Making it big in Mexico!

With the second-largest economy in Latin America, Mexico should be a core focus for UK exporters looking at the region

While Mexico is currently the world’s 15th-largest economy, the World Bank has predicted it will become the fifth largest by 2050. Its Gross Domestic Product (GDP) per capita is larger than countries such as Brazil, Russia, India and China, and, off the back of its fast growth, Mexico is edging up the list of countries that UK businesses should be looking to export to.

Mexico is about the same size as Western Europe, with a population of over 120 million, and is the second largest economy in Latin America after Brazil. The country has a Free Trade Agreement (FTA) with the European Union (including the UK) and free trade access to the US. In fact, Mexico has more free trade agreements than any other country, with potential market access of up to 60% of the world’s GDP.

Santander firmly believes that Mexico represents an exciting opportunity for UK firms: UK-Mexican relations are at an all-time high and the country is a perfect partner for growth-centric businesses looking at the Americas.

For instance, given its geographical location and numerous FTAs, which provide significant global market access, Mexico is fast becoming a major regional hub for the manufacturing industry – and local firms are increasingly looking for international suppliers, partners and customers.

Santander is dedicated to helping UK businesses to export and seize these sorts of international trading opportunities. At the start of March, Santander took five UK manufacturers – all based in the South West, with most focused on the food and drink sector – on one of our trade missions to Mexico. We regularly run trade missions to countries around the world: other recent destinations have included Poland, the UAE, Chile and the US.

The trade mission to Mexico saw the five attending UK businesses meet with a number of local distribution firms and supermarket chains, as well as have one-to-one meetings with importers that might potentially be interested in their products. The trade mission also helped them understand and appreciate the benefits and challenges they may face – such as the language barrier and foreign exchange considerations as well as any cultural nuances and business customs.

These sorts of trips and meetings are invaluable to SMEs making the decision to export, particularly to a market such as Mexico that may feel remote and unfamiliar to UK business owners. Santander is passionate about helping firms to export, and we believe Mexico will become an increasingly core trading partner for the UK.

We offer a range of workshops, events and trade missions. See what’s coming up.

 

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John Carroll - Helping businesses achieve International success. Head of Product Management & International Business, Santander UK

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