Referred to these days as the United Mexican States, Mexico sits south of North America and is the third largest Latin American country after Brazil and Argentina. The country is bordered to the north by the United States and to the south by Central American countries, Belize and Guatemala. Mexico also shares maritime borders with Cuba and Honduras.
Mexico City is the capital of Mexico and features most of the nation’s Federal District. It also holds a rich history being the largest city in Mexico, the most populous city in North America, and the oldest capital city in the Americas. The city is also one of North America’s most important political, cultural, educational, and financial centers.
The city was responsible for generating 15.8% of Mexico’s GDP, and the metropolitan area of Great Mexico City accounted for about 22% of the country’s GDP. Today, Mexico has a nominal GDP of US$1.3 trillion, making it the 16th largest country in the world. Its economy is also largely export-oriented, which makes it an emerging financial market.
During the last ten years, Mexico has employed reasonable economic, financial, and commercial policies to reinforce its domestic market. As a result, the economy has improved at an average rate of 2.1 percent.
According to 2020 World Bank data, 78% of Mexico’s GDP comes from foreign trade, which evidences the country’s heavy reliance on export. The country’s total export value sits at about US$416 billion, with the volume increasing by 7.7% in 2021.
The majority of Mexico’s foreign trade is made with its leading trading partner – the United States – which accounts for over three-quarters of its exports. The European Union, with 6.7%, and Canada, with 4.4%, make up other significant trading partners of Mexico.
Over time, Mexico has signed several free-trade agreements with over 40 nations, including the United States-Mexico-Canada Agreement and the free-trade agreement with the European Union, which has been in place since 2000.
The country has also seen a trade surplus in recent times, regardless of its negative trade balance. With exports increasing by 7.3% and imports decreasing by over double that rate, Mexico reached a trade balance surplus of USD$34.4 billion, primarily due to the strength of its automotive industry.
Here is a more comprehensive rundown of Mexico’s top ten exports, highlighting the worth and how much of the total export it makes up.
Recently, corruption and mismanagement across the Mexican political scene have been primarily publicized. However, this does little to affect container shipping from the country, and major companies continue to conduct their businesses regardless of political and social controversies.
Like every other country, shipping from Mexico requires compliance with legal requirements and obligations, depending on the cargo and shipper information. For instance, the cargo determines the Harmonized Tariff Schedule (HTS).
To complete the shipping process, the Ministry of Economy requires specific documents, most of which are issued by the Mexican Tax Administration, the Mexican Industrial Property Institute, and the Ministry of Economy itself. Failure to comply with requirements might result in shipping delays or fines.
Alternatively, exporters can engage freight forwarders familiar with Mexico’s export processes to ship their goods. Freight forwarders act as intermediaries and handle all exports from Mexico to other locations worldwide. Aside from freight forwarding, they could also engage in custom brokering and other marine shipping services.
Speaking of freight forwarders, Total Connection is one of the leading logistics solutions in the global container shipping sector. We group our services into two essential categories that satisfy all your export requirements – ocean freight and inland transportation.
With shipping service from every major port in Mexico, Total Connection fosters the growth of small and medium-scale businesses by streamlining the entire logistics process. We create a platform for you to connect your business with customers outside Mexico.
We understand the importance of inland transportation to ocean freight and offer access to various intermodal services through our strong relationship with different logistics services worldwide. All you need do is find the most suitable transport mode, and we’ll do the rest.
Finally, with numerous trade routes to choose from, you need not worry about high rates. Our rates are well below the standard market rates, and we efficiently avoid market fluctuations. Total Connection is ideal if you wish to ship any of your products from Mexico to any location abroad. Contact us today.