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	Doing Business in Mexico: More than just a hop across the border! Even among experienced exporters, Mexico is often considered one of the more challenging international markets to pursue. U.S. companies must not let the proximity of Mexico fool them – doing business in Mexico takes more than just a “hop across the border”! Opportunities abound for Virginia exporters looking to expand their international sales by entering the Mexican market, but success in this market depends upon a clear understanding of the importance of relationships in the Mexican business environment. Many companies jump into the Mexican market based on the perceived convenience and familiarity of selling U.S. goods and services to our friend, neighbor and NAFTA partner without carefully considering the deeply-rooted differences between business practices and expectations in our two countries. The Opportunities are Great! In 2003, U.S. exporters sold $97.45 billion in goods and services to Mexico. In 2003, Virginia exported $398.99 million in manufactured goods to Mexico. In 2003, Mexico was the 7th largest export destination for Virginia goods & services. Over 85% of U.S. goods enter Mexico “duty-free” under NAFTA. Top exports to Mexico from Virginia include: industrial machinery, electrical machinery, knit apparel, plastic products, pharmaceutical products, automotive parts, paper & paperboard, optical and medical instruments. The Challenges are Subtle… Business in Mexico is built upon the precious commodity of trust between business partners. While Americans also value trust, the difference in our business cultures lies in the process required to reach the level of trust where business can take place. What it takes for a U.S. firm to earn the trust of a fellow American business partner is significantly different, and generally less time-consuming, than developing the trust of a Mexican business partner. In Mexico trust is obtained via multiple meetings and after a significant investment in the personal elements of the relationship. The famous 3-hour business lunch in Mexico is better understood as an element of the Mexican process of “due diligence” rather than an example of the more “easy-going pace of life”. Many of the challenges that frustrate U.S. business people in Mexico can be better understood within the framework of due diligence. If each meeting, lunch and seemingly social conversation is considered a step through a gradual evaluation process, the development of the business relationship will make more sense. The Mexican business person counts on spending long periods of time, in person, with their business partners in order to reach a level of trust adequate for doing business. This long-term evolution of the relationship is an effective and conservative mechanism for filtering out the “fair weather friends”. Trust is not attained in a single meeting, it is not attained by email, and it is not developed by contract. Instead, a company interested in Mexico must be prepared to travel there frequently to nurture new relationships and spend the “face time” with Mexican partners. Personal gestures are important symbols of commitment in the Mexican business community – using the correct titles to address business partners, dressing appropriately, using Spanish as much as possible, conducting correspondence professionally, and including polite conversation about weather, family and culture are important. To the Mexican business person, these gestures are interpreted as indicators of the degree of respect, interest and commitment that the U.S. business partner brings to the Mexican business community. Assistance is Available! For more information on doing business in Mexico: Contact your local VEDP Trade Manager for assistance. Click here for contact details. Download our Mexico FastFacts document here. Contact the VEDP International Trade Manager in Mexico City, Margo Galvan, mgalvan@yesvirginia.org Sign up to participate in the next VEDP Trade Mission to Mexico, Feb 21-24, 2005. Contact Kim Weir, kimweir@yesvirginia.org DISCLAIMER – The contents of this article are intended to provide pertinent inform-ation for Beyond Virginia subscribers interested or already involved in international trade. While every effort is made to convey accurate and timely information, the contents of this article are not intended as specific advice to its readers. Our intent is solely to convey information.