By Alicia Liu    Photo：Canva

Expanding Business to Mexico

When planning to expand your business overseas, it is crucial to consider the current market conditions of the target market you intend to enter. Mexico positions itself as a prime market for the development of e-commerce. Predictions indicate substantial growth in Mexico's e-commerce over the next five years, surpassing Spain, Chile, and Brazil. The openness of Mexico's trade policies has elevated its status globally.

In recent years, Mexico has implemented an ambitious infrastructure plan, constructing new transportation networks and modernizing existing ones, including 133,000 kilometers of highways, 76 airports (64 with international flights), 27,000 kilometers of railways, and 117 seaports (68 of which are container ports). The revitalized infrastructure, especially the intercity roads, has strengthened transportation connectivity within Mexico.

Distribution Model: Mexico Cross-Border Transportation – Starting from the United States

Cities like San Diego, Laredo, and Miami are popular starting points for transporting products to Mexico. The transport time from these locations to Mexico City is within one day.

San Diego, California

One of the top 30 container ports in the U.S., with an annual throughput of nearly 3 million tons.

Has two maritime facilities.

Transport to Mexico City: Less than 1 day.

Customs clearance: Within 2 hours.

Laredo, Texas

The largest inland port in the U.S.

Transport to Mexico City: Within 3 days.

Customs clearance: Within 6 hours.

Miami, Florida

The world's largest passenger port.

Ranks 15th in the U.S. for export cargo volume and 18th for import cargo volume.

Major gateway to Latin America.

Mexico City International Airport

Transport to Mexico City: Less than 1 day.

Manzanillo, Mexico

Import port from Asia.

Veracruz, Mexico

Import port from Europe.

Domestic Distribution in Mexico

The Mexico City area is the preferred distribution center based on location and market demand. With approximately 20 million urban residents, Mexico City is the largest city in Mexico and one of the most populous cities globally. The city is surrounded by two beltways, several highways, and toll roads connecting Mexico City to other major business centers. The logistics infrastructure in the Mexico City metropolitan area enables shippers to meet the needs of the city's population and serves as a hub for distributing goods to other regions within the country.

How to Start Business Operations in Mexico:

When considering entering the Mexican market, weigh the pros and cons of establishing a new company for business operations and explore suitable company structure types. Determine if your products require import declarations and be aware of all applicable taxes and tariffs. Find distribution centers and carriers that can deliver to your target service areas.

Global Business Hub:

Global Business Hub classifies markets based on the World Bank's "Doing Business" index, offering insights into the ease of doing business in Mexico. The index ranks global economies based on the ease of establishing and operating a business locally, ranging from 1 to 190. Scores are derived from assessments in 10 areas, including the ease of power supply, ease of obtaining credit, and the potential for cross-border trade.

When engaging in trade in a new market, it's beneficial to anticipate potential administrative, regulatory, and logistical challenges. Through Global Business Hub, you can easily familiarize yourself with local legal requirements and determine logistical solutions. Access additional support and tools, including in-depth guides and data insights.

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