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Investment climate

Foreign investment in Mexico has seen a steady increase in recent years and now stands at over $30 billion. The largest investor, by far, is the United States, which accounts for over 60% of all outside investment. Amongst others are Japan with $2 billion. The largest investments are in the manufacturing and industrial sector (around 60% of the total) and services (around 30%). Today Mexico is one of the youngest economies in the world with approximately 55% of the population under the age of 20, while a mere 4% is 60 years of age or older. The CONACYT is the key governmental organisation responsible for fostering S&T in Mexico.

Mexico's economy is open in this regard, due to the requirements of its membership in the NAFTA and its accession to the OECD. In general, capital and investment transactions, remittance of profits, dividends, royalties, technical service fees, and travel expenses are handled at the market-determined exchange rate.

The foreign investment law eliminates such restrictions as export requirements, capital controls, and domestic content percentages,which are prohibited under the NAFTA. Most foreign investors operate in Mexico through corporations(Sociedades Anonimas de Capital Variable). Foreign-owned corporations are subject to the same laws as local companies andany special regulations governing foreign investment.