United Mexican States

01Economic Scale and Financial Flows

Mexico is one of the largest economies in Latin America and a major manufacturing and trade hub in North America. The country combines a large domestic market, developed industrial capacity, export infrastructure and strategic integration with the economies of the United States and Canada.

Its economic model is based on automotive manufacturing, electronics, engineering, medical equipment production, agriculture, tourism and financial services.

Mexico is a major industrial and export-oriented economy in which manufacturing, international trade and domestic consumption generate substantial financial flows. Exports to the United States and participation in North American production chains play a particularly important role.

02Geoeconomic Position

Mexico occupies a strategic position between North and Latin America, sharing extensive borders with the United States and having access to the Pacific Ocean, the Gulf of Mexico and the Caribbean Sea.

The country's integration into international trade agreements plays a particularly important role.

• USMCA (T-MEC) — the trade agreement between Mexico, the United States and Canada.
• CPTPP — the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
• EU-Mexico Trade Agreement — the framework governing trade relations between Mexico and the European Union.

In May 2026, the EU and Mexico signed the Modernised Global Agreement and the Interim Trade Agreement. Their entry into force is subject to the completion of the required legal procedures. As of November 2026, the Interim Trade Agreement's entry into force is still pending the necessary notifications by both parties.

The USMCA remains in force. However, its first joint review took place on 1 July 2026. The United States did not agree to extend the agreement for another 16-year term in its current form. As a result, annual joint reviews are предусмотрены until the parties reach an agreement on an extension or the agreement reaches the end of its term.

• Access to the markets of the United States and Canada.
• Integration into North American production chains.
• Access to the markets of CPTPP member countries.
• Trade relations with the European Union.
• Developed port infrastructure on two ocean coastlines.
• Opportunities for international industrial cooperation.

• United States. China. Canada. Germany. Japan. Republic of Korea.

Mexico is one of the major manufacturing bridges between North America and international markets. At the same time, the USMCA review and changes in US trade policy make regulatory developments an important factor in investment assessments.

03Key Growth Drivers

04Taxation and Investment Environment

Mexico offers foreign investors opportunities to participate in a wide range of economic sectors, including manufacturing, trade, real estate and technology businesses.

• Federal corporate income tax — 30%.
• Standard VAT rate — 16%.
• 100% foreign ownership is permitted in many sectors.
• Regional and industry-specific investment incentive programmes.
• Support for selected research, development and technology projects.

Under the Foreign Investment Law, foreign capital may participate in Mexican companies without a general ownership-percentage restriction, except for activities reserved for the state or Mexican entities and sectors subject to specific restrictions or foreign ownership limits.

Special rules apply to property acquisitions by foreign nationals. Direct ownership of land by foreign individuals and legal entities is restricted within a zone extending 50 km from the coastline and 100 km from international borders. For residential property, a bank trust structure known as a fideicomiso may be used.

Mexico offers opportunities for full foreign participation in many types of businesses. However, the appropriate ownership structure, licensing requirements and property acquisition arrangements depend on the sector and the project's location.

05Institutional Environment and Investment Protection

Mexico has a developed financial system, an established central bank, stock market infrastructure and a legal framework for attracting international capital.

• Legal protection of property rights.
• Regulation of international investment transactions.
• A developed banking system.
• Integration into the international trading system.
• Investment dispute resolution mechanisms under applicable agreements.
• International reserves exceeding $257 billion.

At the same time, investors need to consider currency risks, differences in regional regulation, security issues, judicial procedures and the export economy's dependence on US trade policy.

The USMCA review is particularly important because further changes to rules of origin may affect the automotive industry, electronics and other export-oriented sectors.

Mexico combines developed financial infrastructure and international trade integration with certain regulatory and geopolitical risks that should be considered when structuring projects.

06Investment Rationale: Nearshoring, Industry and the North American Market

Mexico is attractive to international investors due to the combination of a large domestic market, a developed manufacturing base, geographical proximity to the United States and record foreign investment inflows.

GDP of approximately $1.83 trillion. Population of nearly 132 million people. Merchandise exports exceeding $664 billion. Foreign direct investment inflows exceeding $40 billion. Developed automotive and electronics industries. Integration with the US and Canadian markets. A well-developed agribusiness base. A large FinTech ecosystem.