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Possible obstacles for Swedish companies include corruption and fraud, and it is important to always ask for professional advice if there is any uncertainty. Because of this, most major automotive companies and key suppliers have manufacturing facilities in Mexico, which means potential business opportunities for Swedish subcontractors. Additionally, in 2020 Mexico´s manufacturing cost of labour per hour was USD 1.68 cheaper than that of China. Currently, Mexico`s has the 7 th largest labour force in the world. Moreover, Mexico's key attractiveness factors are the country’s skilled workforce, cost competitiveness and effective labour relations. Foreign investments in Mexico have surged in the past ten years, especially in the automotive industry. There is also a growing need for solutions within security and the environmental sector as well as health care and medicine. Mexico offers great potential in several sectors where Sweden is an industry leader, including automotive, mining, energy, IT and telecoms.
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Possibilities for Swedish companies IN MEXICO Already today, many companies manufacture products in Mexico that are sold across the Americas. Being a member of USMCA has also made the country more attractive from an investment perspective. Mexico is Sweden’s second largest export market in Latin America and the free trade agreement between the EU and Mexico has significantly improved the trade balance. With these agreements, Mexico shifted from an import substitution industrialisation model to a free trade economy which has had positive impacts on the country’s economic growth. In 1986, Mexico joined the General Agreement on Tariffs and Trade (GATT) and in 1994, the North American Free Trade Agreement (NAFTA). In addition, Mexico is the region’s leading manufacturing nation after the United States and is leveraging new opportunities as the nearshoring trend accelerates.
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This is partly reflected by its comprehensive trade policy which covers over 50 nations – more than any other country in the world. Mexico benefits from a geographically strategic position that provides a link between North and South America. It is also the largest Spanish speaking country in the world. With a gross domestic product of USD 1 300 billion and a population of more than 130 million, Mexico is the 15th largest economy in the world.
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