The site of advanced Amerindian civilizations, Mexico came under Spanish rule for three centuries before achieving independence early in the 19th century. A devaluation of the peso in late 1994 threw Mexico into economic turmoil, triggering the worst recession in over half a century. Mexico Business

The Mexican Economy grew strongly in 2004, like it hadn't done since 2000", but the economic performance stayed below its possibilities, commented the German financial newspaper Handelsblatt today. "The economy of Mexico grew strong in 2004 after years of stagnation. The Gross Domestic Product of the emergent country grew in 4.1 percent with respect to the previous year, revealed the governor of the Mexican Central Bank, Guillermo Ortiz", said the newspaper.

Mexico as a neighboring country of the United States and member of NAFTA, Mexico is a natural market for U.S. exporters. Though it's close and familiar to us, it is still a foreign market, meaning that there are many things different from how we do business in the United States. This section aims to assist you in doing business in the huge Mexican market. You will find information within about logistics and customs, Mexican standards and regulations, payment terms and issues of a cross-cultural nature. Also included are relevant economic statistics, frequently asked questions about financing and information on taking security precautions when planning your next trip to Mexico.

Mexico covers almost 1.2 million square miles, Mexico is one of the largest countries in Latin America. Its principle cities are: Mexico City, Monterrey, Guadalajara and Tijuana, all cities where U. S. Commercial Service maintains offices to help American firms enter the Mexican market/

• Population: 110 million. GDP per capita: $9,100, 74 percent urban; under 20: 44%
• Wealthy/Upper Middle: 23%, Middle Class: 37%, Poor: 40%, Literacy Rate: 91%
• GDP Composition: Services 62.2%, Industry 34.1%, Agriculture 3,7%

Mexico's Business Climate - Mexico’s size and diversity are often under-appreciated by U.S. exporters.  It can be difficult to find a single distributor or agent to cover this vast market.

The Mexican legal system differs in many significant ways from the U.S. system. U.S. firms should consult with competent legal counsel before entering into any business agreements with Mexican partners. The U.S. Commercial Services can provide a list of attorneys with experience in dealing with U.S. corporate clients through the Business Service Provider Program1.

The banking system in Mexico has shown some signs of growth after years of stagnation, but interest rates remain relatively high.  In particular, small and medium enterprises (SMEs) find it difficult to obtain financing at reasonable rates despite Mexican Government efforts to increase capital for the SME's.  U.S. companies need to conduct thorough due diligence before entering into business with a Mexican firm, and should be conservative in extending credit and alert to payment delays.  As one element in a prudent due diligence process, the U.S. Commercial Service in Mexico can conduct background checks on potential Mexican partners.

Mexican customs regulations, product standards and labor laws may entail pitfalls for U.S. companies. U.S. Embassy commercial, economic, agricultural and labor attachés are available to counsel firms with respect to regulations that affect their particular export product or business interest. Please be aware that, everything takes more time to accomplish in Mexico than what U.S. companies are used to. Patience is definitely a virtue.

It's important to familiarize yourself with the Mexican Standards and Technical Regulations that may apply to your product(s).

Financing U.S. Exports - Become familiar with the various government programs available to help your company finance its export transactions, and give it the capital to carry out its export operations. While there is no "free" money offered by the federal government to start an export business, there are federal grants offered to help U.S. businesses fund export activities, research markets, create partnerships and conduct training.

Logistics Solutions - When shipping a product overseas, the exporter must be aware and ensure that the merchandise is: Packed correctly so that it arrives in good condition; Labeled correctly to ensure that the goods are handled properly and arrive on time at the right place; Documented correctly to meet U.S. and Mexican government requirements, as well as Proper collection standards; and Insured against damage, loss, pilferage and delay.

Getting Paid by Your Mexican Buyer - Learn about prudent credit practices and various payment mechanisms commonly used in international business transactions.

About Mexican Business and Social Customs - Mexico has its own customs with indirectness and with difficulty in saying "no". It is important in establishing personal relationships.

Mexico Grows as an Incentive Destination

Mexico Incentive Destination - Only two non-U.S. cities made the cut on St. Louis-based Maritz Travel's Top 10 List of the most-sought-after incentive and business meeting destinations: The Mexican resort towns of Los Cabos and Cancun.

Based on an annual review of all the year's past, pending and presented business, the list shows an increasing interest in Mexico. Reasons cited include a growing number of all-inclusive resorts, as well as a variety of activities, including adventure-travel. Los Cabos and Cancun also have many top golf courses, new luxury resorts and plenty of rich cultural and historical sites nearby, according to a statement by Alicia Feito, vice president of industry relations for Maritz Travel. Los Cabos ranked third and Cancun seventh.

The Scottsdale/Phoenix area and Las Vegas were the top two destinations on the list. After Los Cabos came Orlando, Florida, San Diego and Chicago. New York, Dallas and Miami rounded out the list, taking eighth, ninth and tenth places, respectively.

About the Mexico Tourism Board - The Mexico Tourism Board (MTB) brings together the resources of federal and state governments, municipalities and private companies to promote Mexico's tourism attractions and destinations internationally. Created in 1999, the MTB is Mexico’s tourism promotion agency, and its participants include members of both the private and public sectors. The MTB has offices throughout North America, Europe, Japan and Latin America. Travel Mexico Adventure Travel