Mexico and Canada are major markets for American products and businesses. In 1994, the North American Free Trade Agreement (NAFTA), was drafted by the governments of the United States, Mexico, and Canada. This formed a three-nation trade bloc. The goal was to produce an economic convergence between the three North American countries thereby reducing poverty rates (particularly in Mexico), and promoting increased free trade for all three. NAFTA, however, has its detractors as well as supporters including North American business consultants. Pros and cons include:
Pros
- North America trade consulting experts in support say that NAFTA has created protection for investors, especially in the Mexican market
- Also that NAFTA has increased business investments in the United States
- Consultants claim that business revenue for all three countries has dramatically increased due to NAFTA
- Supporters state that more American jobs have been created due to increased exports, particularly to Mexico, as a result of NAFTA
Cons
- North America trade consulting experts against NAFTA claim that the treaty creates an "un-level playing field" for certain American business sectors in both Canadian and Mexican markets
- These consultants against NAFTA also blame the loss of American manufacturing jobs on the agreement.
Whether you're for or against NAFTA, market pundits agree that an American company or investor doing business in Mexico or (yes) Canada should be well-armed with trade and trade protection information, preferably from an American consulting firm. Again note that protection is necessary for both countries. Each has its own distinct type of trade barriers and market hazards.
Seek advice from U.S. government North American consultants before doing business in Mexico
The U.S. Department of Agriculture and the Department of Commerce are among the U.S. government agencies offering North American consulting services.
Export Readiness Training Program (PDF) for American export businesses entering the Mexican marketplace. For American farmers and food companies, the USDA offers a variety of protection programs for trading in Mexico. Their
Export Credit Guarantee program helps finance export buyers of American products. Their
Dairy Export Incentive Program helps American farmers exporting dairy products. The Department of Commerce's Commercial Service agency offers a trade sector-specific International
North American Business Directory to help American companies and investors entering the Mexican market. They also offer contact information for
trade sector-specific trade specialists for Mexico, as well as,
listings of trade events for the American and Mexican economies.
Seek advice from U.S. government North American consulting services before doing business in Canada
As with Mexico, the U.S. government offers a wealth of North America consulting services for those businesses and investors entering the Canadian marketplace.
trade specialist offices throughout Canada. They also offer a listing of services that do
background checks on potential Canadian business partners, as well as, a calendar of
trade events for American exporters and
Canadian buyers.
Seek advice from American consulting services before doing business in Mexico
Even though Mexico is often classified as an emerging market, it often shares common marketplace challenges with more industrialized countries like Canada.
advocacy assistance and North American trade consulting for U.S. companies engaged in trade disputes abroad. Find domestic locations for
U.S. Export Assistance offices at the U.S. Commercial Service's website for face-to-face trade specialist advice. The U.S. Commercial Service's
Gold Key Matching Service matches U.S. businesses with Mexican and Canadian business partners, distributors, agents, sales representatives, and North American business consultants.
Find Mexican and Canadian government-affiliated and independent North American business consultants
Like the U.S. government, the governments of Mexico and Canada have their own North American consulting services to help foreign companies and investors entering their markets. These are also qualified North American business consulting companies that are unaffiliated with any Mexican, Canadian, or U.S. government agency.
- Attending trade events geared to the Mexican or Canadian markets can yield valuable business information for American investors or entrepreneurs.
- Before entering the Mexican market, learn the Spanish language and contact North American consulting services to learn about cross-cultural customs, traditions, and business.
