Mexico positioning itself as a production location for North America
14 October 2022 12:11
Owing to the United States-Mexico-Canada Agreement (USMCA), Mexico offers ease of access to the US consumer market as a production location for Swiss companies and SMEs in particular. This is the conclusion reached by a report published by the Swiss-Mexican Chamber of Commerce and Industry (Cámara Suizo-Mexicana).
In addition to the generally favorable access to the US markets afforded by the USMCA, which is the successor to the former North American Free Trade Agreement (NAFTA), the “Mexico Nearshoring Report” points in particular to the industrial development of the country’s northern region bordering the USA and the growth area of the Bajío region in central Mexico, where suppliers for the automotive sector, aircraft construction and medical technology are based. The trade volume between Mexico and the USA amounted to 661 billion US dollars in 2021, the report states.
An interview with Rubén Araiza Díaz, Director of the Swiss Business Hub Mexico, is published in the report as well. This organization is based at the Swiss Embassy in Mexico and aims to support SMEs from Switzerland and Liechtenstein in developing their business in Mexico. It also represents Switzerland Global Enterprise (S-GE), the official Swiss consultancy, promotion and platform organization for export and investment promotion.
According to the Swiss Business Hub Mexico, the main opportunities for Swiss companies lie in the fact that suppliers have to develop more value-adding and innovative products such as tools, automation systems, robotics and 3D printing. The aerospace industry in Mexico alone will reach a volume of 10.2 billion US dollars by 2030.
The medical device market is estimated to be worth around 5 billion US dollars. Solutions are also being sought in the areas of Artificial Intelligence (AI), 3D printing and nanotechnology. “There are many opportunities for Swiss exporters to develop niche products and services, tools and special machines”, explains Rubén Araiza Díaz.