General overview for exporting to Mexico

1. Mexico Network Consulting
December 10, 2019
OEDIT Webinar

2. Neighbors International
● Boutique consulting firm,
founded 2013
● Cuauhtémoc, Mexico City
● Mission: To support and
steward business relationships
built on good information and
clear communication
● Purpose: To generate
exchange that drives
beneficial ideas across borders

3. Neighbors projects by sector 2014-2019
Manufacturing 9%
Food 5%
Consumer Goods 5%
Data / IT / Telecom 14%
Medical / Life Sciences 12%
Aviation / Aerospace 8%
Security 19%
Energy / Electric 11%
Infrastructure / Construction 10%
Mining 6%
● 135 distinct
companies
formally assisted
● 2018
– Completed 18
formal consulting
projects
– Generated
approximately
900 new contacts
for companies

4. Mexico sectors that grew in 2019
For more information see US ITA Mexico Commercial Guide.
● Agribusiness & agriculture
● Cosmetics, personal care
● E-commerce
● Education & training
● Energy and resources
– Renewables, electricity
– Environmental technologies
● Financial services: SMEs
very underserved
● Agribusiness & agriculture
● Cosmetics, personal care
● E-commerce
● Education & training
● Energy and resources
– Renewables, electricity
– Environmental technologies
● Financial services: SMEs
very underserved
● Franchises
● ICT & digital technologies
● Manufacturing sector
– Right now packaging, food
processing & aerospace
– Automotive flat this year but
still positioned to overtake
Germany
● Travel & tourism
● Security: logistics, IoT
● Franchises
● ICT & digital technologies
● Manufacturing sector
– Right now packaging, food
processing & aerospace
– Automotive flat this year but
still positioned to overtake
Germany
● Travel & tourism
● Security: logistics, IoT

5. “Traditional Mexico”
● -2% average growth
● The vast majority of
Mexico businesses
“Traditional Mexico”
● -2% average growth
● The vast majority of
Mexico businesses
For more see McKinsey,
A Tale of Two Mexicos: Growth and
Prosperity in a Two-Speed Economy
For more see McKinsey,
A Tale of Two Mexicos: Growth and
Prosperity in a Two-Speed Economy
“Global Mexico”
● 6% average growth
● Generator of the vast
share of Mexico revenue
“Global Mexico”
● 6% average growth
● Generator of the vast
share of Mexico revenue
Demand dimensions: “The 2 Mexicos”

6. Tailored opportunities: know how you fit
The market
● How well does your
product pay for itself?
● B2C: the Moneyed;
the spectrum from
“Starbucks middle
class” to BoP
● Leapfrog
opportunities
Your company
● Ability to tolerate
or mitigate risk
● Marketing, sales
and distribution
practices
● Ability to adapt
to market
All photographs from Unsplash.

7. USMCA: wins
for tech ,
banking +
workers
General market access
updates
● Prohibits requirements to use
local distributors for importation,
creates new provisions on im/ex
licensing transparency
● Prohibits restrictions on used
goods destined for remanufacture
● E-commerce: minimum taxable
import value raised from 50 to
100 USD
Rules of origin + wages
● Automotive, chemicals, steel,
glass, optical fiber
● Demands for Mexican labor
reform are good for Mexico
● $16/hour reasonable for “robot
babysitters”
For more information see USTR and Mondaq
Digital products +
services
● IP: common patentability
standards, limited disclosure
reqs for source code and
algorithms
● Customs does not apply to
digitally distributed products
● Prohibits restrictions on goods
containing cryptography
Financial services
● National and most-favored
nation treatment of service
providers
● Ensures access to local, publicly
operated payment and clearing
systems
● Local data storage requirements
are prohibited

8. ● Manufacturing
– ExpoManufactura
– Monterrey, February 11-13
● Aerospace manufacturing
– BCI Aerospace Meetings
– Queretaro, February 18-20
● Packaging
– ExpoPack
– Mexico City, June 2-5
● Industry 4.0
– Industrial Transformation Mexico
– Leon, Guanajuato, October 7-9
● Manufacturing
– ExpoManufactura
– Monterrey, February 11-13
● Aerospace manufacturing
– BCI Aerospace Meetings
– Queretaro, February 18-20
● Packaging
– ExpoPack
– Mexico City, June 2-5
● Industry 4.0
– Industrial Transformation Mexico
– Leon, Guanajuato, October 7-9
Mexico events worth keeping in mind
● Digital transformation (big data,
IoT, AI, distributed ledger)
– Inteligencia Mexico Conference,
June 30-July 1
● Security and cybersecurity
– Expo Seguridad, April 21-23
– Info Security Mexico, May 20-21
– Infocomm, August 19-21
● Water and clean energy
– GreenExpo, September 8-10
● Construction
– Expo CIHAC, October 13-15
All of the above in Mexico City
● Digital transformation (big data,
IoT, AI, distributed ledger)
– Inteligencia Mexico Conference,
June 30-July 1
● Security and cybersecurity
– Expo Seguridad, April 21-23
– Info Security Mexico, May 20-21
– Infocomm, August 19-21
● Water and clean energy
– GreenExpo, September 8-10
● Construction
– Expo CIHAC, October 13-15
All of the above in Mexico City

9. Gracias.
Mary Claire Whitaker, General Director
Neighbors International, S.A. de C.V.
Mexico City
mc.whitaker@neighbors.mx
+52 55 5027 0012
www.neighbors.mx
www.twitter.com/neighborsmx
Global Network Consultant for Mexico