Socioeconomic profile

Country economic profile

In 2020, the economy in Mexico registered a real GDP decline of −8.5% over 2019, which is expected to pick back up at a growth of +4.7% in 2021. Mexico had a net export surplus in goods and services of (US$23.7 billion) with exports totalling US$431.2 billion and imports of US$407.5 billion in 2020. During this period, gross value added (GVA) into the Mexican market totalled US$1.0 trillion with agriculture, hunting, forestry and fishing contributing a GVA of US$42.5 billion (4.3%), manufacturing representing (20.9%) of GDP, and services (63%) of GDP.

Demographics

The total population of Mexico in 2020 was 126.1 million and is expected to reach 132.6 million in 2025 . In 2020, the male population represented 48.7%, female population at 51.3%, and the median age was 29.0 years. The majority of Mexicans lived in urban areas (80.6%) compared to the rural population (19.4%).

In Mexico, the number of households totalled 35.9 million with an average household size of 3.5 persons in 2020. Middle class households accounted for 26.3f% (which may significantly be reduced given the pandemic, as a result of a lower economic growth with less quality and formal job availability); whereby 92.4% of inhabitants lived in houses, 6.6% in apartments, and 1.0% in other dwellings. In 2020, households consisting of a couple with children (highest number with a single child) represented 39.3%, followed by single person (13.3%), couples without children (11.3%), single-parent families (9.7%), and other blended household types (26.5%).

Consumer income and expenditures

In 2020, the median disposable income per household in Mexico decreased by −9.6% from US$16,920.2 (2019) and is expected to return back up to US$16,188.2 in 2021. Consumer expenditure was US$692.7 billion in 2020, representing a decrease of −7.8% over 2019, yet is expected to surpass pre-COVID values at US$756.7 billion (+9.2%) in 2021. In 2020, consumers spent 27.8% (US$193.0 billion) on food and non-alcoholic beverages and US$26.3 billion on alcoholic beverages and tobacco products.

The digital consumer in Mexico

Key trends^{Footnote 1}

A large amount of Mexican consumers were encouraged to shift their purchasing habits to the online e-commerce realm once the 2020 lockdowns were enforced, with the retailing and foodservice industries benefitting the most. The Mexican government had to quickly partner with app developers, to develop an app-based and browser-based payment system (that is; UnDosTres), to enable bill payment of state utility services such as water, electricity and gas. This UnDosTres app, also increased online payments for streaming services and online video game purchases.

Amongst the Mexican population, cash remains the main payment method only decreasing from historical levels of above 90% to 80% usage in 2020. The usage of cash alternatives in Mexico have a ways to go and it will take time to engage Mexican consumers with adopting methods to pay using digital or card payment methods. In order to have digital payments enter the mainstream, key stakeholders must address important ongoing concerns over the security of online payments and the fees that are levied on bank accounts and financial cards. Leading retailing banks in Mexico positively working with consumers on secure online payments are BBVA and CitiBanamex.

Positively impacted from the COVID-19 pandemic was the proliferation on new or existing online merchants to the digital platform, who attracted new e-commerce consumers (including previously hesitant older consumers) through the introduction and/or re-development of their websites, with additional expansion of its product ranges and e-commerce payment options.

As a result of the surge in demand for e-commerce expenditure in Mexico during 2020 (unprecedented in the past), it is expected that e-commerce sales will remain higher than pre-COVID-19 levels, especially now that new online consumer shoppers have discovered the convenience and value for money that the channel can offer

According to a 2020 Kearney Retail Jumpstart report developed for the Mexican Online Sales Association (AMVO), the top five reasons for consumers to select one e-commerce channel over another include delivery time and cost (free delivery), product variety, availability and quality (74% want to communicate with person responsible for choosing their groceries), easy, expedited and open communication in terms of customer service warranties and return policy, ease of access and navigation to heavily graphic interface, and personalization and loyalty programs (60% of Mexicans consider it important to receive complementary personalized services for e-purchases)^{Footnote 2}

Within the food and beverage sector in Mexico, there are more male (54%) online shoppers than female (46%), which is the opposite of physical channel buyers. Young adults constitute the largest e-shopper demographic: 18 to 24 age group (25%) and 25 to 34 age group (29%).^{Footnote 3}

For many years, e-commerce lagged behind in Mexico when compared to developed countries and similar economies. As a result, digital inclusion has become a top priority in Mexico's government economic administration agendas. Thus, the 2014 Financial Reform developed in partnership with the Mexican government and the National Bank association, supported by several multilateral organizations helped introduce financial inclusion programs directed towards diversifying access to additional financial methods and fintech payment solutions. Along with the Telecommunication Reform introduced in 2013, internet access among the Mexican population has registered double-digit growth rates and e-commerce sales registered a CAGR as high as 44.5% (2016 to 2020), with categories particularly registering high growth change between 2019 and 2020.^{Footnote 4}

E-commerce market sizes: retail sales

In 2020, store-based retailing accounted for 88.0% (US$168.8 billion) of retail sales and non-store based retailing accounted for the remaining sales of US$23.0 billion (12.0%). Furthermore e-commerce sales were the highest non-store venue over direct selling, vending and homeshopping channels in Mexico, totalling US$16.2 billion (70.5%) of non-store retailing sales.

In terms of cross-border e-commerce expenditure in Mexico, domestic e-commerce sales totaled US$12.9 billion with a share value of 79.8% and foreign sales were US$3.3 billion (20.2%) in 2020. Purchases via mobile telephone devices accounted for 59.9% of all domestic e-commerce sales that registered the highest 5-year historic growth at US$6.7 billion in 2020 (CAGR: 66.3%). E-commerce sales overall historically increased at high CAGRs between 43%-66.3% from 2016 to 2020, and are expected to continue growing at CAGRs between 46.3%-61.0% (2021 to 2025).

According to Euromonitor, it is said that grocery shopping has been the category in Mexico with the most resistance to e-commerce in general than in some other markets. Going to a grocery retailer is a large part of the Mexican food culture and many consumers have only trusted picking out their own produce and other food items themselves over having another person do it for them. However, the pandemic helped push many Mexicans out of their comfort zones and have begun to try using online grocery shopping as a means to avoid the risk of physically going to the store. Although, many consumers will go back to in-person grocery shopping following the pandemic, it is expected that online grocery shopping will continue to grow.^{Footnote 5}

Within a 2020 Kearney Retail Jumpstart report developed for the AMVO, 61% of grocery e-consumers indicated that they make purchases more than once per month and those with a frequency of two and three times per month increased their purchases by 16% as a result of the pandemic. According to the AMVO report, the top reasons for Mexicans to purchase their groceries online, excluding social distancing reasoning, were the following:^{Footnote 4}

1. Receive groceries at my address (58%)
2. Save time by not having to go to a physical store (58%)
3. Ability to shop anytime (50%)
4. Finding more discounts and promotions online than in physical stores (48%)
5. Ability to pay through different means (47%)

Overall, e-commerce retail sales by product increased by a CAGR of 44.5% between the period of 2016 to 2020 and is expected to continue to increase by 47.1% (2021 to 2025). Nevertheless, although many sectors in the e-commerce channel saw growth by as much as 50% of transactions in 2020 over 2019, key sectors contributing to the online sales value such as travel, tourism, mass events and mobility applications experienced strong contractions in overall market value growth expectations, as a result of the COVID19 crisis.^{Footnote 4}

In 2020, e-commerce expenditure on food and drink products was the 4th largest product category in terms of sales at US$680.7 million that accounted for 4.2% of total e-commerce sales in Mexico. Surveys indicate that Mexican consumers are spending approximately 67.4% on grocery items and 32.6% on non-grocery items, whereby this ratio split hasn't changed much over the last 5-year period (2016 to 2020).

Other main product categories with the highest e-commerce sales in Mexico included consumer electronics (US$2.4 billion), apparel and footwear (US$2.2 billion), and media products (US$1.3 billion) in 2020. Consumer health (US$100.6 million) and pet care (US$82.4 million) products were the 8th and 9th largest product categories with the highest e-commerce sales in 2020, respectively.

In 2020, Mexican retail sales of e-commerce packaged food totalled US$462.9 million, which has increased at a CAGR of 37.6% (+92.2% from 2019 to 2020) compared to store-based sales with a CAGR of 4.0% between 2016 and 2020. Top packaged food categories with the highest e-commerce sales were sauces, dressings and condiments (US$92.4 million), dairy (US$83.2 million), processed meat and seafood products (US$56.2 million), rice, pasta and noodles (US$47.8 million), and baked goods (US$46.7 million) in 2020. The food categories with the highest growth in e-commerce sales between 2016 and 2020 included savoury snacks (50.7%), rice, pasta and noodles (44.4%), dairy (44.3%), sweet biscuits, snack bars and fruit snacks (43.7%) and breakfast cereals (41.0%).

Store-based sales of packaged food accounted for 98.3%, while non-store sales (1.7%) within the e-commerce category represented 0.9% in 2020. The food categories with the highest online value distribution share compared to store-based sales were soup (5.1%), processed fruit and vegetables (3.3%), sauces, dressings and condiments (2.8%), rice, pasta and noodles (2.3%), and breakfast cereals (2.1%) in 2020. The food categories with the highest growth in e-commerce non-store retailing sales share between 2016 and 2020 included dairy (36.8%), breakfast cereals (36.8%), rice, pasta and noodles (34.6%), baked goods (31.6%), and sweet biscuits, snack bars and fruit snacks (31.6%).

Within the foodservice industry in Mexico, e-commerce sales increased by 203.2% from US$955.6 million in 2019 to US$2.9 billion in 2020. However, foodservice sales are expected to slow down again to increase by a 5-year CAGR of 8.9%, returning to US$1.9 billion in 2021 and reaching US$2.7 billion in 2025.

In 2020, online foodservice sales via mobile telephone devices in Mexico were US$1.8 billion, followed by purchases via personal computers (US$842.8 million), tablets (US$296.1 million), and other remote voice platform devices (US$1.9 million). The usage of mobile devices for foodservice purchases accounted for 77.6% of e-commerce sales, most likely due to easy and quick accessibility to foodservice apps within the industry. Meanwhile, personal computer usage to order foodservice meals represented 29.1% sales, tablets (10.2%), and other remote by voice platform devices (0.07%).

Mintel surveys indicated that Pre-COVID dining was already a mix of delivery, eating out and home cooking in Latin American (LATAM) regions. Mexican consumers reported that they spent 27% more for takeout/takeaway or home delivery in the year to December 2019. In Mexico City, Culinaria Mexicana helped restaurant owners stay afloat during the COVID crisis through the creation of a pay-it forward campaign to help owners come up with a business plan supported by the sale of vouchers, online delivery and takeout.^{Footnote 6}

Digital platforms functioning as intermediaries and offering home delivery of groceries and prepared foods have become popular since 2015 when Cornershop and Rappi entered the market, followed by Uber Eats in 2016. While the main focus of Rappi and Uber Eats is on offering prepared foods delivery, they also offer grocery shopping and delivery services, a segment that Cornershop has dominated in Mexico. According to COFECE (Federal Economic Competition Commission), Cornershop posted 73% of food and beverage sales among marketplaces and online platforms from January to June 2019, including Mercado Libre (13%), Amazon (12%), and Rappi (1%). With the collapse of last-mile distribution chains during the peak of the pandemic (April and May 2020), those platforms, as well as other mobility platforms such as Beat, Cabify, Pronto and Uber, became important logistical partners. The mobility platforms complemented the distribution chains of large retailers and for small companies lacking in-house delivery services, they enabled products to reach urban customers without significant delays.^{Footnote 4}

Other foodservice trends in LATAM include packaging innovations to promote safety, freshness, convenience and extended shelf life that are being adopted by many restaurants such as vacuum sealing. In Mexico, Zeru offers vacuum-packed dishes to guarantee hygiene, and offer heating instructions. Several business owners are creating partnerships or "collabs" for mutual support, to extend offerings and share costs ie; coffee shops who are teaming up. In Mexico, UberEats, Rappi, SinDelantal and Didifood are teaming up to deliver online restaurant orders. Additionally, Barista and sommelier are offering tools and expertise via subscription packages for online courses or to experience virtual tasting offerings of a variety of alcoholic or coffee brands like Mexico's, HomeCata that offers wine, tequila and mescal virtual bookings that will be delivered to their homes for virtual tastings.^{Footnote 6}

Competitive e-commerce landscape

In 2020, top e-commerce retailers with the highest online market shares in sales value in Mexico were two leading pure e-commerce players MercadoLibre SRL (13.6%) and Amazon.com Inc. (11.6%), Walmart Inc. (6.6%), Grupo Coppel SA de CV (4.5%) for sales of its household products, and El Puerto de Liverpool SAB de CV (4.5%) - Mexico's largest department store chain focused on high-to-mid income segments including sales of gourmet foods and beverages. Vente-privee.com SAS accounted for 0.9% and other online retailers, represented 50.9% of sales in 2020.

Walmart de Mexico (Central American Operations) has invested in e-commerce for a number of years with Mexican consumers remaining cautious of using its platforms for grocery items. Coppel SA de CV has gained as a leading player in e-commerce sales, while 3rd party merchants accounted for 22% of value share in 2020. During the year, many grocery retailers have invested large amounts of money into e-commerce, entering into partnerships with communications and delivery apps to improve and broaden their online platforms, as well as, building distribution centres around Mexico.^{Footnote 5}

Amazon MX first entered into Mexico in 2015, setting an important milestone for e-commerce development not only for being the leading global e-platform but for boosting the sector through its establishment of new delivery and service benchmarks, along with increasing logistic chain integration into Mexico, allowing consumers to become more willing to purchase from now faster growing, existing and new platforms.^{Footnote 4}

As the expansion for e-commerce continues, Mexican consumers will begin to demand higher levels of quality, variety and reliable delivery in products. 3rd party merchants like MercadoLibre, Amazon and Coppel SA de CV hold the highest spots in Mexico but is likely to expand or lower in its market share as the channel grows and attracts new domestic and foreign competition ie; Chinese company Alibaba (plan to pair with GINgroup to promote and develop digital villages in all 32 Mexican states to offer training in e-commerce expansion and launch micro-businesses), MercadoLibre (open more tech hubs), Amazon (expand network of distribution hubs), and eBay (initiatives to bring small to medium sized businesses into e-commerce market).^{Footnote 5}

Digital landscape in Mexico

Key trends^{Footnote 7}

Although the COVID-19 pandemic has boosted the demand for digital payments, challenges remain in Mexico with a substantial amount of the population who do not trust banking with major financial institutions (high proportion not in possession of a credit or debit card) as Mexicans remain skeptical over the security of online payments. Notably, there is a 40% of active labor force performing in the informal economy, thus, there is a constraint to increase demand for digital payments in the short term.^{Footnote 4}

Leading e-commerce players have developed apps with enhanced security tools and a more secure payment system to provide added reassurance to online Mexican consumers ie; ScamAdviser launched by the Mexican internet association (AIMX) and law firm Baker McKenzie to check legitimacy of shopping websites

One digital payment solution offered by leading institution (Mercado Pago) was the increased offering to Mexicans of reloadable pre-paid cards and similar payment options, which has successfully helped towards the expanded uptake of digital payment transactions by 448% in 2020. Other dominant players with leading digital payment platforms include MasterCard (partnering with CLIP remote payment option) and Walmart (partnering with online messaging platform WhatApp, CoDi wallet, BBVA Wallet and PayPal).

In 2020, mobile connectivity remains very high with 100.5 million mobile internet subscribers and the number of internet users is set to increase at a CAGR of 3.8% (2021 to 2025), reaching 103.0 million people in 2025.

In the past, e-commerce lagged behind in Mexico due to factors such as high internet access costs, low financial inclusion, low consumer confidence for online credit card use, and poor inefficient/high-cost logistics making it difficult for smaller to medium businesses to offer alternative e-payment methods. The Telecommunications Reform implemented in 2013, however, helped to substantially lower mobile and fixed internet access costs that in turn dramatically helped change Mexico's e-commerce sector, by quadrupling network infrastructure and enabling the sector to more than double in value over the last 5 years.^{Footnote 4}

In 2020, the number of internet users in Mexico totaled 84.7 million people, representing an increased CAGR of 6.4% (2016 to 2020). Users that accessed the internet on a daily basis accounted for 51.6% up to 71.5% of those also, accessing the internet at least once a week. The percentage of the population that used the internet from home was 73.0%, while those users at the workplace was 55.6% in 2020. Historical 5-year growth was highest for the population that remained working in the workplace at a CAGR of 10.8% and more growth is expected for Mexicans to return back to using the internet at the workplace (CAGR: 5.3%) than from home (CAGR of 2.8%) during the period between 2021 and 2025.

In Mexico, there were approximately 138.4 million internet subscribers and 5.2 million VoIP subscribers with wireless broadband internet subscribers (via mobile or Satellite/Terrestrial) representing 75.8% of users, followed by fixed high-speed broadband subscribers (14.6%), and fixed narrowband subscribers (9.6%) in 2020. It is said that 53.7% of users access the internet via their mobile phone, while 24.3% use a laptop, Notebook, Netbook or Tablet. Surveys claim that 67.5% often use the internet for telephone or video calls, selling goods or services (25.1%), or internet banking (18.6%) in 2020. Leading 2020 social media sites included Facebook (FB), YouTube, Instagram, TikTok, Pinterest, Twitter, and LinkedIn, while leading social messaging Apps were Whatsapp, FB messenger, Skype and LINE.

In 2020, there were 124.3 million mobile telephone subscribers in Mexico, which grew at a CAGR of 2.7% (2016 to 2020). Mobile networks covered by a mobile-cellular network accounted for 96.7% of the population, followed by coverage by at least a 3G mobile network (96%), and mobile coverage by at least an LTE/WiMAX network (92%) in 2020. The average usage time for mobile telephone calls per mobile subscriber was 2,465.8 minutes at an average price per 1-minute call of MXN$0.7 (SMS text: MXN$0.8).

The percentage of Mexican households with access to internet was 58.4% in 2020. The top four largest and lowest four regions in Mexico with access to internet were lower/Southern (Baja/Sur) California, Sonora, Federal District of Mexico City, Nuevo Leon and Puebla, Tlaxcala, Oaxaca, Chiapas, respectively. In 2020, other key demographic/household status factors accounting for the highest population of internet users (% of households) included other blended families (69%) or couples with children (61.2%), and mortgage homeowners (78.3%) or renters (60%). The population groups with the highest possession of digital devices and access to the internet (% of households) were users between the age of 30-39 (65.9%) or 40-49 (63.5%), who were employers and self-employed (62.1%) or employees (60.2%), and the average number of devices per household were 4 (65.3%) or 6+ (62.5%).

In 2020, the breakdown of the percentage of households in Mexico that possess a digital device is as followed: Possession of mobile telephone (83.4%), Smartphone (64.3%), personal computer (46.1%), laptop (27.2%), and Tablet (28.3%). These statistics indicate that digital device users are moving away from the usage of personal computers with a CAGR of 0.3%, while the possession of Tablets have increased at a CAGR of 18.4% between 2016 and 2020. Digital users need quick access to e-information in a compact, user-friendly and portable device.

In Mexico, the top four largest and lowest four regions consisting of households that possess a mobile telephone were lower/Southern (Baja/Sur) California, Sonora, Quintana Roo, Sinaloa and Puebla, Guerrero, Chiapas, Oaxaca, respectively in 2020. Other key demographic/household status factors accounting for the highest population of mobile users (% of households) included other blended families (89.6%) or couples with children (85.6%), and mortgage homeowners (94.5%) or renters (86.1%). The population groups with the highest possession of mobile telephone digital devices (% of households) were users between the age of 30-39 (87.6%) or 40-49 (86.3%), who were employers and self-employed (85.5%) or employees (84.5%), and the average number of devices per household were 4 (87.3%) or 6+ (85.8%). Mexicans possessing a mobile telephone in terms of income levels in 2020 (assuming ie; decile 5= MXN$50k): users in the decile 9-10 range (100%), followed by decile 7-8 (95.7-99.3%) and from decile 5-6 (88.2-92.3%).

In 2020, the top four largest and lowest four regions in Mexico consisting of households that possess a personal computer (pc) were the Federal District of Mexico City, Lower-California, Nuevo Leon, Sonora and Veracruz, Guerrero, Oaxaca, Chiapas, respectively. Other key demographic/household status factors accounting for the highest population of personal computer users (% of households) included single-parent families (27.9%) or single persons (35.5%), and mortgage homeowners (62.3%) or renters (53.8%). The population groups with the highest possession of personal computers (% of households) were users between the age of 30-39 (52.1%) or 40-49 (50.2%), who were employers and self-employed (49.1%) or employees (47.5%), and the average number of devices per household were 4 (51.6%) or 6+ (49.4%). Mexicans possessing a pc in terms of income levels in 2020: users in the decile 9-10 range (82.4-99.4%), followed by decile 7-8 (60.3-70.9%), decile 5-6 (34.0-44.6%), decile 3-4 (19.8-26.2%), and from decile 1-2 (13.6-14.9%).

Opportunities and challenges for Canadian suppliers

Opportunities

Canadian companies looking to take advantage of the e-commerce boom in Mexico, should establish a local presence with local inventory through access to a local distributor, dealer, representative or third-party with import and managed warehousing capabilities; or as a last option with a company's own local independent company resources. Intermediary agreements are common and there are a large number of importing companies present in Mexico available through distributors. While these intermediary margins add to the product cost, it is a suitable option for low-volume, high-value items. For consumer packaged goods (CPGs) or commoditized items, while considering added costs of doing business with strict taxation and e-commerce regulations, weighing best alternative business practices is key to cut these intermediary costs and remain price competitive and ensure a successful business relationship in Mexico. Having a direct presence or alliances with large CPG companies, processors, converters or local white label custom-manufacturers are good options for participating in these categories.^{Footnote 4}

Canadian food and beverage suppliers can look into using retailer e-commerce platforms and distribution centers located in Mexico that sell consumer or exclusively grocery and fresh food and beverage products. A list of leading or smaller seller marketplaces in Mexico include Amazon MX, Canastarosa, Central en Línea, (Super) Chedraui (Selecto/Súper Che and Supercito ), Click Abasto, Jüsto (100% digital supermarket), Liverpool, Mayoreo Total, Mercado Libre, El Palacio de Hierro, Soriana, Walmart - México y Centroamérica, and Zona Verde.^{Footnote 4}

A number of Canadian companies are already selling in Mexico, whereby the Canadian Embassy in Mexico has developed a comprehensive directory with a catalogue and can be accessed at mx - food and beverage importers and distributors (PDF, in Spanish only).^{Footnote 4}

With the increase of e-commerce sales in Mexico, several big International and small companies alike are investing in e-commerce infrastructure and online sales exposure in Mexico. Key onmichannel strategies in which leaders are focusing on include strengthening human resources and investments in logistic networks, processes, developing platforms, demand planning, and personalized customer experience offerings.^{Footnote 4}

A wide range of international fintech start-ups are expanding into Mexico, including some financial services entities which solely operate in the digital realms with no physical presence.^{Footnote 1}

Cornershop and Rappi, last mile delivery companies are substantially expanding by partnering with essential and non-essential businesses. Many Mexican companies are looking to avoid opening new brick-and-mortar physical stores by partnering and investing in e-commerce distribution retailers, who have proven more lucrative with online sales than in physical stores over 2020.^{Footnote 5}

Challenges

Although the largest retailers and supermarket chains are establishing their online presence as a core business line, it is rare to achieve increasing demand, and brand diversity or recognition through offering only an online-exclusive presence. In fact, the same category leaders and buyers often manage purchases for both traditional brick-and-mortar stores and e-commerce with ultimately physical stores being the primary focus and sales being dependent on the product being in stock on local store shelves. For this reason, foreign brand or companies interested in entering the Mexican market should approach Mexican companies in a traditional manner, using a multi-disciplinary approach by persuing a 'traditional brick-and-mortar retail store with an e-commerce presence' strategy.^{Footnote 4}

The main challenges that many retailers faced in 2020 were on offering a variety of payment methods that offered secure and reliable delivery in the midst of greatly increased demand in Mexico.^{Footnote 5}

In 2018, the Mexican government enacted the 'Law Regulating Financial Technology Institutions' (Fintech Law), requiring all fintech companies operating in Mexico to register with the National Banking and Values Commission (CNBV), to ensure their regulatory compliance in terms of transparency, security, information protection, record keeping and consumer protection, and other oversight parameters.^{Footnote 4}

While e-commerce with home delivery is generally a viable option in Mexico, many rural areas lacked the infrastructure to enable quick and consistent deliveries. Click-and-collect services became popular after the onset of the pandemic and this infrastructure put in place to have consumers pick-up physically at the store (not necessarily entering the store) is expected to continue to be supported after the fears around COVID-19 fades.^{Footnote 5}

Most e-commerce selling platforms require a Mexican tax ID and a tax compliance certification for registry, whereby having a direct presence through a branch, subsidiary or business partner is required to process invoices and for monthly tax reporting. In practice, it is easier and more secure to establish a local independent company than having a foreign company to limit tax limitations and potential liabilities of their Mexican operations. However, as noted it is a good option to have intermediary agreements to develop local relationships and maintain direct local presence or alliance with importing Mexican CPG companies, processors, custom manufacturers, distribution companies etc.^{Footnote 4}

Canadian agri-food products to be sold through e-commerce directly from Canada to Mexico, would still be expected to comply with the applicable Mexican regulations in order to be imported into Mexico. Therefore, Canadian exporters would need to work closely with their Mexican importers/customs brokers to ensure their agri-food products are compliant with the Mexican regulations.^{Footnote 4}

For more information

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