As economic problems persist throughout much of the industrialised world, a report published this week gives exporters an insight into how they can profit by setting their sights on the many opportunities of trading with Mexico.
‘Trade successfully with Mexico [Click to see report] ‘, produced by leading credit insurer Atradius, explains what can make or break export ventures to Mexico.
Atradius is also broadcasting a free webinar [Click to Register ] on this topic.
Mexico’s openness to international trade is clear from its many free trade agreements and its business friendly government. President Pena Nieto came to office in December last year, but has already made strides to combat crime and improve the world’s perception of Mexico as a thriving economy, not least through his announcement of major investment in the country’s infrastructure.
As the Atradius report points out, foreign suppliers need to take time to understand many aspects of the Mexican marketplace. For instance, local representation can assist in navigating the peculiarities of the market – and the language. Indeed, for some types of import, such as pharmaceuticals, local representation is required by law. It is also vital to engage a Mexican customs clearance broker to avoid any problems at the entry point.
The success of any business venture in Mexico hinges on an understanding of the business culture there. While ‘time is money’ might be a familiar business saying in other countries, it certainly isn’t the case in Mexico, where the building of trusted relationships and lengthy negotiations are the norm.
The wide range of planned infrastructure projects, covering energy technology, telecommunications, road, rail, ports and aviation, combined with President Pena Nieto’s pledge to break the monopolistic hold over sectors like telecommunications, offer real opportunities for foreign suppliers and investors.
Mexico is also home to many manufacturing and assembly plants – maquiladoras – providing a route into the market for foreign imports of everything from automotive parts to plastics, resins, packaging machinery, security equipment and food processing machinery. These maquiladoras also offer foreign companies the opportunity to set up profitable operations to sell products not just in Mexico but in the rest of North America too.
In addition, Mexico’s growing middle class and easier access to household credit have led to growing demand for consumer electronics and foreign-made luxury goods.
‘Trade successfully with Mexico’ also refers to the support that Atradius itself gives foreign exporters to Mexico, through its debt collection arm, specialising in the amicable debt resolution, and credit insurance that gives peace of mind to exporters seeking to establish valuable trade relationships while avoiding cash flow problems.
The report can be downloaded from Atradius’ website http://www.atradius.com, where you can also register to attend the free webinar [Click to Register] .
The Atradius Group provides trade credit insurance, surety and collections services worldwide. With a presence through 160 offices in 45 countries Atradius has access to credit information on 100 million companies worldwide. Its products help protect companies throughout the world from payment risks associated with selling products and services on credit. http://www.atradius.com