Explore U.S. FDI in mexican manufacturing accumulates 56.21 billion dollars, according to data from the Department of Commerce at the close of 2023.
In general, FDI (Foreign Direct Investment) strengthens economic ties between countries.
It facilitates direct access of foreign investors to companies and production units in the destination countries. In addition, in a favorable political environment, FDI boosts the development of local companies. It also promotes international trade by opening new markets.
Products manufactured in Mexico
Of total cumulative U.S. FDI inflows to Mexico, 38.9% went to manufacturing.
Manufacturing production in Mexico is a strategic sector and generates almost 90% of Mexican exports.
Trucks, cars, computers, telephones, appliances, auto parts, medical devices, food, chemicals, metals and machinery, among other goods, are produced in Mexico.
U.S. FDI in mexican manufacturing
These investments contribute to the transfer of technology and know-how. Their impact does not stop there. FDI influences the development of labor and financial markets.
The following are the main manufacturing industries with the most U.S. Foreign Direct Investment in Mexico, in millions of dollars:
- Food: 4,292.
- Chemicals: 4,631.
- Primary and fabricated metals: 3,552.
- Machinery: 626.
- Electronic products and computers: 2,013.
- Electrical equipment, apparatus and components: 2,711.
- Transportation equipment: 20,770.
- Other manufactured goods: 17,615.
Sources of capital
In the late 1980s and early 1990s, Mexico eliminated many restrictions on foreign investment.
According to a U.S. congressional analysis, this change, along with NAFTA rules, was key to attracting more investment to the country.
Conversely, Mexican FDI in the United States also grew significantly. In 1997, when data began to be recorded, it was US$4.1 billion. By 2022, this figure had increased to $54.0 billion (per beneficial owner).
In 2023, the United States remained the main source of FDI flows to Mexico. It accounted for 37.8% of the total, equivalent to US$13.6 billion, according to Mexican government data.
In second place was Spain with 10.5% (3.8 billion dollars). It was followed by Canada with 9.6% (3.5 billion dollars), Japan with 8.1% (2.9 billion dollars) and Germany with 6.7% (2.4 billion dollars).