Mexico has a great potential to become a world class logistics hub, and special economic zones (SEZs), provide just the right tools.
Mexico has the potential necessary to become a logistics centre that facilitates trading exchange within the country and around the world, due to the following reasons:
- The country´s strategic location as a neighbour of the largest and most dynamic economy in the world.
- With a 3,000 kilometres border and 11,000 kilometres of coastline along the Pacific Ocean and the Gulf of Mexico, combined with good port infrastructure; Mexico has 16 ports, including four international ones (like the port of Veracruz, which was recently expanded).
- A reasonable level of highway connectivity.
- 12 trade agreements with a total of 46 countries, with access to the main economies of the world in Asia, Pacific, Europe, and North and Central America.
Nonetheless, logistics connoisseurs think that there is still a road ahead. It proves necessary to strengthen the connection between a series of elements that need to work together, such as: competitiveness, operating efficiency, cost reduction, infrastructure, technology, planning, trade flow analysis, etc.
Special Economic Zones
Special Economic Zones of Mexico are in geographically defined in zones that provide natural and logistical advantages that enable their making into highly productive areas.
These SEZs seek to close gaps by creating new industrial development poles that attract investment and provide multiple benefits to companies who decide to join in, such as:
- 100 per cent income tax (Spa. ISR) relief during the first 10 years.
- Zero per cent value added tax (Spa. IVA) on the purchase of items in Mexico.
- Tax incentives of 25 per cent on employee training expenses.
- A tax credit for employer contributions for those who already have a business within the SEZs.
- Elimination of payment of duties for those purchasing property in the SEZs.
All of these benefits, in addition to a special customs regime, a simplified regulatory framework, and world class infrastructure.
Mexico currently has 5 zones located in Coatzacoalcos, Lázaro Cárdenas, Puerto Chiapas, Salina Cruz and the Yucatán. However, more Special Economic Zones are
According to the Commission for Special Economic Zones (Spa. CZEE), each region specializes in one or more sectors based on the current and potential advantages they provide. As an example, Salina Cruz focuses on the textile industry, machinery, equipment, and renewable energy. While in Coatzacoalcos, Veracruz you find petrochemical, plastics, chemical, and agro industrial industries. In Puerto Chiapas, you find pulp and paper, electrical and electronic, textile, and agro industrial industries. And the one in Lázaro Cárdenas, specializes in the automotive, metal mechanic, mining, steel, chemical, electrical, and construction sectors.
On the other hand, Campeche and Tabasco, emphasise in the chemical, plastics, machinery and equipment, metals, and agro industrial segments; each of which present their own logistics needs to transport their products and raw materials, especially those involving over dimensional cargo, bulk liquids or temperature sensitive products like perishable items.