Context
Why Mexico
Mexico is Latin America's second-largest economy and, since 2023, the largest trading partner of the United States. Nearshoring - the relocation of production closer to the US market - and the USMCA (T-MEC) sustain foreign direct investment in manufacturing, logistics and related services.
The federal government and the states are investing in energy, transport, water and ports. Part of this pipeline is delivered as public-private partnerships (APP) and through open tenders in which foreign-owned companies may participate.
The Foreign Investment Law allows 100% foreign ownership in most sectors. Restrictions apply to specific sectors and to the coastal and border zone, where real estate is held through a bank trust (fideicomiso). Foreign investment is registered with the Secretaría de Economía and tax is administered by the SAT.
The difficulties lie in procedure: agency requirements differ from state to state, documents are prepared in Spanish, and timelines depend on taking the steps in the right order. The adviser's role is to set that order, assess risks in advance and represent the investor before counterparties and authorities.
- No. 2
- economy in Latin America
- 130M
- people - a large domestic market
- USMCA
- free trade area with the US and Canada