We have a unique relationship with our southern neighbor. Our border totals 1,954 miles and traverses different terrain, including deserts, urban areas, cities, and more. The two countries also share a lot of business and workers that travel back and forth across borders. Our exports to Mexico have changed over the course of the last few decades. Still, they remain an essential part of the country’s economy, just like our imports from Mexico make up essential goods that we see in the supermarket every day. Understanding this complex relationship and some of the new regulations can help make exporting to Mexico much more manageable.
If you are a U.S company doing business with Mexico, there are plenty of reasons to consider it. Proximity is not the only thing that ties us to Mexico and establishes a good trade relationship. We share a lot of history and culture, as well as deep trade and investment relations that have formed over many years. Mexico’s USD 1.3 trillion economy is the 2nd largest economy in Latin America and the 15th largest economy in the world. The median age in Mexico is 28 years old, making it a vibrant market for many U.S goods. Mexico has also seen a steady increase in growth for the past thirty years. Aside from unprecedented disruptions—including the COVID 19 pandemic— the country’s economic fortitude has proved relatively steady.
Our trade relationship with Mexico has been steady and consistent, especially after NAFTA was signed in the 1990s.
The story of exports and imports illustrates the complex economic relationship between the two countries.
The U.S.-Mexico border is always a topic of much politicization, but as the political rhetoric continues, importing and exporting more forward as usual, as both countries benefit from the trade relationship and have for many years. If you are a business owner interested in exporting to Mexico, it is still an exciting growth market with plenty of potential in industries like:
The USMCA modernizes and balances the trade dynamic by reducing incentives to outsource. It does this by placing a new emphasis on labor protections, as well as enforceable environmental regulations. If you had been trading under NAFTA, it means you will have to reassess your products and ensure that they comply and qualify with the new regulations of the USMCA.
So if you are an exporter looking into the Mexican market, here are a couple of things to consider and factor in as you look into exporting your goods across the border.
RM Customhouse can help you approach your exporting business the right way. There can be a lot of hoops and regulations to get across before things start rolling. We help businesses and enterprises interested in the Mexican market’s potential and navigate the difficult process of getting started and staying in compliance with changing laws.
Are you looking for a customs broker to export to Mexico or other countries? Call RM Customhouse today and find out how we can help.