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Competition and Caveats—Where Does Mexico Rank?

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Mexico has emerged as a highly competitive market, with rankings improving on a global scale while maintaining a prime spot near the top of the Latin American market. Amicable trade agreements and increased market competition are bolstering the country’s position. 

CompetitiveAdvantageColor(FP)1“Mexico’s institutions are improving,” says Adriana Lobo, the CEO of World Resources Institute México. She cites more transparency and less corruption, as well as growing, thriving, and safer cities. “I see lots of positive movement in general, and I am very optimistic in terms of the changes we need to make.” Indeed, Mexico is emerging as a popular option in the global marketplace thanks to streamlined requirements for establishing businesses, international trade agreements that emphasize legal certainty for all parties, and a healthy position in the global marketplace.

It seems to me that Mexico is in a situation of comparative advantage. For example, if we compare our economy with those in Europe, they are still going to have several years of uncertainty, with smaller growth and fewer prospects for young people.” —Manuel Galicia R., Founding Partner, Galicia Abogados

Miguel Treviño, the Director of strategic intelligence and risk control company RISKOP, concurs. “This is not a unique phenomenon—when a country achieves greater transparency, the awareness of corruption increases, too, because people start to find out about it.” Treviño believes that constitutionally chartered institutions will introduce anti-corruption issues to elections in Mexico all the way down to the local level, making the entire country more competitive. 

THE NUMBERS
One reason Mexico is alluring to foreign investors is its relatively minimal requirements for business operations. It ranks well in number of procedures for starting a business, better than China, India, or Brazil; and in days needed for starting a business, ahead of Germany, India, China, and Brazil. Especially high are its rankings in number of procedures and number of days needed for obtaining a construction permit, ahead of much of the world. Creditors recover their credit at a high rate and in a relatively short time. 

From a geographic perspective, Mexico is ideally situated to key markets around the world via major ports on both the Atlantic and Pacific Oceans. Ongoing port upgrades make shipping to and from Mexico even more convenient. 

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