B.C. and Mexico: Maximizing Trade & Investment

The World Trade Centre Vancouver recently partnered with the Consulate General of Mexico in Vancouver and the Province of British Columbia (B.C.) to host a market information session focused on trade and investment opportunities between Canada and Mexico. This event highlighted the growing potential for collaboration under the Canada-Mexico trade framework and explored opportunities for local B.C. businesses to expand their reach within the North American market.

The event featured key insights from prominent leaders, including Olga Beatriz Garcia Guillen, Consul General of Mexico in Vancouver, and the Honourable Diana Gibson, Minister of Jobs, Economic Development, and Innovation for British Columbia. Both shared valuable perspectives on Mexico’s role as a critical trading partner for Canada and discussed the evolving trade dynamics that could benefit businesses in the region.

“We already have two ambitious free trade agreements [Canada United States Mexico Agreement (CUSMA) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)] that cover virtually all sectors and aspects of trade between Canada and B.C. and Mexico to reduce trade barriers and facilitate the integration of our supply chains. Two years ago the B.C. government launched a Trade Diversification Strategy. Mexico, along with Taiwan and Vietnam, were the three immediate high potential markets identified in this strategy.” Minister Gibson

Quick Facts:

In recent years, Mexico has become an increasingly important market for Canadian exports, particularly for goods originating from British Columbia.

• In 2024, Mexico ranked as the 19th largest destination for B.C.-origin exports.
• Mexico ranked as the 5th largest destination for Canadian exports, accounting for 1.1% of Canadian goods exports.
• Mexico is Canada’s 3rd largest source of imports, supplying 6.2% of Canada’s total imports.

These figures underscore the importance of Mexico as a key trading partner for both B.C. and Canada at large. As Canada continues to deepen its trade ties with Mexico, opportunities for B.C. businesses to engage with the Mexican market are likely to grow.

Investment Opportunities for B.C. Businesses

One of the central themes of the event was the exploration of investment opportunities. Mexico’s growing economy and its strategic position within North America make it an attractive destination for businesses looking to expand their footprint. The trade session provided attendees with the tools and insights needed to navigate the investment landscape and leverage opportunities to strengthen their businesses.

Guest speakers and panelists at the event emphasized the importance of collaboration between both countries. By understanding the local market conditions and regulatory environments, businesses can access key sectors, such as manufacturing, agriculture and technology, where investment potential is particularly strong.

Key Takeaways and Advice for B.C. Businesses Interested in Mexico

1. 1. Types of Banks in Mexico
      Mexico has two types of banks: Corporate and individual. Businesses should thoroughly research the corporate bank they plan to work with before opening an account to ensure it meets their needs.
   2. Mexico as an Attractive Investment Destination
      Mexico offers a favourable investment climate with inflationary adjustments built into its tax regime. The country is politically, socially and economically stable, and its position as the second-largest economy in Latin America makes it a strong investment choice.
   3. Demographics and Workforce
      Mexico has a skilled workforce, with most of the population under the age of 30. This demographic provides businesses with a large pool of talent, which is a significant advantage for companies looking to expand into the market.
   4. Mexico’s Strategic Location for Global Trade
      Mexico’s central location makes it ideal for global trade. It’s well-connected by sea, land and air, and Mexico City serves as a major hub for international shipping, offering easy access to both North American and global markets.
   5. The Role of the B.C. Office in Mexico
      Mauricio Dávila, Managing Director of the Mexico B.C. Trade & Investment Office, highlighted the office as a key resource for facilitating partnerships and market access. The office focuses on sectors like agrifood, aerospace and clean tech, helping B.C. businesses expand into the Mexican market. Dávila emphasized that B.C. businesses should leverage this resource and to learn about the Mexico market. He noted the growing middle class in Mexico, which is increasingly demanding higher-quality products and services, providing an additional reason for businesses to consider exporting to Mexico.
   6. Building Relationships in Mexico
      Panelists advised that companies should take their time to understand the market and build relationships, particularly when entering the market through a distributor. They highlighted the importance of patience and careful planning in developing a strong foundation for long-term success. It was also recommended that businesses consider participating in programs like the Trade Accelerator Program to become export ready. This initiative can help companies understand the specific requirements of exporting and build the necessary relationships to succeed.
   7. Multiple Paths to Market Entry
      Graeme Lempriere, CEO of CleanSeed Capital Group, the second Canadian company panelist at the event, emphasized the importance of finding a local partner with a strong foothold in the market and a solid reputation. He recommended working with a partner who not only has the ability to distribute products but also the potential to scale operations and manufacture locally in the future.

B.C. Businesses Looking to Expand:

Two attendees shared their insights and advice after the event, offering valuable perspectives and expressing their interest in doing business in Mexico.

“I found the event to be a great chance to learn about the organizations and businesses in Vancouver and more broadly in Canada that support business expansion in Mexico at every stage – from initial market intelligence through development and growth. I also found the speakers’ insights on cultural nuances to be enlightening, to help better position our approach as we explore this market.” Amy Jancewicz, Business Program Manager, CropVue Technologies

“From the event, I learned that building relationships and trust is key in Mexico before doing business. Brokers are typically small companies, so it’s important to engage them before negotiating with buyers. Additionally, opening a bank account takes time, and while there’s a rising middle class interested in premium Canadian goods, language barriers may be a challenge as not everyone speaks English.” Neelam Toprani, President & CEO Padmashri Naturals Inc.

As the trade dynamics between Canada and Mexico continue to evolve, businesses looking to take advantage of these opportunities should stay informed and explore new avenues for collaboration and investment.

For more information on how to maximize opportunities between Mexico and B.C. contact trade and investment representatives in Mexico City.