What if Mexico were the best ally for conquering the Americas?

Mexico is often reduced to the image of a low-cost outsourcing hub. This is a simplistic and increasingly inaccurate view. With a population of 130 million, as the world’s twelfth-largest economy, the United States’ leading trading partner, and a gateway to 650 million Latin American consumers, Mexico is one of the most strategic markets for European companies looking to expand across the Americas.

This is the assessment made by Thomas Gauquelin, CEO of Totzpa Consulting and a Globallians expert on Mexico and Latin America, during a recent webinar. Here are the key takeaways.

2026: A Pivotal Moment for Mexico

The Modernization of the EU-Mexico Trade Agreement

The free trade agreement between the European Union and Mexico, signed in the 2000s, has just undergone a major overhaul. The vast majority of consumer goods and industrial products were already subject to zero tariffs. What’s new: specialty products that were previously subject to tariffs—such as cheeses, wines, and spirits—now have their tariffs reduced to zero. The agreement also strengthens the protection of protected designations of origin, both European and Mexican (this is particularly the case for tequila).

For French companies in the agri-food, wine, and spirits sectors, this opens the door to the Mexican market, with development opportunities to be seized right away.

The USMCA Renegotiation: Tensions That Create Opportunities

The USMCA treaty, which binds Mexico to the United States and Canada, is open to renegotiation every six years. Against a backdrop of U.S. protectionist policies and a desire to reduce dependence on China, the United States is seeking to reconfigure its supply chains to protect its industry. This U.S. protectionism is pushing Mexico to diversify its partners and paving the way for new European entrants.

The Ambition of Plan México 2030

Mexico no longer wants to be seen as a country of subcontractors. Its stated goal is to become one of the world’s top 10 economic powers by 2030 by increasing value added, developing a cutting-edge technology sector, and investing heavily in its infrastructure: $257 billion in planned investments by the end of the decade. The Mexico 2030 Plan explicitly aims to transform the country through an integrated and self-reliant industrial sector.

Mexico by the Numbers: What You Need to Know Before Entering the Market

With a population of 130 million and a median age of 30, Mexico has a dynamic demographic profile and a growing domestic market. Its GDP is comparable to that of South Korea or Australia and even exceeds that of Spain, with stable growth ranging from 1% to 3% in recent years and well-controlled inflation. Mexico ranks 4^th among countries that have signed the most trade agreements: 14 free trade agreements link Mexico to 52 different countries.

Some key facts:

• Latin America’s second-largest economy and the region’s second-largest recipient of foreign direct investment (FDI).
• The average annual salary is $24,000 (in purchasing power parity).
• $40 billion in FDI recorded in 2025—a record high—with 411 new companies established and 477 industrial parks created.
• A high-value-added market estimated at approximately 20 million consumers, concentrated in major metropolitan areas.
• Mexico is the United States’ leading trading partner, with 80% of its exports destined for its northern neighbor. Each year, the two countries trade more than $840 billion, and 16% of U.S. global trade passes through Mexico.
• More than 37 million Mexicans live in the United States, creating fundamental economic and cultural bridges.

Geographically, the country covers an area 3.6 times the size of metropolitan France, with significant regional disparities. This vast territory is a factor that should not be overlooked in any deployment strategy.

Mexico’s Underestimated Industrial and Agri-Food Power

Agri-Food: Massive Mexican Exports

Mexico is the world’s leading exporter of avocados, beer, chili peppers, tomatoes, berries, cucumbers, and limes. Tequila, the country’s iconic product, is exported to more than 120 countries.

Industry: The Engine of Mexican Competitiveness

Mexico’s industrial sector is a major asset for the country. In fact, Mexico is the world’s fifth-largest producer of light vehicles, more than 90% of which are exported. It ranks fourth globally in automotive parts and twelfth in the aerospace sector, a rapidly growing industry. It is also the world’s second-largest producer of televisions and ranks among the major players in consumer electronics.

Mexico as a Hub for the Americas: The Advantage of Nearshoring

Privileged Access to Over One Billion Consumers

Thanks to the USMCA, Mexico offers direct access to the U.S. and Canadian markets—representing over 500 million consumers—with short logistics lead times. It also serves as a gateway to Latin America and its 650 million consumers. Few countries in the world offer connectivity on this scale.

Nearshoring: A Long-Term Structural Trend

The restructuring of global value chains—accelerated by U.S.-China tensions—has propelled Mexico to the forefront as a preferred destination for industrial reshoring. The phenomenon of nearshoring—which involves moving production closer to consumer markets—directly benefits from Mexico’s geographic location and its trade agreements.

Investment is concentrated in five key states that form the country’s economic heartland: the State of Mexico, Nuevo León (Monterrey), Jalisco (Guadalajara), Guanajuato, and the Bajío region.

Infrastructure Under Transformation

Mexico has invested heavily in education and technology hubs: more than 130,000 engineering graduates per year in Guadalajara and Monterrey. Production costs remain competitive, 30% lower than those in the United States. The country has a well-developed air and port network, as well as an ambitious inter-oceanic corridor project aimed at competing with the Panama Canal. With more than 50 free trade agreements, Mexico is one of the world’s most open markets, alongside its membership in the OECD and the G20.

France in Mexico: A Strong Presence to Build On

France has not always had a natural orientation toward Mexico. Yet today, it has a solid foothold there: 700 subsidiaries of French companies, more than 600 French entrepreneurs operating in the country, and 190,000 direct jobs created. France is the second-largest European employer in Mexico. Thirty-eight CAC 40 companies operate there, and several major French conglomerates have chosen the country as the regional headquarters for their operations in the Americas.

Growth Sectors: Where European Companies Can Make Their Mark

Industries and Equipment

There are significant opportunities in industrial automation, the rapidly expanding aerospace sector, the automotive industry, and the entire supply chain supporting these sectors.

Technology and Digital

Demand is strong for data centers, cybersecurity, and connected solutions. Mexico is actively seeking to reduce its technological dependence on Asia, which presents an opportunity for European players in the sector.

Agri-Food and Lifestyle

France enjoys a particularly strong premium image in Mexico in the agri-food, cosmetics, and high-end consumer goods sectors. Notably, Mexico is one of the few markets in the world where consumption of wine and spirits is growing, driven in part by U.S. tourism. The modernization of the EU-Mexico agreement further strengthens this potential.

Healthcare and Pharmaceuticals

Medical tourism is growing rapidly, fueled by sustained development of private healthcare infrastructure. Several major French pharmaceutical groups are already established in Mexico, a sign of a mature and expanding market.

How to Succeed in Expanding into Mexico?

Invest in Relationships

Mexican business culture places a deep value on relationships built on trust. Spending time with clients and partners, honoring commitments, and building a long-term presence are prerequisites, not options.

Treat Mexico as a Market in Its Own Right

The distances, cultural nuances, and economic dynamics specific to each market require a country-by-country strategy. Mexico deserves its own roadmap and an in-depth understanding of local realities.

Choose Your Local Partner Carefully

Rushing into a joint venture or direct collaboration without a clear understanding of the local landscape is one of the most common mistakes. It is essential to take the time to meet with potential partners, visit their facilities, and thoroughly verify their references.

Don’t base your offering solely on price

Mexico is actively investing to move beyond its “low-cost” image. The premium market exists and is growing. Basing your offer solely on price means missing out on the most promising and sustainable market segments.

Conclusion: Mexico at the Heart of Your Development Strategy in the Americas

Mexico is a market of 130 million people, a leading industrial and logistics hub, a gateway to the Americas, and a country redefining its place in the global economy. For European companies that know how to approach it with a methodical approach, patience, and a genuine local strategy, it represents one of the most solid opportunities to establish a lasting presence in the Americas.