Mexico is becoming a more and more well-known investment hub as time goes on due to its unique comparative advantages as an up-and-coming international trading superpower, and as such, continues to develop at an ever-increasing rate.
For instance, Mexico has large geographical and infrastructural advantages over competitor countries. It is one of the largest countries in the world and is strategically positioned to have direct access to not only Latin America and North America, but also Europe and Asia. The US-Mexico border stretches for over 3,000 kilometers with 52 international access points while the Pacific and Atlantic coastlines span over 11,000 kilometers.
In 2009, Mexico invested over $40 billion USD in infrastructure alone, exceeding 5% of GDP in the same year, reaching record levels. This resulted in 85 new airports, 76 seaports, 26,700 kilometers of railroads and 366,000 kilometers of roads.
Not to mention the increase in competitiveness and trade facilitation Mexico has undertaken having now become a direct threat to the Chinese manufacturing and development explosion. Mexico is reducing import tariffs from 13% to 5% from 2008 to 2013, and has also implemented programs for trade simplification through which products with zero tariffs will increase from 20% in 2008 to 63% in 2013. This reduction of duty rates will benefit products such as steel, shoes, fabrics, apparel, automotive and chemical.
Mexico also has preferential access to the most important markets internationally through one of the largest networks of commercial and free trade agreements, encompassing 43 countries and a potential market of over one billion consumers, representing 2/3 of the world’s imports and 75% of the global GDP. Mexico, with its domestic market of more than 107 million people, exports more manufacturing products than all other countries in Latin America combined.
These are just some of the many reasons people in the US and Canada are favoring putting their time and money into Mexico, whether it be opening a business or buying a home, it makes fiscal sense.