BRIEFING PACKAGE – MEXICO CITY – THE ESSENTIALS
COUNTRY OVERVIEW
Mexico’s growing consumer class, favorable labor demographics, and low political unrest make it an attractive market
for Canadian businesses
• Mexico is committed to free trade (agreements with 45 countries, including NAFTA),
and has introduced reforms (e.g. energy) to increase global competitiveness
and economic growth
• Moderate economic (GDP) growth in Mexico expected at ~2% in 2017
Currency: Mexican Peso (MXN) - as of Jan, 12, 2017: CAD$1 = MXN$16.50
Government structure: Federal presidential constitutional republic (elected politicians)
Language: Spanish is the official language and primary language of business
Weather: April and May temperatures have daily highs around 27°C, daily lows are around
President Enrique Peña Nieto
13°C and monthly average precipitation is between 14-24mm.
in office as of July 1, 2012
CURRENT NEWS
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Mexico’s share of North American light-vehicle production topped 20% in the first two months of 2017, gaining regional
share from the U.S. and Canada. The development heightens the stakes as auto makers await potential changes in
trade rules by the Trump administration.
The Mexican renewables unit of Enel SpA has started construction of a 200-MW wind farm in Mexico, the Italian energy
group announced on Friday. The Amistad plant will require a total investment of about USD 300 million.
TIPS FOR DOING BUSINESS
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If you do not speak Spanish at a business level, consider hiring an interpreter. However, learning a few choice words
and phrases will go a long way toward building relationships (see page 3)
Unless told otherwise, use professional title (if unknown, use Señor/ Señora), followed by surname
Meetings are often held at breakfast or luncheon (which can be quite lengthy)
Business dress in Mexico is formal. Men usually wear suits; women wear light suits and dresses
An introduction from a mutual connection often helps move business relations along
Mexican businesspeople prefer to avoid overt disagreements; their way of saying no is often by saying maybe or I'll get
back to you – don’t misinterpret this for interest
Tardiness/cancellations aren’t uncommon – it’s important to confirm the meeting 24 hours in advance
A handshake is an accepted greeting, but more familiar contacts may use a friendly embrace
Small talk is an important part of establishing business relationships with Mexicans
Be aware that displays of emotion are common during business meetings in Mexico
For more information, visit the Mexico page on the Centre for Intercultural Learning HERE or at bit.ly/2jwzJaV
LOCAL CANADIAN GOVERNMENT AFFILIATES
DIALING INTO MEXICO:
both the TCS and the Canadian Embassy are located at:
Schiller 529, Col. Bosque de Chapultepec (Polanco)
Del. Miguel Hidalgo, 11560 Mexico City, D.F., Mexico
Trade Commissioner Service (TCS) in Mexico
• Phone: +011 52 55 5724 7900;
• Email: [email protected]
Canadian Embassy in Mexico
• Phone: +011 52 55 5724 7900; Email: [email protected]
Canadian Chamber of Commerce in Mexico
• Phone: +011 52 55 5580 3690
For local contacts such as lawyers, accountants, translators, financial
institutions, etc., visit the Trade Commissioner Service Visit Information
HERE or at bit.ly/2j8QiNw
011 + 52 + 55 (Mexico City code) +
local number
DIALING OUT TO CANADA:
00 + 1 + Area Code + local number
BRIEFING PACKAGE – MEXICO CITY – DOING BUSINESS
CULTURAL AWARENESS
TOPICS OF CONVERSATION
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Things to talk about with locals:
• Repetition of questions during the conversation is
expected (i.e. how are you?) – it’s seen as a true
intention to hear the answer (caring about the
other’s wellbeing)
• Mexican scenery and landmarks
• Mexican art, culture, history and music
• Your family or job – family is very important in
Mexico
• The local Mexican cuisine and drink is always a
great topic
• All types of sports, especially Mexican “futbol”
(soccer)
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Mexicans need less personal space – avoid backing
away, it’s seen as unfriendly
Latino Mexicans fall into the Latin American
stereotype of kissing, touching, close proximity, and
generally warm body language when communicating
with others
Mexican society is highly "classist" - the way you are
spoken to and seen by others will depend on the
class you belong
Men should avoid putting their hands in their pockets
as this is considered rude
Be wary of prolonged eye contact – as in many
cultures, staring is perceived as rude
Sarcasm is non-existent, and that this form of
humour can be misconstrued as negativity or
offensive – but Mexicans love a good joke!
The most popular sports are soccer, boxing, baseball
(northwest and southeast regions), basketball, and
American football
Things to avoid discussing with locals:
• Politics and religion
• Tensions with the US regarding illegal aliens
• Corruption, terrorism, or drug trafficking -- even
though it may be in the news
• Religious profanity is very offensive
• Foreign aid and related policies
ECONOMICS AND TRADE IN MEXICO
EDC IN MEXICO
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2015 Canadian exports to Mexico: $6.59 billion CAD
2015 Canadian foreign direct investment in Mexico:
$14.82 billion CAD
Over 17% of Canadian goods exported to Mexico
were motor vehicle parts, 12% were agricultural
products (i.e. seeds), and 4% were ethylene
polymers
GDP/capita: $11,864USD, versus $56,115 USD in
the US and $43,248USD in Canada
Ease of doing business ranking (left chart below):
Mexico ranks 48th of 190 countries for ease of
opening/running a business
Global competitiveness 2016 ranking (right chart
below): Mexico ranks 51st of 138 markets on level of
productivity & prosperity
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15
22
51
48
United States
Canada
Mexico
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EDC supports Canadian exporters exploring
opportunities in Mexico through its Mexico City and
Monterrey offices, via regional reps who have
networks of local contacts & business information –
one such rep may be found below
EDC is actively pursuing business opportunities in
the Mexican market, and financing and insurance
options are open and subject to regular approval
criteria
As of January 9, 2017, it is possible to complete a
transaction in Mexican pesos directly in Mexico
through a new EDC peso account. This allows EDC
to match local banks’ financing options.
Canadian companies assisted: 773
International buyers insured: 1199
Business volume covered: $3.23B CAD
Your Chief Representative:
Teresa Nizzola
Email: [email protected]
BRIEFING PACKAGE – MEXICO CITY – OTHER INFORMATION
TRAVEL TIPS
IF YOU HAVE SOME FREE TIME
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The subway is cheap, but gets very crowded at
rush hours and is a common scene for petty crime
(pickpocketing) and is to be avoided
If leaving the airport by cab, take a pre-paid taxi
Avoid street taxis - use hotel cabs instead, or Uber
(as it has become a popular option)
Tipping in restaurants/bars is ~10-15%
Mexicans keep it fairly casual during the day but
like to dress up at night
You won’t need a plug adapter nor voltage
converter – same standards as Canada
To avoid data roaming fees, consider buying a
prepaid SIM card with a communications provider
– alternatively, Telcel and AT&T offer plans
without roaming fees
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Zócalo – main plaza of Mexico City
Museo Nacional de Historia/Castillo de Chapultepec –
museum with a view of the city
Paseo de la Reforma – rent a bike and traverse Mexico
City via this avenue with a bike lane
Frida Kahlo Museum (Casa Azul) – home of the artist
and Diego Rivera
Ballet Folklórico de México (in the Palacio de Bellas
Artes) – a show with live music, colorful wardrobe &
cultural choreography
Floating Gardens of Xochimilco – The canals feature
historical buildings and rare animals
An hour away from the city are the Teotihuacan
pyramids or Tepoztlán (a small town with a beautiful
mountain range)
Museo Nacional de Antropología – world-renowned
museum and the largest in Mexico
Zócalo
LOCAL LANGUAGE WORDS AND PHRASES
The official language in Mexico is Spanish
Yes/No
Si/No
Good morning/
afternoon/evening
I’m sorry
Buenos días/
Buenas tardes/noches
Lo siento
Stop
Pare (pah-rey)
Money
Dinero
Please
Por favor
Thank you/You’re welcome
Gracias/De nada
Help
Ayuda
Hello
Hola
I don’t speak Spanish
No hablo español
Ballet Folklórico
TRAVEL ADVISORIES
Nationwide risk level:
• Exercise a high level of caution, as crime levels remain
high and protests are not uncommon
• A travel health notice is in place for the Zika virus
Regions to be avoided:
• Northern states (Chihuahua, Coahuila, Durango, Nuevo
León (excl. Monterrey), Sinaloa (excluding Mazatlán),
Sonora (excl. Hermosillo, Guaymas/San Carlos),
Tamaulipas, due to high levels of violence linked to
organized crime
• Western states (Guerrero (excl. Ixtapa/
Zihuatanejo,Taxco), Michoacán (excl. Morelia), Jalisco,
Colima (near Michoacán), due to the high levels of
violence and organized crime
For more information, visit the Government of Canada Travel
Advisory page HERE or at bit.ly/2j8XgC8
*Disclaimer
The information contained within this booklet is intended to convey high level business and travel information for the Mexican market, but should be used only as
a starter guide. For more detailed information, please contact the consulate or trade commissioner service. Please send over any feedback that you may have to
[email protected]. This package was updated on 03/04/2017.