The tax regime in Mexico is much more reasonable than that of many other emerging markets.

With easy access to global markets, a young labor force and regulatory structures that are more favorable than those of many other Latin American economies, Mexico is an increasingly important country.

Alberto Tiburcio, Ernst & Young’s Managing Partner for Mexico and Central America (Mancera SC), argues that the country is poised for growth in both the short term and the long run.

A great market opportunity

Mexico is the second-largest economy in Latin America, Tiburcio points out. Its 44 free trade agreements give it access to 60% of global GDP and roughly one billion consumers. Mexico is a country that constantly has been an important receiver of foreign investment and it is expected that when structural reforms are passed some foreign investment will increase significantly.

Reasonable tax laws

Tax is one area where Mexico is extremely competitive. The tax regime is much more reasonable than that of many other emerging markets, Tiburcio notes. The filing requirements tend to be simpler. Corporate and income tax rates are very competitive worldwide. This is one area where Mexico is very competitive.

Energy liberalization

After the 2012 presidential election, two important sectors — oil and utilities — are expected to open to private investors. Tiburcio says the liberalization of these sectors should create many opportunities for outside and private investors in oil exploration, energy infrastructure and energy utilities, likely enabling Mexico to grow faster.

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