Advantages of Manufacturing In Mexico
Mexico is a great strategy for manufacturing companies profit-seeking a better economic environment, lowering their operations cost and improving their flexibility thanks to the proximity to the United States and other countries. For companies on the verge of expansion, Mexico is a competitive move, providing cost benefits on their payroll, utilities, rent and suppliers.
México has free-trade agreements with 44 countries. Since the 1990’s Mexico has pursuit FTA’s with other countries, at this day it’s involved in 11 free trade agreements with 46 countries. Entering into trade agreements with other countries gives Mexico the opportunity to expand market access for its exports, providing lower operating costs for companies abroad. Being part of NAFTA (North American Free Trade Agreement) has lowered considerably most of the import tariffs. Quotas and import licenses were eliminated as well as some tariffs. Mexico has created a customs program called IMMEX which allows to temporarily import goods that will turn in to finish products and then re-exported without payment of taxes. The IMMEX program was created to promote the export of goods providing access to international markets.