If you are an entrepreneur or small or medium sized business, you will find a range of information and expert professional advice you need to set up a business in Mexico. Need professional advice? Potential investors are advised to consult one of our professional services member firms at an early stage as they will be able to ensure that all relevant matters are identified. To consult our Mexican member firms, please click here. If you require professional advice in a city not listed in our International Directory, please contact the MSI Secretariat directly.   Mexico fast facts GDP (PPP) US$1.353 trillion GDP per capita (PPP) US$12,500 GDP real growth rate 3% Inflation 3.8% Local currency Mexican peso (MXN) Exchange rate 10.8 MXN :1 US$ Capital city Mexico City Population 109,955,400 (July 2008 est.) Ethnic groups mestizo (Amerindian-Spanish) 60%, Amerindian or predominantly Amerindian 30%, white 9%, other 1% Languages Spanish, various Mayan, Nahuatl, and other regional indigenous languages Religion Roman Catholic 76.5%, Protestant 6.3% (Pentecostal 1.4%, Jehovah's Witnesses 1.1%, other 3.8%), other 0.3%, unspecified 13.8%, none 3.1% (2000 census) Area size 1.9m sq. kilometres Top import sources US 50.9%, China 9.5%, Japan 6%, South Korea 4.2% (2006) Top export sources US 84.7%, Canada 2.1%, Spain 1.3% (2006) Unemployment rate 3.7% plus underemployment of perhaps 25%

All figures as of 2007 unless stated.

Economic overview
Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. In 2007, during his first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass a pension and a fiscal reform. The administration continues to face many economic challenges including the need to upgrade infrastructure, modernize labor laws, and allow private investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and creating jobs.

International trade
The signs are good - Moody's recently raised Mexico's international credit rating to investment grade. A further surge in foreign direct investment is already in progress as multi-nationals prepare to exploit the opportunities arising from the EU/Mexico free trade agreement. Mexico is a member of both the WTO and of the OECD.

Legal and judicial system
In Mexico, business problems and disputes between individuals or between individuals and companies are solved through litigation based on civil law. However, the Mexican government has institutions functioning as arbitrators or mediators to avoid that such disputes are solved in the judiciary system. The intervention of these institutions allows conducting business operations despite lawsuit or claims that companies may have. Tax cases are handled by the federal tax court.

Judiciary power resides in the Supreme Court of Justice which has 21 members, appointed by the Senate. It also has circuit courts and district courts. The main political parties in Mexico are: PRI (Partido Revolucionario Institucional); PAN (Partido Accion Nacional) which is the second largest political force in the country; PRD (Partido de la Revolucion Democratica) the centre-left alternative; and PT (Partido del Trabajo), the left wing party.

Government
Mexico is a democratic and federal republic divided into 31 states with free and separate state governments and a federal district. The federal is divided into government three powers: the executive, the legislative, and the judicial.

Executive power is held by the President, elected for a six-year term and may not be re-elected. The President appoints the members of his cabinet under approval of the Senate. Legislative power is vested in two bodies elected by direct popular vote. The Senate, comprises of three members from each State, including the Federal District, elected for six year terms. The other body is Congress, whose Deputies each represent 170,000 citizens. Deputies are elected for three-year terms.

Information obtained from The CIA World Factbook and the Economist, May 2008

More information...
For more specific information on doing business in Mexico, you can download our own Doing Business in Mexico guide (June, 2005).