Until about 25 years ago, Mexico's economy was insular, protectionist and subject to extensive state control. Since then, successive national governments have opened many formerly closed sectors to foreign participation. In 2013, a set of major reforms took this process even further.
This evolution has been accelerated by Mexico's numerous free trade agreements (FTAs) with countries around the world, including the North American Free Trade Agreement (NAFTA), which came into force in 1994. Canada, of course, is also a NAFTA member, and the ever-expanding trade relationship between the two nations has made Mexico one of our key emerging markets for both exports and foreign direct investment (FDI).
Mexico's substantial population of 120 million also makes it a rich source of business opportunities. Reflecting this, Statistics Canada's trade figures indicate that Canada made more than USD 4.6 billion in domestic exports to Mexico in 2013. Bilateral trade between Canada and Mexico has seen an upward trend since the advent of NAFTA, and in 2013 exceeded USD 35 billion.
According to the Mexican Ministry of the Economy, Canadian exports to Mexico have been growing at an annual rate of 11.5 per cent since 1993, and Mexico is now Canada's fifth- largest export market. Mexico has also become the third-largest supplier of goods to the Canadian market after the United States and China.
In the area of FDI, again according to Mexican ministry figures, Canada's cumulative investment in Mexico rose to USD 17.6 billion between January 2000 and December 2013. This makes Canada the fourth-largest foreign investor in Mexico, exceeded only by the United States, the Netherlands and Spain. As of the end of 2013, 3,355 firms were registered in Mexico as having Canadian capital.
Below is a webinar that we published in 2015 with valuable information and resources.