Manage Risks with Effective Mexico Sourcing Strategy
Mexico procurement is primarily targeted at utilization of natural resources and minerals of this country. While exploring opportunities of Mexico procurement it is essential to study both agricultural and mineral outputs of this North American nation. However, industry is growing constantly thanks to inward investment made by US companies looking for cheaper labor.
As per rankings, Mexico holds 16th spot internationally in terms of exports amounting to more than US $27 billion a month, which amounts to 14 percent of its gross domestic product (GDP).
Items of Export
Mexico is a major exporter of petroleum and its derivatives, cotton, textiles, coffee, vegetables, fruits, and manufactured goods. These products are either used as raw material or as intermediaries in manufacturing industries located in different corners of the globe.
80 percent of Mexico’s exports go to United States. Other exporting partners include Canada, Japan, European Union (EU) countries, Israel, and nations of Central and South Americas. The major importers are USA, Japan, and China.
Resources in Mexico
There is abundance of wheat, corn, rice, beans, and tomatoes. Among cash crops grown in this country, coffee, cotton and fruits are notable. Dairy products, poultry, and beef are other important items produced in large scale for local consumption and exports. These also are used in food processing industries. Timber is a plantation product that contributes significantly to export earnings. Mineral resources found in Mexico include petroleum, natural gas, gold, silver, zinc, lead, and copper.
Food and beverage is a noteworthy industry of Mexico. Other prominent industries include petroleum extraction and refining, textiles, automobiles, chemicals, and consumer durables. Aircraft component manufacturing, iron molding and fabrication are new areas of specialization and major export revenue earners.
Mexico is characterized by free market trading dominated by private enterprises. After implementation of NAFTA (North American Free Trade Agreement) signed in 1994, This North American nation has free trade agreements with nearly 40 overseas countries including Japan and European nations.
For further details on Mexico procurement, please contact us.