Mexico: an overview
The RBS group has been present in Mexico since 1993.
Our Global Transaction Services (GTS) business offers
clients cash and liquidity management, trade and supply
chain finance, and commercial cards. Our services are
delivered through a dedicated team of local banking
professionals, who are supported by regional teams and
experts from across our global network.
Capital
So, however large or small your operations in Mexico, we
can offer the services and support to help you succeed.
Language
Geography
Economic overview
Mexico City.
Major ports
Veracruz, Tampico and Coatzacoalos on the Atlantic.
Acapulco, Guaymas, Mazatlán, Puerto Lázaro Cárdenas
and Salina Cruz on the Pacific.
Spanish.
Mexico has a large, free market economy that has
benefited significantly in recent years from free trade
agreements with over 50 countries, including most
significantly, the North American Free Trade Agreement
(NAFTA). The economy has grown strongly since 1996 and
this economic stability and potential have helped it attract
high levels of foreign direct investment.
Guaymas
GDP fell 6.5% in 2009 as a result of the world financial
crisis as exports, asset prices and investment plummeted 1.
Increased exports, especially with the United States, pulled
Mexico out of recession in 2010 1. Growth in 2011 and
beyond is forecast to stabilise at a little below this level as
the government removes its stimulus measures and
increases taxation in an attempt to balance the budget 3.
MEXICO
Mazatlán
Tampico
Mexico City
Economic indicators
Veracruz
Coatzacoalos
2009
2010
% change
Population
112,484,645
113,724,226
GDP
US$1.486 trillion
US$1.567 trillion
5.45
GDP per capita
US$13,400
US$13,900
3.73
Exports
US$300 billion
US$303 billion
1
Imports
US$234 billion
US$306 billion
30.77
Unemployment
5.5%
5.6%
1.82
Inflation
3.6%
4.1%
14
Public debt
39.1% of GDP
41.5% of GDP
Puerto Lázaro Cárdenas
Acapulco
Salina Cruz
Mexico is in Middle America between the Caribbean Sea
and the North Pacific Ocean, bordering the US, Guatemala
and Belize. Its largest cities are Mexico City (a ‘mega-city’
of over 19 million people 1), Guadalajara, Monterrey, Puebla
and Tijuana. Mexico covers an area approximately the size
of Western Europe and is the largest trading nation in Latin
America 2.
1
2
CIA World Factbook
UKTI: Doing Business in Mexico
Source: CIA World Factbook
3
OECD Economic Outlook
1.102
6.14
Business opportunities
Imports
Imports by industry (% total imports)
Imports by country (% share)
US
Electrical Equipment
China
24
Japan
48
4
Vehicles
34
South Korea
Fuel
Germany
Plastics
Other
5
Machinery
23
16
5
Optical Equipment
Organic Chemicals
3
4
14
5
Other
8
7
Source: International Trade Centre, Trade Performance HS, 2009
Source: CIA World Factbook, 2009
Exports
Exports by country (% share)
Exports by industry (% total exports)
Electrical Equipment
US
Other
19
Vehicles
26
24
Fuel
Machinery
Optical Equipment
2
3
Precious Stones
4
15
81
13
13
Plastics
Other
Source: CIA World Factbook, 2009
Source: International Trade Centre, Trade Performance HS, 2009
Strong economic growth in recent years has boosted
per capita incomes considerably and with it, demand for
consumer goods. Despite significant poverty, Mexico has a
large and affluent middle class, keen to purchase the latest
high tech equipment and fashions. Mexico’s low labour
and manufacturing costs and its free trade agreement with
the US make it an ideal manufacturing base for developing
business in North America. An increasing number of
original equipment manufacturers have located there as a
result, creating opportunities for supply chain businesses,
especially in the industrial areas close to the US border.
Financial information
Currency and exchange rate
Recent average 19.41 pesos = £1 sterling
Exchange controls
A minority of countries impose restrictions on the exchange
of their currency. The Mexican government does not
impose restrictions on exchange transactions.
Repatriation of capital
There are no restrictions on returning capital invested in
Mexico back to its country of origin.
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Tax
Statutory requirements
Standard rate of VAT: 15%.
UK regulations
Contacts
UK contacts
UK Trade and Investment
1 Victoria Street
London SW1H 0ET
Tel: 020 7215 2471
www.ukti.gov.uk
UK government support agency dedicated to assisting UK
businesses to export. Provides sector and country specific
information and advice, trade fair and outward mission
participation and bespoke market intelligence services.
Mexican Embassy
16 St. George St
Hanover Square
London
W1S 1FD
Tel: 020 7499 8586
http://portal.sre.gob.mx/reinounidoeng/
Provides basic travel and investment information including
access to advice on trading in Mexico.
Local contacts
British Embassy
Rio Lerma 71
Col Cuauhtémoc
06500 México DF
Tel: +52 55 1670 3200
www.ukinmexico.fco.gov.uk/en
The embassy has a dedicated team, providing general
and sector related support for UK businesses wishing to
do business in Mexico. The team can provide information,
guidance and access to business contacts.
The British Chamber of Commerce
Rio de la Plata 30
Col Cuauhtémoc
06500 México DF
Tel: +52 55 5256 0901
www.britchamexico.com
The Chamber promotes trade and investment between
Mexico and the UK through a series of sector specific
events, seminars and networking opportunities.
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The Department for Business, Innovation and Skills controls
the export of goods according to the nature of the goods
and their intended use, and also their intended destination.
For current export controls refer to: www.bis.gov.uk
Import restrictions and licences
Most goods can be freely imported but restrictions apply
to some products. Further information may be obtained
from the Market Access Database (www.madb.europa.eu/
mkaccdb2/indexPubli.htm).
Samples
Importers generally seek to avoid paying duty on goods
entering the country solely for marketing purposes. Samples
of no commercial value may enter Mexico duty-free and
samples of commercial value may be imported duty-free
under bond of re-export within one year.
Marking of goods
Imported products must comply with local regulations for
the marking of goods. Commercial information must be
stated on the label including: the description of goods,
the name of the importer and exporter, a declaration in
Spanish that the goods have been made in the UK.
Further information may be obtained from the British
Standards Institute: www.bsigroup.co.uk.
Shipping marks
All packages should include shipping marks and numbers
and net and gross weights in metric.
Packing materials
A certificate of health issued by the Ministry of Agriculture is
required for chaff, hay and straw.
Mexico has implemented the International Plant Protection
Convention Guidelines for regulating wood packaging in
international trade (ISPM#15). Wooden packaging must
have been treated according to the requirements of the
convention and carry the appropriate marking or certificate.
Duties
EU goods and goods in free circulation in the EU are duty
free. Mexican tariffs are based on the harmonised system.
The Market Access Database (http://madb.europa.eu/
mkaccdb2/indexPubli.htm ) provides comprehensive tariff
details.
Insurance
No specific requirements.
rbs.co.uk/international
Documentation
Special certificates
Countries often require importers to obtain prior
authorisation to bring certain products into the country. The
Mexican government requirements include:
A certificate of free sale is required for certain products to
show that the goods comply with EU regulations and are
suitable for use by EU consumers.
Healthcare products require a sanitary registration issued
by the Federal Commission for the Protection against
Sanitary Risk. Further information may be obtained from:
www.cofepris.gob.mx/wb/cfp/ingles
Certificates of origin
A certificate of origin is a document stating in which
country goods originated. A EUR1 certificate is required
in order to claim zero duty in Mexico and may require
validation by the Mexican Ministry of Economy.
Commercial invoices
Five copies should be completed in Spanish or English.
The invoice should contain the following: seller’s name
and address, name and address of consignee, place and
date of issue, port and date of shipment, name of vessel,
sailing date, port and date of entry, marks, numbers, type,
quantities per lot, total number of packages, gross and net
weights in metric units, commercial specification of goods
(not to be given in any sort of code), unit price, total value,
country of origin, the exporter’s VAT number, commercial
terms (e.g. CIF, FOB), signature of seller and the following
declaration (the original is required to be signed):
‘Declaramos bajo protesta de decir verdad que los valores
y especificaciones aqui descritos son ciertos y coinciden
con los del mercado local.’ (We hereby certify and declare
that the value and specifications on this invoice are true
and are the same as supplied to the local market.)
Consular fees
Some countries will charge a legalisation fee for documents
such as a certificate of origin. If requested to have
documents legalised, Mexican officials will generally do so
for a nominal fee.
Consular invoices
A consular invoice is a document certifying a shipment
of goods and shows information such as the consignor,
consignee and value of the shipment. A consular invoice is
not required in Mexico.
Bills of lading
A bill of lading is a document issued by a carrier to a
shipper acknowledging receipt of goods to a named place
of delivery. As some countries specify the type of bill of
lading that will be acceptable it is important to check with
the relevant customs authority. In Mexico a bill of lading
may be ‘To order’.
To find out more about how RBS can support your
business needs in Mexico, please contact your
relationship manager or call 0800 210 0235.
This marketing communication is for information purposes only and does not constitute a binding obligation on The Royal Bank of Scotland plc or The Royal Bank of Scotland N.V.
The Royal Bank of Scotland plc. Registered in Scotland No. 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB.
The Royal Bank of Scotland plc is authorised and regulated in the United Kingdom by the Financial Services Authority. The Royal Bank of Scotland N.V. is authorised by De Nederlandsche Bank and regulated by the Autoriteit Financiele Markten (AFM) for the conduct of business in the Netherlands.
The Royal Bank of Scotland plc is in certain jurisdictions an authorised agent of The Royal Bank of Scotland N.V. and The Royal Bank of Scotland N.V. is in certain jurisdictions
an authorised agent of The Royal Bank of Scotland plc.
563-0711gUK
July 2011