Thanks to its proximity to the United States, Mexico has become an attractive investment hub. Mexico’s manufacturing capabilities align well with this trend, positioning the country favorably to seize the opportunity. We hope that this guide will give you an initial perspective into the fundamentals of ramping up operations in Mexico.
In recent years, we have seen a significant increase in Custom Audits by both Federal and State Tax Authorities, mainly to companies with foreign investment. In this Quick Chat video, our International Commercial partners in Mexico along with the Managing Partner for Baker McKenzie’s Mexico offices discuss what to expect from an audit, the consequences including financial liability and the preventive measures Mexican companies must take.
“Nearshoring” in Mexico is currently a hot topic for multinational companies considering moving business and manufacturing closer to home. COVID-19-era global supply chain disruptions and changes to the global economy are causing companies to reexamine their sourcing options and relocating to Mexico has much appeal. According to an analysis by the McKinsey Global Institute, in 2021, American investors put more money into Mexico – buying companies and financing projects – than into China.
The Mexico Ministry of Labor and Social Welfare has announced that it will carry out an estimated 42,000 inspections in 2023. The inspections carry the possibility of significant fines and penalties issued on per employee/ per violation. It is imperative for employers to train personnel and response teams on best practices for managing potential inspections and mitigating risk, including maintaining all necessary information and documents that must be supplied during an inspection.
In this Quick Chat video our Labor & Employment lawyers along with the Managing Partner for Baker McKenzie’s Mexico offices discuss the inspection program and provide tips to help employers prepare.
Download Baker McKenzie’s latest “Doing Business in Mexico” publication, which looks at foreign investment law, competition law, IMMEX, the Maquiladora Program, company law, taxes, international trade, labor law, the environment, intellectual property, and real estate.