Doing business in Mexico

Mexico has emerged as a global hub for advanced manufacturing, driven by its strategic location, skilled workforce, and integration into North American supply chains.

Mexico’s automotive manufacturing base is increasingly sophisticated. The country plays a pivotal role in the global automotive industry, hosting more than 30 major production facilities operated by leading international Original Equipment Manufacturers (OEMs), including Ford, General Motors, Volkswagen, Toyota, and BMW. These facilities are supported by a large and diversified network of Tier 1, Tier 2, and Tier 3 suppliers, contributing to a highly efficient and vertically integrated manufacturing ecosystem.

There are also opportunities for advanced manufacturing in aerospace and defence manufacturing, with active sectoral clusters in the states of Baja California, Chihuahua, Nuevo León, and Querétaro.

Production includes:

• aircraft components
• precision machining
• electronic systems
• drones
• ballistic protection gear

Mexican manufacturers are actively working to strengthen their regional supply chains, particularly within North America, in response to shifting global trade dynamics, rising transportation costs, and geopolitical uncertainties. This strategic shift aims to reduce dependence on Asian imports and enhance supply chain resilience. As a result, there is growing demand for advanced manufacturing processes such as:

• forging
• die casting
• extrusion
• precision machining
• plastic injection molding
• thermoforming
• production of electrical and electronic components

As Mexico’s manufacturing value chain continues to evolve, research and development (R&D) and engineering centers are emerging, particularly in regions like the Northeast, the Bajío and Central Mexico. These centers are driving innovation and creating new opportunities in artificial intelligence (AI), advanced materials, and smart manufacturing technologies. Manufacturers are increasingly using Internet of Things (IoT) solutions and Industry 4.0 technologies, such as automation, robotics, digital twins, and predictive analytics. The integration of these tools has helped manufacturers improve productivity, reduce downtime, and enhance product quality.

Mexico is Canada’s fourth largest export market for agricultural and agri-food products, purchasing $2.2 billion worth of Canadian product in 2024. Agri-food products accounted for over 25% of the value of Canada’s total exports to Mexico that year.

With agri-food imports totaling $45.4 billion in 2024, Mexico is a very attractive market for Canadian agricultural and agri-food products. Key industry subsectors include food processing, food service, and retail. Demand is growing for a wider variety of products, driven by population growth, urbanization, and rising disposable income.

Mexico offers a broad range of opportunities for Canadian exporters, including:

• grains, oilseeds and meats
• value-added and specialty food products
• private label offerings
• plant-based, organic, and health and wellness items
• functional and nutraceutical products
• inputs for food service and food processing, and retail-ready products

Additional opportunities have also been identified for controlled environment agriculture, precision agriculture, food tech and animal farm tech. The fish and seafood sector also shows promise. Canadian exporters can benefit from Mexico’s growing demand for high-quality agri-food products, while Mexican buyers value the quality, reliability, and safety of Canadian supply.

As Mexico seeks to diversify its sources of supply, Canada is well positioned to promote its agri-food sector as a trusted North American partner, supported by integrated supply chains, geographic proximity, and preferential market access through CUSMA and CPTPP. 

Mexico’s push for sustainable development and clean energy is creating strong demand for Canadian cleantech solutions, especially in energy and water and wastewater.

Under its 2025–2030 National Development Plan, Mexico is investing in energy diversification, infrastructure upgrades, and resource efficiency, with major initiatives in renewables, energy efficiency, water and wastewater, and clean transportation. Cleantech solutions are also gaining momentum as corporate sustainability mandates and stricter environmental regulations are being implemented in Mexico.

By 2030, Mexico aims to cut greenhouse gas emissions by 22%, and source 43% of energy from clean sources. These climate goals are driving demand for technologies in solar and wind, biomass, battery storage, and green hydrogen.

Water and wastewater treatment is a growing priority, particularly in cities like Mexico City and Monterrey, where regional shortages are prompting investment in advanced treatment, reuse systems, and digital water management.

Government incentives and regulatory reforms are creating a favorable environment for Canadian exporters, with opportunities to collaborate on strategic corridors, clean energy systems, and sustainable urban development.

Canada is well-positioned to support Mexico’s clean energy transition through:

• smart grids and energy infrastructure
• emissions reduction in oil and gas
• electrified transport and waste-to-energy solutions
• water and wastewater technologies 

The creative industries in Mexico are a key contributor to national identity and economic growth. As of 2025, they account for over 3% of Mexico’s GDP and employ more than 2 million people. The country’s creative industries are rapidly evolving due to digital transformation, new financing structures, and regulatory reform.

Canada views Mexico as a high-potential export market for Canada's creative industries, offering many business opportunities. In 2022, Mexico was Canada’s seventh largest creative export market with $377.8 million in cultural trade, up 52.7 % from 2021 and surpassing pre-pandemic levels. Some of the largest contributors to this growth were the audio-visual, performing arts and interactive digital media sector sub-sectors.

The audiovisual sub-sector contributed the largest share of Canadian cultural exports to Mexico in 2022, at $108.9 million, accounting for nearly one-third of Canada’s total cultural exports to the country. Mexico offers strong business opportunities for Canadian film and TV producers through its expanding audiovisual market, competitive production costs, and growing demand for high-quality international content. Collaboration is further encouraged by Mexico’s network of film festivals, co-production incentives, and openness to partnerships in streaming and digital distribution.

In 2022, Canada’s live performance sub-sector generated $27.1 million in export revenue in Mexico. The Mexican live performance market, which includes, music, theater, and dance, continues to grow steadily. The music event market is undergoing a transformation, driven by digital platforms and a rising appetite for live experiences, which offers many possibilities for Canadian performers.

Interactive digital media, especially immersive experiences and interactive installations, is also experiencing consistent growth in Mexico. In 2022, the Canadian interactive digital media sub-sector generated $24.3 million in export revenues in this market. There are opportunities for Canadian companies to leverage Mexico’s vibrant visual arts sector with its many festivals and events to compete effectively in the Mexican market. 

With an overall business turnover of over $110 billion in 2024, Mexico’s ICT sector experienced an annual growth rate of 4.5%. With roughly 4,500 ICT organizations, Mexico hosts some of the world’s best-known global brands, including leading firms such as Cisco, AT&T, Dell, HP, Oracle, SAP, AWS, Accenture, Alphabet, Microsoft, Tata Consultancy Services, Apple, Meta, Samsung, Qualcomm and Intel, among many others. While telecommunications still account for most of the sector’s global revenues, contributions from other segments are increasing. There has been significant growth in contributions from IT services and solutions related to cybersecurity, data analytics/IoT and artificial intelligence, segments where Canada has key strengths.

Mexico has seen a rise in the digital transformation of traditional sectors, with little over 40% of Mexican organizations already operating with one or more digital solutions on a day-to-day basis. 83% of people in Mexico use the internet, totalling more than 100 million users. Across many industries, artificial intelligence (AI) and other digital technologies are driving change. Innovative digital solutions are helping to automate processes, improve customer experience, strengthen analytics and monitoring, and create new connectivity solutions in sectors such as education, manufacturing, finance, retail, and agriculture.

Sub-sectors with high business potential include:

• security technologies (cybersecurity and physical security systems)
• enterprise software (for multiple industries)
• financial technologies (including insurance technologies)