Cohen International, Doing Business in Mexico

Mexican Opportunities: Getting Your Foot in the Door

Journalists often call for comments on issues in the news, "how-to" information, and tips of the trade. Here is a recent essay for which Cohen International was interviewed.

"Federal Procurement Update: Independent Report on Government Contracting"

Looking to bolster your US business?

Don't forget to look south of the border.
Since 1992, the North American Free Trade Agreement (NAFTA) has turned Mexico into a more open and fair market for US firms to do business, says Roger S. Cohen <roger @ rogercohen dot com>, president, Cohen International, Upper Nyack, New York. Right now, the economy is starting to boom..

The best tip: Get your feet wet first.
Sell your supply or service in the private market or public arena before going to work for the Mexican government. The Maquiladora Program is a good start. Under this program, a company has a production facility in the US and a corresponding facility in Mexico, says Cohen. You can assemble or manufacture any product on both sides of the border without having to worry about taxes or duties. For more information, call the Mexico's commerce secretariat (Secofi) (202-728-1776).

Other tips:

Do basic market research.
Making contacts in Mexico that can help you sell your product is an important step, says Cohen. You can do this research in the states by checking manufacturing directories, economic development groups and institutions. Large US banks have financial dealings with Mexican firms and can introduce you to potential Mexican partners. For a list of American banks authorized to operate in Mexico, call the Mexican Investment Board at (212) 821-0383, or email conmexny@quicklink.com.

Team with a Mexican firm.
Partner with a local Mexican firm that complements your abilities, says Kevin Brennan, commercial service, US Embassy, Mexico City. If you eventually do government work, it's a requirement to establish a Mexican presence either through a Mexican firm, or by establishing your own. All Mexican businesses are required to register with the US-Mexican Chamber of Commerce (011-525-709-1559), so you can get a ready database of potential partners.

Visit the site.
Don't assume that your product or service will be accepted with the same enthusiasm it is in America, says Cohen. Visit the locality where you'll be manufacturing your product and make sure it's adaptable. Touch base with your partner firm and see if it can help adapt your product to the Mexican economy.

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