Help for UK companies
As with any new market it is essential to research and plan your strategy for Mexico. Mexico is a very competitive market and it is important to take a medium to long-term view. Doing business in Mexico can seem daunting for those new to the market, but taking a strategic approach is the key to making the process manageable.
When considering Mexico as an export market, the following points are important:
- Leave your preconceptions at home.
- Keep hold of your business sense as tightly as you would anywhere else.
- Do your homework on the market and on potential partners.
- Be patient, as some things may take longer to set up than you think (especially if they involve bureaucracy). Allow for this in your preparations.
- Take a long-term approach, but don't stick rigidly to your plans. Things often change rapidly and unexpectedly in Mexico.
- Obtain good quality independent legal and professional advice, particularly concerning intellectual property.
- Consult UK Trade & Investment teams in Mexico and the UK who can provide help in researching the Mexican market.
Mexicans make friends first, then do business; you should be prepared to spend time socialising. Only move onto business when you have built up rapport.
Face to face contact is crucial. Mutual trust is essential for business success. Mexicans like to deal with someone familiar and of equal rank or status. If you send someone of junior rank to a potential client, they will meet someone of junior rank. A first visit should be carried out by a Manager but detailed negotiations should be carried out by a Director.
Many people in Mexico speak, or try to speak, technical English, but we recommend carrying brochures and a presentation letter in Spanish. Mexicans appreciate it when businessmen try to speak Spanish. If necessary, hiring an interpreter should be considered when visiting the country.
Correspondence and trade literature should be in Spanish where possible. Although English is widely spoken, there are still many who do not speak it or understand technical terminology. Price lists should be in Dollars or Pesos. Many exporters price in dollars. Spanish should be used, if possible, and all costs should be included. Payment is usually by letter of credit (in US dollars or Pesos) or by payment in advance.
However, many Mexican businesses will wish to move to open account terms once a relationship has been built up, due to the cost and delays associated with letters of credit.
The above is just a summary of how to do business in Mexico and some guidance. If you would like further information including about Supply chain operations, Joint ventures, Labour law, Banking, Taxation, Business etiquette etc, click on the link below and download the UKTI "Mexico, Doing Business guide".
Face to face contact is crucial. Mutual trust is essential for business success. Mexicans like to deal with someone familiar and of equal rank or status. If you send someone of junior rank to a potential client, they will meet someone of junior rank. A first visit should be carried out by a Manager but detailed negotiations should be carried out by a Director.
Many people in Mexico speak, or try to speak, technical English, but we recommend carrying brochures and a presentation letter in Spanish. Mexicans appreciate it when businessmen try to speak Spanish. If necessary, hiring an interpreter should be considered when visiting the country.
Correspondence and trade literature should be in Spanish where possible. Although English is widely spoken, there are still many who do not speak it or understand technical terminology. Price lists should be in Dollars or Pesos. Many exporters price in dollars. Spanish should be used, if possible, and all costs should be included. Payment is usually by letter of credit (in US dollars or Pesos) or by payment in advance.
However, many Mexican businesses will wish to move to open account terms once a relationship has been built up, due to the cost and delays associated with letters of credit.
The above is just a summary of how to do business in Mexico and some guidance. If you would like further information including about Supply chain operations, Joint ventures, Labour law, Banking, Taxation, Business etiquette etc, click on the link below and download the UKTI "Mexico, Doing Business guide".
FCO country updates
Subscribe to reports by Foreign Office staff on Mexico's key economic and political issues. Visit the FCO country updates page hosted by UK Trade & Investment.
