Mexico is highly dependent on imports. In 2017 alone, the country imported some $420 billion worth of services and products, representing a full 39.7% of the country’s GDP. The Mexican market value-proposition is characterized by a large economy, steady growth and business friendliness. These attributes render the country highly attractive for foreign investment, and trade. However, sluggish bureaucracy, regulatory gaps and outdated legal frameworks that are no longer fit-for-purpose are limiting growth for many Swedish companies presently operating in the country. Despite those obstacles, many of Sweden’s peers seem to be managing to seize opportunities and deliver closer to their full potential.
The following challenges have a strong impact on the growth of Swedish companies present in Mexico:
- Bureaucratic inertia: as an emerging economy, Mexico tends to require going through long and unnecessarily cumbersome processes to secure
operating permits, import licenses, and participation in tenders
- Incomplete legal frameworks or obsolete Laws: in a survey conducted during Q4, 2018 by Business Sweden,66% of respondents mentioned that the lack of proper regulations, or inadequate frameworks, had a direct effect on their growth.
- Industry Trends, for example sustainability and public perception: Mexico lags behind in the adoption of aligning with international norms and global trends, hindering the potential of Swedish companies that are well known for their innovation.
Read more about opportunities and hurdles for Swedish companies in our report.