Mexico is the United States’ second-largest export market and third-largest trading partner. Many large global companies have chosen to locate significant manufacturing operations in Mexico along the U.S. Mexican border. The combination of lower cost wages and close proximity to US markets make Mexico an attractive option in today’s competitive environment. Approximately 54% of the raw materials used in Mexican manufacturing facilities are sourced from the US.

Top US raw material exports to Mexico include:

Motor Vehicle Parts

Plastics

Chemicals

Why Are US Companies Manufacturing in Mexico?

Mexico is an active member of the World Trade Organization, the G-20, and the Organization for Economic Cooperation and Development. The Mexican government supports free trade with agreements such as NAFTA, USMCA, ALADI. In total Mexico has 12 Free Trade Agreements with 46 countries. Companies operating in Mexico can take advantage of these extensive free trade agreements.

The US and Mexico are partners in NAFTA (USMCA) and enjoy a broad and expanding trade relationship. The United States and Mexico have cooperated more closely to improve North American competitiveness, ensure the safety of their citizens, and promote clean energy and a healthy environment.

The scope of US Mexican relations goes far beyond diplomatic and official contacts; it entails extensive commercial, cultural, and educational ties, as demonstrated by: