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Doing Business in Mexico 2015

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61 Doing Business in Mexico 2015 Chapter 8 Exporting to Mexico Tips for exporters Mexico's commercial conditions provide an excellent business environment and investment opportunity: Mexico is a member of the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation Mechanism (APEC) and the Organization for Economic Cooperation and Development (OECD). Mexico constitutes an excellent potential customer for exporters, with its developing economy and a population of over 110 million. Mexico lies in a strategic geographical location for international trade, sharing borders with the United States of America, while facing Europe and Asia, and representing an easy entry to the rest of Latin America. Mexico has signed ten Free Trade Agreements (FTAs), which provide for preferential duty rates on foreign trade operations with 51 countries, plus 30 Agreements to promote and protect foreign investment (APPRIs) and 9 Commercial Agreements under ALADI. FTAs signed by Mexico include NAFTA 1 ; Central America Free Trade Agreement (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua), FTA with: Colombia; Chile; Uruguay the European Union 2 ; Israel; the European Free Trade Association 3 , and Japan. General Import Duty rates range from 0% to 35%, but most imports fall within the range of 3% to 20% (exceptionally, certain food products, shoes and textiles pay higher duties). Temporary imports are exempt from customs duties (except for fixed assets) and will pay value-added tax as of January 2015. However, if certain requirements are met, it is possible to obtain an automatic tax credit for such VAT. Mexico offers information through official and private commercial delegates worldwide. 1 North America Free Trade Agreement. 2 Austria, Belgium,Bulgaria, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Romania, Spain, Sweden, the United Kingdom, Cyprus the, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. 3 Iceland, Norway, Liechtenstein and Switzerland. 8

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