Mexico

Mexico is an independent country in the southern part of North America, located south of the US border, at the widest part of the isthmus that connects the two continents of North and South America. The most populous Spanish-speaking country, it is a land with a rich history of ancient civilizations such as the Mayans and Aztecs. Mexico is also a country with a diverse natural environment, from the Sierra Madre mountains to the beaches of the Caribbean Sea and the Pacific coast.

The official name of the country is the United Mexican States. The total area of Mexico is 1,972,550 km2 (13th in the world), including about 6 thousand km2 of islands in the Pacific Ocean (including Guadalupe Island and the Revillagigedo Archipelago), the Gulf of California and Mexico, and the Caribbean Sea.

The country's population is about 130.00 million people (as of 2025). The modern ethnic composition includes representatives of three main groups: Europeans, local Indians, and Africans. Whites make up 5%, mestizos 63%, Amerindians 30%, and other groups (Asians, mulattos, and Afro-Mexicans) 2%.

The Mexican government recognizes 69 distinct indigenous languages (from seven different families and four other language isolates) as national languages in addition to Spanish. Spanish is the de facto national language of Mexico, spoken by the majority of Mexicans, although it is not designated as an official language by law. Article 2 of Mexico's Constitution defines the country as multicultural, recognizing the right of indigenous peoples to "the protection and development of their languages, as well as the promotion of "bilingual and intercultural education." 93.8% of the country's population speaks only Spanish, 5.4% speak Spanish, and 1.5% speak Spanish. Spanish and some Indian language, 0.8% know only the language of local Indians.

Catholics make up 78% of the population of Mexico, Protestants - 11.2%, other faiths - 10.8%.

The official currency of the country is the Mexican peso.

Mexico City is the capital of Mexico, the largest political, economic and cultural center of the country, belongs to the global cities “alpha” and the leading financial centers of North America. The economy of Mexico City, like all of Mexico, is export-oriented. The largest enterprises in the city are related to trade, transportation and manufacturing, especially the automotive and aerospace industries.

The agglomeration of the city of Guadalajara is the second most populous in Mexico after Mexico City. The city is known as the Pearl of the West (Spanish: La Perla del Occidente) and the City of Roses (Spanish: Ciudad de las Rosas). Guadalajara is the main economic, transportation and cultural center of southwestern Mexico. In the GaWC ranking of global cities, it is recognized as a gamma city, ranking alongside Almaty, Phoenix and Vilnius.

About 60% of the economically active population of Guadalajara are employed in trade, services and the tourism sector. The most developed industrial sectors are electronics production, textile and footwear industry, food production, brewing, auto parts and metal tools. Most of the goods produced in the city are exported to the United States. The city is called the Mexican Silicon Valley. In Guadalajara and its suburbs, there are factories of such high-tech companies as General Electric, Intel, Hitachi, Hewlett Packard, Siemens AG, Flextronics and Solectron. Guadalajara is also an important tourist center.

Puebla de Zaragoza is one of the main economic, political and cultural centers of the country. In 1987, it was declared a World Heritage City by UNESCO.

The basis of the city's economy is industry, which creates more than 80% of GDP. The main industries are:

• textile
• footwear
• food
• chemical
• metallurgy
• auto parts production

The city's largest employers are the Volkswagen and Hylsa auto parts factories. Tourism plays an important role in the city's economy.

Ciudad Juárez (formerly known as Paso del Norte, locally known as Juárez) is a city in Mexico in the northern part of the state of Chihuahua. Ciudad Juárez is a major entry and exit point to the United States in central northern Mexico.

The city is a growing industrial center with more than 300 maquiladoras (assembly plants) located in and around the city. The main factors determining the city's economic development are its proximity to the United States and the availability of a large pool of cheap labor. Due to this, the main sectors of the city's economy have become:

• tourism
• service sector
• light industry
• assembly of cars and household appliances
• food industry

ADC Telecommunications, Electrolux, Bosch, Siemens, Foxconn, Flextronics, Lexmark, (electronics and electrical engineering), Johnson Controls, Visteon, Lear Corporation, Yazaki (automotive components), Boeing (aerospace equipment), Cardinal Health (medical equipment), Delphi Corporation, Sumitomo and several other foreign companies have chosen the city for their business activities.

Monterrey is the capital and largest city of the northeastern state of Nuevo León in Mexico. The Monterrey metropolitan area is the third largest in the country after Mexico City and Guadalajara. The city is also known by the nicknames La sultana del norte (The Sultan of the North) and La ciudad de las montañas (The City of the Mountains).

Monterrey is the main industrial, commercial, and financial center of northern Mexico, with a strong, diversified economy. The city has repeatedly ranked among the top cities in Latin America in terms of business attractiveness. Monterrey's main industries are:

• CEMEX cement plant
• ferrous metallurgy
• cement and building materials production
• glass industry
• brewing
• auto parts production
• petrochemicals
• food industry
• banking
• retail trade

The city is home to the headquarters of such Mexican companies as Cemex (the world's 3rd largest cement producer), Vitro (glass production), FEMSA (the largest soft drink producer in Latin America), ALFA (petrochemicals, telecommunications, food products), Axtel (telecommunications), Selther (the largest mattress and pillow producer in Latin America), Gruma (the world's leading corn flour) and Banorte (Mexico's largest bank). Due to the proximity of the US-Mexican border, the city's economy and life are closely tied to the US, and Monterrey is often called "the most American of Mexican cities."

Mexico is administratively divided into 31 states (Spanish: estados) and Mexico City, the capital of the republic (Spanish: capital de la república), collectively called federal entities (Spanish: Entidades federativas). The states are divided into municipalities (municipios), the number of which, depending on the population and size of the state, can vary from a few to hundreds.

Modern Mexico was the cradle of many ancient civilizations. In the 12th-5th centuries BC, the Olmec culture flourished here, which had a significant influence on the formation of later classical civilizations of Mexico: the Teotihuacan culture in the territory of the present-day State of Mexico; the Zapotecs in Oaxaca with the center of Monte Alban and the Mayan culture on the Yucatan Peninsula with the capital Chichen Itza. The Indians built stone cities, many of which were abandoned long before the arrival of Europeans.

Such a city was Teotihuacan, which contains some of the largest structures of pre-Columbian America - the Pyramid of the Sun and the Pyramid of the Moon. The achievements of pre-Hispanic cultures included a complex religious and mythological system, hieroglyphic writing, majestic architecture, exquisite sculpture and refined decorative and applied arts, extensive knowledge of mathematics and astronomy, and an accurate calendar.

Around the 12th century, the Aztec tribe founded their capital, Tenochtitlan, on the islands of Lake Texcoco. Through alliances and conquests, they significantly expanded their possessions, although in fact the so-called Aztec Empire was an association of city-states with villages and tribes that freely joined them and were subject to tribute. The territory of the ancient Aztec capital was quite extensive: it occupied an area of about 20 km². Tenochtitlan was crossed by a network of canals, and communication with the land was carried out using dams equipped with drawbridges. The first Europeans, amazed by the magnificence of Tenochtitlan, called it the Venice of the Aztecs.

The city was surrounded by a lake, or rather, a whole system of man-made reservoirs, created by the superhuman efforts of the Indians. Three dams connected the center with the land. Canals crossed by bridges served as streets. A stone dam was erected to protect against floods. In the 15th-16th centuries, Tenochtitlan turned into one of the most beautiful cities in the Western Hemisphere.

Rumors about the riches of Mexico attracted the attention of the Spanish conquistadors. The targeted exploration and conquest of Mexico began in 1517 under the leadership of the governor of Cuba, Diego Velazquez, who organized three expeditions to Mexico. The third (last) was led by Hernan Cortes. In 1519, he founded the settlement of Veracruz (literally, the city of the True Cross) on the coast of the Gulf of Mexico, which became a springboard for the conquest of the country. Refusing to submit to the governor of Cuba, Cortes declared himself captain general and, in order to stop desertion, burned his ships. Cortes reached Tenochtitlan (modern Mexico City) and conquered the empire.

The fall of the Aztec Empire marked a new era in the history of Mexico - a period of 300 years of Spanish rule. The Viceroyalty of New Spain, created in 1535 and lasted until 1821, included the modern territories of Mexico, the southwestern states of the United States (as well as Florida), Guatemala, Belize, Nicaragua, El Salvador, Costa Rica, and Cuba. In addition, the Philippines and various islands in the Pacific Ocean and the Caribbean Sea were under its control. The capital was located in Mexico City, and the appointed viceroy reported directly to the monarch of Spain.

The anti-colonial war in Mexico began after the occupation of Spain by Napoleon's troops and the war for independence in the United States. The uprising, which began in the village of Dolores on September 16, 1810, was led by the priest Miguel Hidalgo. Obeying his call, the rebels, mostly Indians and mestizos, moved on the capital. But ten months later, Padre Hidalgo was captured by the Spaniards, defrocked and shot. September 16 is celebrated in Mexico as Independence Day, and Hidalgo is considered a national hero. In 1821, Mexico declared its independence, and in 1824, the first Mexican constitution was published.

At the beginning of the 20th century, Mexico went through revolutionary changes. In the mid-20s of the last century, the country began a period of moderate reforms.

Claudia Sheinbaum Pardo was elected President of Mexico in the general elections held on June 2, 2024. She is the first female president in the history of the country.

To the north, Mexico borders the United States (namely, the states of California, Arizona, New Mexico, and Texas). To the east of the city of Ciudad Juarez to the Gulf of Mexico, the border runs along the winding Rio Grande River. Several natural and man-made markers define the border with the United States west of Ciudad Juarez to the Pacific Ocean.

Mexico is bordered to the west and south by the Pacific Ocean, and to the east by the Gulf of Mexico and the Caribbean Sea. To the southeast, Mexico borders Guatemala (871 km) and Belize (251 km).

Mexico is crossed from north to south by two mountain ranges, the Sierra Madre Oriental and the Sierra Madre Occidental, which are extensions of the Rocky Mountains of North America. From east to west in the center of the country runs the Trans-Mexican Volcanic Belt, also known as the Transverse Volcanic Sierra and the Sierra Nevada. It contains the highest mountains in Mexico: Pico Orizaba (5,700 m), Popocatepetl (5,462 m), Iztaccihuatl (5,286 m) and Nevado de Toluca (4,680 m).

The territory of Mexico is located on three large lithospheric plates and is one of the most seismically active areas on the planet. Plate movements cause earthquakes and volcanic eruptions.

There are about 150 rivers in Mexico, 2/3 of which flow into the Pacific Ocean, and the rest into the Gulf of Mexico and the Caribbean Sea. Despite the obvious abundance of water resources, their distribution across the country is very uneven.

On the Yucatan Peninsula there are a large number of so-called cenotes - natural wells formed when the limestone crust is washed away by rainwater, which then merges with underground rivers.

Mexican culture was formed from a mixture of Spanish and Indian traditions. In the pre-Columbian period, highly developed civilizations flourished on the territory of Mexico, creating magnificent examples of art and architecture - Teotihuacan, Monte Alban, Chichen Itza. The art of the colonial period was largely religious and influenced by Spanish culture. One of the tasks of the conquistadors was to replace ancient Indian structures with Christian churches that reflected the European traditions of Gothic, Baroque, and Neoclassicism.

The revolution of 1910-1917 became a turning point in the social and cultural development of Mexico, the country took a course on returning to its national roots. The powerful impulse of the awakened Indian culture found a response in all spheres of national life, including art - especially in music, painting, decorative and applied arts, literature and architecture. Leading Mexican cultural figures such as Diego Rivera, David Alfaro Siqueiros and José Clemente Orozco were called upon to decorate important public buildings and structures with significant artistic and sculptural works on social and historical themes.

Frida Kahlo, Rivera's wife, painted self-portraits and surrealist paintings that became extremely popular in the early 1980s.

There are 34 UNESCO World Heritage Sites in Mexico. The list includes 27 cultural sites (13 pre-Columbian and 15 post-colonial), 6 natural sites, and 1 mixed site. Of these, 10 are recognized as masterpieces of human genius and 5 are natural phenomena of exceptional beauty and aesthetic importance.

The main distinguishing feature of the people of Mexico is their extreme friendliness. Locals always strive to please, but in return they want the same caring and attentive attitude, so any dismissive attitude can mortally offend a Mexican.

Nature has not deprived this nation of talent, almost every Mexican has some skill.

If you plan to visit a Mexican family, you should take care to prepare modest but pleasant gifts, thereby showing your respect and attention to the hosts.

According to the Constitution, Mexico is a "representative, democratic and federal republic." The executive power is vested in the president, who is elected by direct popular vote for a six-year term. The head of the executive power must be at least 35 years old, have resided in the country for the year preceding the election, and be a Mexican by birth. New elections are called in the event of the death of the president or his inability to perform his duties during the first two years of the term.

The legislative power at the federal level is represented by the bicameral General Congress. The upper house (Senate) consists of 128 senators, the lower house (Chamber of Deputies) has 500 members. The legislative power at the Senate level changes every six years, at the Chamber of Deputies level - every three years.

At the head of the federal judicial system is the Supreme Court, whose members are appointed by the president with the consent of the Senate.

Mexico is one of the 15 largest economies in the world and the second largest in Latin America. The country is heavily dependent on the United States, its main trading partner and the destination for nearly 80% of its exports.

Mexico's economy is diversified and includes high-tech industries, oil production, mining, and manufacturing. According to the latest World Bank data, agriculture accounts for 3.8% of Mexico's GDP and employs 12% of the country's active population. The country is the world's seventh largest agricultural power and is among the world's largest producers of coffee, sugar, corn, oranges, avocados, and limes. Cattle ranching and fishing are also important activities in the food industry. Additionally, Mexico is the world's fourth-largest beer producer and largest exporter.

According to the World Bank, the manufacturing sector employs one-fifth of Mexico's workforce and accounts for 31.6% of GDP. The country is among the world's leading producers of many minerals, including silver, fluorite, zinc, and mercury. In addition, oil and gas reserves are among Mexico's most valuable assets. The aerospace sector has grown rapidly, thanks to the development of the Queretaro cluster and the presence of nearly 190 companies, including Bombardier, Goodrich, the Safran group, and Honeywell, which employ a total of 30,000 people. Mexico is also one of the world's top ten automobile manufacturers, and thanks to significant investment in real estate, the construction sector is fast-growing and dynamic.

The service sector accounts for 58.6% of GDP and employs 63% of the workforce. The high-tech, information and software sectors are booming, driven by the quality of the workforce, clusters and low operating costs that facilitate the establishment of call centres. Health services and tourism have been growing steadily over the past few years, mainly due to lower service costs than in Western countries. Tourism is also a vital sector for the Mexican economy.

Mexico's top export destinations in March 2025 were the United States ($46.2 billion), Canada ($1.81 billion), and China ($890 million).

For its part, Mexico's top import destinations were the United States ($21.2 billion), China ($9.71 billion), and Germany ($1.9 billion).

Mexico's top exports in March 2025 were vehicles ($14.1 billion), nuclear reactors, boilers, machinery, etc. ($11.8 billion), and electrical and electronic equipment ($8.84 billion).

The top The top imports to Mexico were electrical and electronic equipment ($11 billion), nuclear reactors, boilers, machinery, etc. ($9.87 billion), and vehicles ($5.57 billion).

Historically, Mexico has played an important diplomatic role in multilateral forums and organizations, where it has acted as a promoter and leader in economic and trade issues, as well as in other areas.

Mexico is part of the main forum for coordinating macroeconomic policies among the world's 20 largest economies, known as the G20. This presence recognizes the weight of the Mexican economy in the global economic system and allows the country to participate in the process of making important decisions regarding macroeconomic and monetary policies at the international level.

Since 1994, Mexico has been an active member of the Organization for Economic Cooperation and Development (OECD), a forum in which 38 member countries discuss and work together in a coordinated manner to promote policies aimed at improving the economic well-being of countries and people. In this forum, the country's productivity, global trade and investment flows are constantly monitored according to the highest international standards. This has allowed Mexico to work directly on issues that affect competitiveness, based on best practices and international recommendations.

Mexico is one of the 166 countries that make up the World Trade Organization (WTO).

The country is one of the 21 members of the Asia-Pacific Economic Cooperation Forum (APEC), whose economies represent 54% of world GDP and 44% of world trade. Mexico's presence in this forum contributes to the country's goals in terms of trade liberalization, promotion of foreign direct investment, ease of doing business, as well as technical cooperation and best practices.

Mexico has concluded more than 60 agreements on the avoidance of double taxation, which strengthen bilateral relations and allow tax paid in any of the signatory countries to be offset against tax payable in another country in order to avoid double taxation.

Mexico and Russia

Mexico is one of Russia's key Latin American partners in both regional and international affairs.

In 1998, the Russian-Mexican Joint Commission on Economic, Trade, Scientific and Technical Cooperation and Maritime Shipping began operating.

Since 2014, a representative office of PJSC Lukoil has been operating in Mexico. Since 2017, the company has been involved in the implementation of offshore projects in Mexico together with the Italian company Eni.

Since 2009, Gazprom Marketing and Trading Mexico, a subsidiary of PJSC Gazprom, has been operating in Mexico.

In 2015, a plant of the Mexican company Nemak for the production of automotive components was opened in the Ulyanovsk Region. In 2017, a plant of the Mexican company GRUMA for the production of tortillas and chips from corn flour was launched in the Shmatovo Industrial Park in the Stupino District of the Moscow Region.

Such Mexican brands as Mabe (household appliances) and Omnilife (food products) promote their products on the Russian market. In Moscow, the Kidzania children's amusement park operates under a Mexican franchise.

The Russia-Mexico Entrepreneurs Committee under the Chamber of Commerce and Industry of the Russian Federation provides assistance to business contacts.

Under a contract between the Russian Direct Investment Fund and the Mexican Ministry of Health, 20 million doses of the Russian Sputnik V vaccine were delivered to the country during the pandemic.

There is great interest in cooperation with Russia on the part of the Mexican business community. Russian companies, in turn, are interested in such cooperation in the medical field, in the field of natural resource extraction, in terms of the use of renewable energy sources, as well as in tourism and other areas. It is also worth paying attention to the cooperation of individual states of Mexico with regions of Russia.

Since 2022, the volume of exports of agricultural products has increased significantly, and by 2030, the potential of Russian supplies to Mexico is estimated at more than $350 million. Projects in the energy sector, where active work is underway to develop the extraction and supply of energy resources, also remain promising. In addition, Mexico is one of the world's largest producers of certified organic coffee, and the Russian market continues to demonstrate a steady demand for these products.

In 2025, Russia and Mexico will celebrate the 135th anniversary of the establishment of diplomatic relations. During this time, the countries have gone through various stages of interaction, but have always maintained mutual respect and a desire to develop trade and economic ties. Currently, Mexico ranks second among Russia's trading partners in Latin America, and the volume of bilateral trade continues to grow steadily.

The Mexican government has made significant efforts to make the country a competitive place for investment, business development, and productivity. Despite the fact that the international environment has been characterized by a significant economic slowdown, the Mexican economy is striving to maintain stable growth and a positive outlook for the coming years. The country benefits from the confidence of domestic and foreign investors that it is a safe and attractive place to invest.

The 2016 law created a new category of simplified companies called Sociedad for Acciones Simplificadas (SAS) and allows new companies to be registered online within 24 hours.

Companies operating in Mexico must register with the Tax Administration Authority (Servicio de Administracion Tributaria or SAT), the Secretariat of Economy, and the Public Registry. In addition, companies engaged in international trade must register with the Registry of Importers, while foreign companies must register with the National Registry of Foreign Investments.

Mexico is one of the developing countries most open to foreign direct investment.

Automotive manufacturers including Robert Bosch (Germany), Toyota Motor (Japan) and Volkswagen (Germany) have chosen to invest in Mexico due to its proximity to the United States and market access under the United States-Mexico-Canada Agreement (USMCA). Moreover, Mexico has recently introduced nearshoring incentives in the semiconductor, electric vehicle and medical devices sectors.

According to the National Commission on Foreign Investment, investments mainly come from the United States (40.9%), Spain (9.5%), Canada (8.9%), Germany (5.9%) and Japan (5.7%). The manufacturing sector accounts for 49.7% of FDI stock, followed by financial services (13.3%), mining (7.9%) and trade (5.8% - data as of the end of 2024).

As a member of many global economic organizations, Mexico is very well integrated into the global economic order, making it an attractive country for foreign direct investment. In addition, Mexico has a strategic location, a large domestic market, a wide range of natural resources, a highly skilled labor force and a diversified economy.

Foreign investment is mainly concentrated in the cities bordering the US border (where many assembly plants are located) as well as in the capital.

Thanks to its strong tourism industry, the Yucatan Peninsula also receives significant foreign investment. FDI flows to the country fluctuate greatly depending on the arrival and departure of large international groups. The current Mexican FDI framework, primarily governed by La Ley de Inversion Extranjera and its regulations, requires prior approval of direct and indirect investments by foreign investors acquiring a controlling stake in Mexican companies engaged in “strategic activities” or holding assets valued at approximately US$1.1 billion.

Some sectors for investment are reserved for the Mexican state or Mexican citizens.

The Mexican government has created an open and safe environment for foreign investors. The Invest in Mexico Business Center was created in 2022 to facilitate investment. Land grants or rebates, tax credits, and funding for technology, innovation, and workforce development are commonly used incentives.

Other incentives to encourage foreign investment include:

• Special Economic Zones (SEZs) were created to attract investment to economically underdeveloped areas of the country's southern states. Companies that establish themselves in these SEZs will receive various incentives, trade benefits, duty-free customs privileges, infrastructure development prerogatives, and simplified regulatory processes.
• Free Trade Zones (FTZs), where goods destined for foreign markets can leave Mexico duty-free.
• Refunds of import duties paid on final imports. This incentive provides a benefit to importers who can receive a refund of import duties paid on final imports of raw materials or finished goods exported within 12 months of import.
• The IMMEX program, officially known as the IMMEX maquiladora program, allows foreign manufacturers to import raw materials and components into Mexico free of taxes and duties, provided that 100% of all finished goods are exported from Mexico within the government-established deadlines.
• New Exporter Certified Company (NEEC) Program: NEEC certification allows companies to import and export goods from Mexico quickly and with less paperwork.
• Real Estate Investment Trusts (REITs)

Mexico's most promising sectors for foreign investors include advanced manufacturing; agriculture; agribusiness; auto parts and services; aerospace; consumer goods; educational services; energy; environmental technologies; franchising; healthcare; housing and construction; information technology, equipment and services; the Internet and the digital economy; packaging equipment; plastics and resins; security equipment and services; transport infrastructure equipment and services; and travel and tourism services.

The main structures for supporting business and investment in Mexico:

• Mexico's Ministry of Economy (Secretaría de Economía). Coordinates economic policy, including investment and industrial development. Promotes programs such as IMMEX, which allow companies to temporarily import raw materials tax-free for subsequent export of finished products.
• Chambers of Commerce and Industry (CANACINTRA, COPARMEX, etc.). Offer legal, logistical and consulting assistance to entrepreneurs.
• AMEXCAP (Asociación Mexicana de Capital Privado). An association uniting venture capital and investment funds. Helps startups and growing companies find financing.
• Bank Nacional Financiera (Nafin). Provides financing to small and medium-sized enterprises (SMEs), including strategic investments and participation in joint ventures.
• Bancomext. Specializes in supporting exporters, offering loans, training and consulting for SMEs.
• "Invest in Mexico" Business Center. Created to attract and accompany foreign investment. Provides information on regional opportunities, connects companies with local suppliers and advises on national procedures.
• Regions with special customs regimes (RFEs). Allows temporary storage and processing of goods without paying taxes, which promotes export development.
• Private initiatives and accelerators: Programa Acelera. Helps Mexican SMEs enter the US market by providing training in accounting, marketing and customs procedures.
• Play Business. A crowdfunding platform that offers investors a stake in startups, stimulating the development of entrepreneurship in the country.
• COPARMEX. Unites more than 36,000 companies, providing legal and consulting support, as well as promoting business interests at the national level.
• "Plan México". The government's strategy to attract $100 billion in foreign direct investment annually, create 1.5 million jobs and develop key industries such as automotive, pharmaceuticals and semiconductors.
• Amazon Web Services (AWS). The company has announced plans to invest more than $5 billion in cloud computing in Queretaro, reflecting growing interest from major international companies in the Mexican market.