Starting a manufacturing operation in a new country can be a daunting task because it requires a deeper understanding of that country's laws, infrastructure and culture, to name a few. It is important for companies to to understand Mexican regulations and standards when it comes to establishing an operation.
For businesses considering transitioning entirely or expanding to Mexico, knowing the main Mexican governmental agencies that regulate manufacturing in the country helps make operation processes easier. There are six agencies all businesses should be aware of:
1. Department of Foreign Ministry
The Mexican Department of Foreign Ministry explains its mission and vision are to deepen the country's economic, political, cultural and cooperative affairs with other countries. This governmental organization is largely responsible for maintaining diplomatic relations with countries in order to foster offshoring within its borders.
2. Department of Labor and Social Security
This department is especially important to manufacturers, as Mexico's workforce is one of the country's main draws for the sector. It is involved in implementing labor laws that protect Mexican workers and ensuring Mexican citizens have access to manufacturing jobs.
3. Department of the Treasury
The Department of the Treasury is responsible for issues of finance and economy surrounding manufacturing in Mexico. This organization will be largely involved in ensuring the legality of goods as well as compliance from manufacturers. For example, in the past, the U.S. Department of Treasury worked with Mexico's Department of the treasury as well as other governing bodies to improve tax compliance.
4. Department of the Environment and Natural Resources
The Mexican government has a vested interest in maintaining the environmental health of its country. Bloomberg Business reported in March that Mexico became the first developing nation to formally promise to reduce pollution tied to climate change - the country pledged to cut carbon emissions 25 percent by 2030. Overall, this government body is responsible for upholding laws that protect, restore and conserve natural ecosystems in the country. It will work to ensure manufacturers are in compliance with environmental law.
5. Department of Economy
The Mexican Department of Economy is responsible for ensuring trade activities within the country are legal and beneficial to the country's economic interests. This organization also focuses on improving the country's competitiveness by creating jobs and infrastructure, which has a direct positive impact on manufacturers in Mexico and adds to the country's offshoring advantages overall.
6. Department of State
Mexico's Department of State is also important for manufacturers, because it is this governmental body that will protect the safety of businesses operating within the country and ensure all goods moved within and outside of the country are done so in a way that does not threaten national security. This organization has also worked to create safer, more positive conditions for manufacturers in Mexico.
Manufacturing in Mexico is rife with benefits. Free trade agreements such as NAFTA, affordable and skilled labor, advanced infrastructure, and proximity to key markets in North and South America are a few advantages. It is smart to have a high-level understanding of a country's political structure and governing bodies before beginning your manufacturing operation in Mexico.