexico is different. It is Hispanic in nature and values relationships, so face-to-face meetings are key. Embrace the difference – and reap the rewards.”

We know the benefits of offshoring - whether it be cutting costs or moving operations from Asia to this shore, Mexico is a solid manufacturing option for a companies looking at the their strategic plans in this new global economy.