Mexican-German International Relations: A Bright Future For Investors

German Leader, Angela Merkel is planning on visiting Mexico this month with one goal in mind – to expand the economic relationship between the two countries. Last year, the two-way trade between the nations totaled US$17.8 billion. Unknown to many, Mexico has been part of a Free Trade Agreement with Germany and the EU since 1997. While some countries are skeptical of investment in Mexico due to a checked past, security issues and corruption, many investors have jumped at the opportunity. There are over 1300 German businesses represented in Mexico. Some of the industries these companies are involved with include the automotive, chemical and pharmaceutical industries.

Both countries have abilities and efficiency in production, especially in the automotive industry. German investors have taken advantage of this through the creation of automotive manufacturing plants, scattered around Mexico. A large, skilled workforce and a strategic location in the middle of the Americas are just two of the reasons for German investment in the Mexican Automotive Industry. Despite uncertainty regarding the future of NAFTA, German investors remain confident in Mexico; in fact, investments are expected to increase in the coming years.

In addition to company formations and incorporations, many Germans and Europeans are investing in Mexico through international trade. Mexico has a huge consumer market and a growing middle-class; this has given rise to large increases in demand for international goods and services.

Mexico and Germany – A Mutual Respect and Growing Trade

Aside from the investment opportunities available for Germans (and Europeans in general), there are strong historical and cultural ties between the two nations. It is estimated that there are approximately 8500 Germans living in Mexico; with that number growing every year. The respect that both countries have for each other is shown through the Holocaust memorial museum in the centre of Mexico City and a Mexican exhibition in the Berlin Museum, Martin-Gropius-Bau called ‘The Maya – Language of Beauty´.

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At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean. We have offices in 17 key cities around the region, including Mexico City, and our unrivaled reach makes us ideal partners to support multi-jurisdiction market entries and cross-border operations.

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