If you're considering expanding or relocating your manufacturing operations to Mexico, you're probably already aware of the affordable labor costs. Now you'll need to familiarize yourself with the Mexican Federal Labor Law (FLL). While there are some commonalities, such as the establishment of overtime pay, Mexico's labor laws generally offer different types of protection for workers than the laws in the United States. Here's our short guide to some of [...]

This content was last updated on July 17, 2019. Maquiladora Definition A Maquiladora is a factory or manufacturing operation in Mexico run by a foreign company and exporting its products to the country of that company. These factories import certain raw materials on a duty-free and tariff-free basis for manufacturing and then export the manufactured goods back to the country of the company that produces the manufactured goods (often the [...]

This content was updated on June 29, 2020 for accuracy and relevancy. Mexico international trade is a complex and rapidly evolving issue. On June 5, 2018, the Mexican government responded to the United States tariffs on certain Mexican steel and aluminum by suspending the preferential tariff and raising the general import tax rate for a variety of goods originating from the U.S. Furthermore, according to Export.gov, “Mexico is applying tariffs to [...]

For decades, China was known as the top location for cheap labor and cheap manufactured products, but things have changed in recent years, and many Chinese products no longer are cheap. But competition from Mexico manufacturing is proving good, affordable products are available much closer to the United States. Products coming in from China have grown in cost for many reasons. The energy costs are at unprecedented highs. In the [...]

We are pleased to announce that our current foothold in Mexico is gaining traction as more companies choose to manufacture their products in Mexico. Mexican manufacturing is especially prevalent in cities like Mexicali, Tijuana, Juarez and Guanajuato. Union Pacific is now enjoying consistent demand for services out of these cities, and we anticipate that demand will increase as more companies discover the benefits of Mexico manufacturing. Many companies have only [...]

March 19th, 2014 - This year marks the 20th anniversary of the North American Free Trade Agreement (NAFTA) between the United States, Mexico and Canada. The trilateral pact was signed by United States President Bill Clinton, Mexican President Carlos Salinas, and Canadian Prime Minister Jean Chretien, and implemented in January 1994. The agreement eliminated most tariffs on products traded between the United States, Mexico and Canada. It also applied intellectual [...]

March 5th, 2014 -- Manufacturers of Consumer Electronics are Moving to Mexico to Reduce Costs. In a move to reduce costs manufacturers are choosing to manufacture in Mexico over long time competitor China, as the ideal location to produce their consumer electronics. Consumer electronics has shown strong growth in Mexico and will continue to expand, as more and more companies begin to tap the rich mine of labor in Mexico that [...]

February 25th, 2014 - On Wednesday, February 19, the leaders of the United States, Mexico, and Canada will meet to discuss international policy in North America. The summit is scheduled for the 20-year anniversary of the North American Free Trade Agreement, highlighting issues of trade relations between the three countries. Mexican president Pena Nieto is expected to emphasize the reforms and gains his nation has made in the economic arena, [...]

February 20th, 2014 - Tijuana, Mexico was showcased as Mexico’s medical device hub at MD&M West, the largest medical device event in the United States. Held in Anaheim, California February 10th – 13th, MD&M West featured suppliers of medical devices as well as products and educational opportunities related to the medical-device field. An increasing number of manufacturers of medical devices find Tijuana’s business environment attractive. Whereas full-time American workers typically [...]