In this era of nearshoring, Mexico emerges as a strategic destination for global enterprises looking to optimize their supply chains. With it’s privileged location and a solid network of the trade agreements, this country offers a unique combination of advantages for foreign investors.
Nearshoring, a trend that has become crucial in recent months, involves transferring part of the production process to a country closer to the final market. For companies aiming to establish themselves near one of the world’s largest markets, the United States, Mexico stands out as the best option.
But why Mexico? Beyond it’s geographic proximity to the United States, Mexico offers a highly qualified workforce and an extensive network of international agreements. With 14 free trade agreements covering 50 countries, including the United States-Mexico-Canada Agreement (USMCA), and the Promotion and Reciprocal Protection of Invesments (APPRIs), Mexico ensures a favorable environment for invesment. Additionally, other agreements within the framework of the Latin American Integration Association (ALADI) further enhance its attractiveness.
But it’s not just location and trade agreement that make Mexico such a sought-after destination. The country also offers customs and tax benefits designed to reduce operating costs. Investors can take advantage of tariff exemptions for the importation of machinery and raw materials essential for producing goods destined for both export and the domestic market.
One of the most notable tax benefits is the 16% credit through the Value Added Tax Law (VAT), applicable to the importation of goods that are subsequently exported. Additionally, it is crucial to analyze the most appropriate tax scheme for optimizing the tax burden under the Income Tax Law (ISR Law), ensuring both regulatory compliance and operational continuity.
Mexico is not just an option; it is an opportunity for companies looking to expand in a globally competitive market. With it’s favorable environment, Mexico positions itself as a key partner in the success of your business.
