Mexico, as a major economy and trading power in Latin America, is becoming a key strategic hub for global companies expanding into overseas markets.

With its unique geographical advantages, large market size, and diversified industrial structure, Mexico plays a crucial role in global trade.

This article aims to provide you with a comprehensive guide to developing the Mexican market, covering economic overview, major industries, transportation, market access requirements, and industry opportunities.

1. General Overview of Mexico

Mexico is located in the southern part of North America, bordering the United States to the north. As of 2023, the population was approximately 128 million with a per capita GDP of around $14,000. According to World Bank standards, Mexico is classified as an upper-middle-income country.

Mexico enjoys political stability, a sound legal system, and is a major player in population, economy, trade, and a key destination for foreign direct investment in Latin America.

(1) Key Industries

Agriculture, manufacture, and tourism.

Agriculture

Agriculture is one of Mexico’s economic pillars. According to the 2022 Agricultural Census by Mexico’s National Institute of Statistics and Geography (INEGI), the country has 190 million hectares of rural land, with 88.42 million hectares used for agriculture. This includes 32.12 million hectares of arable land and 39.8 million hectares of pasture and forest.

Main seasonal crops include corn, sorghum, beans, soybeans, wheat, rice, potatoes, and chili peppers. Perennial crops include coffee, oranges, mangoes, lemons, avocados, bananas, peaches, and grapes. Key livestock includes cattle, pigs, sheep, horses, and poultry. Due to its long coastline, Mexico also has a developed fishing industry, producing tuna, shrimp, shellfish, and sardines.

Manufacture

Mexico has a complete and diversified industrial system, with both light industries (food, pharmaceuticals, textiles, leather, apparel, paper) and heavy industries (automotive, steel, chemicals, machinery). The energy sector, especially oil and mining, also has a long history.

Manufacturing is the backbone of Mexico’s economy, accounting for over 80% of its export earnings and around 25% of GDP. The manufacturing sector includes more than 20 industries, such as steel, automotive, chemicals, electronics, metal processing, machinery, food, textiles, paper, clothing, rubber, and pharmaceuticals. Key sectors include oil, automotive, textile/apparel, and mining.

Tourism

According to the Mexican Tourism Ministry, tourism revenue in 2023 reached $30.81 billion USD, a 10% increase over 2022. There were 42.15 million international tourist arrivals in 2023, also up 10% from the previous year. Average tourist spending also rose, indicating strong growth in the tourism sector.

Industries Prioritised in Recent Years

Mexico is deeply integrated into the North American economy, with over 80% of its exports going to the US, making it a major gateway for global manufacturers entering the US market.

With the signing of the USMCA, stricter rules of origin have led to increased investment from global automotive brands. Mexico is now the largest exporter of vehicles to the US and the fourth-largest global producer of auto parts, with an annual production value of over $100 billion USD.

According to the Mexican Association of the Automotive Industry (AMIA), as of March 2024, there are 39 automotive OEMs with factories in Mexico.

(2) Transportation

Road

According to INEGI, Mexico’s national road network (RNC) totalled 852,000 km in 2023, connecting 297,000 locations and linking to over 25,000 ports, airports, train stations, and other infrastructure. Its road network connects to the US, Guatemala, and Belize.

Rail

The main freight lines are concentrated in the central and northern regions, linking key industrial zones with the US border. Rail transport is mainly operated by private companies, with major players including Ferromex, Ferrosur, and Kansas City Southern de México (KCSM).

Air

As of 2023, Mexico had 77 international airports and over 130 domestic ones. Major international airports include Mexico City International Airport (AICM), Cancún International Airport, and Guadalajara International Airport. These airports are well-connected to North and South America, Europe, and Asia, facilitating passenger and cargo transport.

Sea

With long coastlines on both the Pacific Ocean and the Gulf of Mexico, Mexico has 117 seaports. Key ports include:

Manzanillo Port – Pacific coast, largest container port

Lázaro Cárdenas Port – Deepwater port, important for Asian trade

Veracruz Port – Gulf coast, traditional trade gateway with Europe and the US

Altamira Port – Known for handling industrial cargo

2. Mexico's Trade

According to the Mexican Ministry of the Economy, in 2023 Mexico’s total foreign trade reached $1.2 trillion USD, with exports accounting for $580 billion USD and imports at $620 billion USD, resulting in a trade deficit of around $40 billion USD.

(1) Export Overview

Key export products include:

Automobiles and auto parts

Electronics and appliances

Oil and petroleum products

Agricultural goods

Machinery and equipment

In 2023, Mexico was the largest trading partner of the United States, surpassing China for the first time. This shift is driven by the ongoing reorganisation of global supply chains, with more companies favouring “nearshoring” in Mexico to cut logistics costs and manage supply chain risks.

(2) Import Overview

Key imported products include:

Machinery and equipment

Electronic components

Chemicals and pharmaceuticals

Plastic and rubber products

Consumer goods

Main import partners are the United States, China, Germany, Japan, and South Korea.

3. Free Trade Agreements

Mexico is one of the world’s most active countries in signing free trade agreements. As of 2023, Mexico has signed 14 FTAs with 50 countries, covering North America, Europe, Latin America, and Asia-Pacific.

Notable agreements include:

US-Mexico-Canada Agreement (USMCA)

EU-Mexico Free Trade Agreement (EU-MX FTA)

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Pacific Alliance (with Chile, Colombia, and Peru)

These FTAs allow Mexican goods to enter most global markets with reduced or zero tariffs, giving Mexico a strong advantage in international trade.

4. Risks and Considerations

Despite its advantages, businesses should also be aware of:

Security concerns in some regions

Complex local regulations

Varying infrastructure quality across states

Labour union regulations under USMCA

Currency fluctuations and inflation pressures

Due diligence, market research, and professional local support are essential for navigating Mexico’s unique business environment.

Final Thoughts

Mexico's export potential is strong, driven by its strategic position, trade network, and industrial capability.

For companies eyeing North America, Mexico is fast becoming a top choice.

Thinking about expanding your trade footprint into Mexico?

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