Doing Business

Doing Business in Mexico 2015

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16 Tax and Legal Services - PwC Mexico Focus of government policy For many years the focus of Mexican government policy has been to raise the living standards of its people, promoting industrialization and creating jobs for the fast growing population to reduce under- and unemployment levels. President Enrique Peña Nieto's administration has similar goals, but has embarked in a historically unprecedented reform to modernize the country in all sectors. Reforms have been proposed or passed in education, energy, telecommunications, political administration, tax, health, labor, among many others. Economic development plans The Mexican government implemented an economic development plan to achieve industrial development and expansion and increase exports, in order to decrease dependence on oil revenues, at the same time reducing and maintaining inflation at competitive levels. To attain these goals, Mexico opened up its economy by joining the General Agreement on Tariffs and Trade (GATT) (now the World Trade Organization– WTO), eliminated trade barriers and reduced tariffs, adopted a reprivatization policy, and relaxed foreign investment restrictions. In addition, Mexico has in place several free-trade agreements such as the North American Free Trade Agreement (NAFTA), with the European Union, with Japan and with many other countries which represent strategic investment or market opportunities. Regional/special industry development Some State governments are willing to grant incentives to attract new industries to specific areas within their borders, often in the form of reduced prices for land for industrial use and reductions in property and payroll taxes. Free-trade zones There are no free-trade zones in Mexico. However, limited duty-free zones are maintained in the entire states of northern and southern Baja California, the city of Agua Prieta, a triangular area in the state of Sonora, and certain areas in the southern part of Mexico. Materials and goods, with certain exceptions, may enter the zones free of duty, unless they are to be shipped to other parts of Mexico. Financial services Trade agreements and Foreign Investment Law reforms have significantly reduced limitations to foreign investment in the financial services industry. Thus the Mexican banking system is now operated mainly by international financial corporations, such as Citibank, HSBC, BBVA, Santander, etc.

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