LOOKING TO AVOID US-CHINA TARIFFS?
In today’s ever-evolving global marketplace, navigating the intricate web of trade tariffs and international relations can be a daunting task. Are you looking to steer clear of the tumultuous US-China tariffs? Look no further than Haskee, LLC – your trusted partner in overcoming these challenges.
Our extensive global network and unrivaled expertise in Asia, Europe, and the Americas allow us to offer you viable alternatives and comprehensive supply chain management solutions. Whether you’re seeking the perfect manufacturer, planning a seamless production transition, or in need of scalable, end-to-end supply chain solutions, we’ve got you covered.
At Haskee, LLC, we take pride in our ability to connect businesses with opportunities worldwide. With us by your side, you can confidently explore options beyond the shadow of US-China tariffs. Let us empower your global ambitions, providing the guidance and support you need to thrive in today’s complex trade landscape. Discover the possibilities with Haskee, LLC, and embark on a journey towards tariff-free success.
COUNTRY OVERVIEW
Mexico’s economic landscape is a testament to the power of international trade and strategic positioning. The North American Free Trade Agreement (NAFTA), which came into effect in 1994, heralded a new era of economic growth for the nation. Tariffs on over half of Mexico’s exports to the US were lifted, opening the floodgates to prosperity.
In May 2019, Mexico’s global exports soared to an unprecedented high of USD 41,825.44 million, marking a 6.7% year-on-year increase. Non-oil exports were the driving force, surging by 7.7%. Among these exports, manufacturing took center stage, with remarkable growth in automotive products (16%), industrial machinery and equipment (11.9%), food and beverages (10.7%), and professional and scientific equipment (5.7%).
The United States, Mexico’s most significant trading partner, witnessed an impressive 8.5% rise in non-oil exports, largely propelled by robust auto sales (19.8%). Currently, a staggering 80% of Mexico’s exports find a home in the US, underscoring the depth of their economic ties. Mexico has evolved into a global hub for electronics production, manufacturing most of the flat-screen TVs sold in the US, as well as medical devices and aerospace parts.
International trade is the lifeblood of Mexico’s economy, constituting a substantial 77% of the country’s GDP. This far surpasses the trade percentages of Brazil (23%) and China (48%). This emphasis on trade has honed Mexico’s companies into globally competitive powerhouses. Take, for instance, Gruma, the world’s largest tortilla maker, or Bimbo, which ascended to the throne as the largest bread maker after acquiring US baker Sara Lee. Mexico’s strategic proximity to the US market and its shared language with Latin America further amplify its influence on the global stage.
In the automotive realm, Mexico’s growth has been nothing short of remarkable. In just five years, from 2010 to 2015, it catapulted from the ninth to the seventh largest auto manufacturer globally and clinched the fourth position in auto exports. Mexico’s ascent in the auto industry didn’t stop there—it recently overtook Japan as the second-largest auto parts exporter to the US.
As we explore Mexico’s top 10 exports, it’s essential to recognize the country’s expanding expertise in manufacturing, stamping, metal mechanics, and furniture assembly. Mexico’s story is one of ambition, innovation, and the relentless pursuit of excellence in global trade. It stands as a testament to the transformative power of international cooperation and the boundless opportunities that arise when nations come together in pursuit of prosperity and growth.
TOP 10 EXPORTS
1. Automotive – 49%
2. Electronic equipment, components and accessories – 19%
3. Electrical appliances and electric power generation equipment – 7%
4. Machinery and equipment – 5%
5. Metallic products – 5%
6. Oil and oil products – 5%
7. Chemicals – 3%
8. Basic metal industries – 3%
9. Food industry – 3%
10. Plastic and rubber industry – 3%
*data from www.inegi.org.mx (National Institute of Statistics and Geography)
ADVANTAGES OF BUYING FROM MEXICO
The enduring partnership between Mexico and the United States is a testament to the power of collaboration and shared values. This strong relationship is underpinned by several key factors, each contributing to a mutually beneficial alliance.
Mexico’s strategic geographical location is a cornerstone of this partnership. It not only expedites logistics but also keeps shipping costs low, facilitating the efficient movement of goods between the two nations. This proximity has fostered economic integration and enabled businesses to optimize their supply chains.
Crucially, Mexico boasts a combination of competitive labor costs and a highly skilled workforce, making it an attractive destination for manufacturing and investment. Its workforce’s qualifications align seamlessly with the demands of various industries, from automotive to aerospace. Additionally, Mexico’s intellectual property laws are well-aligned with those of the United States, ensuring the protection of innovations and fostering a climate of trust.
The shared time zones between Mexico and the US offer a logistical advantage that few other partnerships can match. This synchronicity in business hours enhances real-time communication, streamlining operations and decision-making.
Furthermore, the reduction of taxes in 43 US-Mexican border towns, including key states like Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas, since January 1, 2019, has created a compelling financial incentive. These tax reductions, including the drop in IVA (VAT) from 16% to 8% and ISR (corporate tax rate) from 30% to 20%, have encouraged business growth and investment in these border regions, driving economic vitality.
The cherry on top of this thriving partnership is the network of trade agreements that grant manufacturers in Mexico duty-free access to a staggering 60% of all other countries worldwide. This unparalleled access opens doors to global markets and positions Mexico as a strategic gateway for businesses looking to expand their reach.
In this era of global commerce, Mexico and the United States stand as shining examples of cooperation and shared prosperity. The enduring bonds forged by geography, labor strength, legal alignment, and tax incentives have created an environment where businesses thrive, innovation thrives, and opportunities abound. As foreign investors and manufacturers flock to Mexico, they embark on a journey of growth, driven by a powerful partnership that transcends borders and defines the future of trade.