Long gone are the days when discussions about customs and foreign trade in Mexico was always in reference to opening borders and policies to promote the development of local industries in a global economy. Today we find that the focus is more on new topics concerning security of the supply chain and compliance with customs regulations, as the key elements that determine the success of a business.
During the last year, one of the most relevant topics has been the new regulations issued by the Ministry of Economy to implement export controls, in accordance with the Mexican government’s international commitments on non-proliferation of conventional arms and weapons of mass destruction and their delivery systems, and also restrictions on the transfer of dual-use goods, software and latest technologies within the framework of the Wassenaar Agreement. This is a significant challenge for business and customs facilitation in Mexico.
The impact of these new rules extends to the production and export operations of a large number of industrial sectors, the most significant being those engaged in electronics, telecommunications, computer hardware and software, chemicals, aerospace, automotive and auto parts sectors, as well as, of course, those focused on the manufacturing and export of weapons and military equipment.
While these regulations require companies to strengthen compliance with export regulations, they also bring an opportunity for new markets within the country, opening the door to new investments and business that before the admission of Mexico into the Wassenaar Agreement were almost impossible to consider by multinationals that are subject to export controls in their home jurisdictions.