Nearshoring to Mexico – A Toolkit Approach

About the Course

Mexico has overtaken China as the #1 source of imports to the US, and the trend is set to accelerate over the next 20 years. Geopolitics and the US-China trade war have changed Mexico’s role in the North American economy, and there is now a once-in-a-generation opportunity for managers who know how to take advantage of it. 

Module 1: Introduction to Nearshoring and the Benefits of Mexico 

What is “nearshoring”: Explore the concept of nearshoring and its advantages over traditional offshoring.

The Mexican value proposition: Location, USMCA trade rules, and strong institutional relationships explain Mexico’s success as a nearshoring destination.

Mexico’s business environment.

Module 2: The 3-Step Mexican Manufacturing Model 

Step 1: Import under IMMEX (Maquiladora Industry Modernization Program):

What is the IMMEX program and its benefits (duty-free temporary import of materials for processing and export).

The mechanic of IMMEX programs (manufacturing services, shelter programs).

The players, regulations, and institutions driving IMMEX.

Step 2: Utilizing Mexico's Shelter Program to register your Mexican business.

Define shelter companies and their role in facilitating IMMEX operations.

Explain the advantages of using a shelter (reduced administrative burden, legal expertise).

Highlight key considerations when selecting a shelter provider (experience, reputation).

Shelter vs. Greenfielding.

Step 3: Exporting to the US under USMCA (United States-Mexico-Canada Agreement):

Discuss the USMCA's benefits for nearshoring to Mexico (duty-free access to US market, origin rules).

Explain the process of complying with USMCA requirements for duty-free exports.

Explore potential challenges and solutions related to customs regulations.

Module 3: The future of the North American Trade Bloc

Mexico’s post-nearshoring economy. What does the future hold for Mexico?

The main stakeholders

What about China?

What about entrepreneurs?

The new JV: US-Mexican hybrids. 

Course Objective

Participants will leave this course with the tools and knowledge to take the lead in nearshoring decisions. They will understand the opportunities and risks involved in developing a winning North American strategic plan.  

Who is the Target Audience?

Managers & business students. Appropriate for professional development.

Basic Knowledge

Basic business familiarity