Navigating Mexican Logistics: Culture + Politics Matter
Nearshoring is real. USMCA rules are in play. Transportation demand is surging. And Mexico is at the center of supply chain strategy for an increasing number of global companies.
Mexico has now overtaken China as the U.S.’s top trading partner, with $798 billion in total trade in 2023, powered by nearshoring demand and reshaped supply chains (U.S. Census Bureau 2024).
Relationships > Transactions
Starting with the basics, doing business in Mexico runs on trust, not speed. In the U.S., meetings get down to business fast. In Mexico, relationship-building leads. A lunch meeting may spend the first hour on family, football, or local affairs—before business ever comes up. Relationship-driven business models are crucial because over 95% of Mexico’s businesses are SMEs, where personal trust often outweighs contract formalities (OECD 2023).
The “Why Behind the Why” in Policy
Mexico’s logistics landscape shifts with politics. Since the start of the current century, there have been some dramatic shifts in the geo-economy that continue to impact day-to-day business across the border, including:
Energy reform: 2013–14 opened the sector. By 2018, policy swung back to government control.
USMCA: Tighter rules of origin, new customs hurdles—but also new opportunities for firms that can comply.
Tariffs: Steel, petrochemicals, and other carve-outs tied directly to government priorities.
Understanding the rationale matters—Mexico’s push to recentralize energy aligns with its goal of sovereignty and cost control but creates volatility for foreign investment.
USMCA enforcement is already reshaping the auto and agriculture trade. The U.S. International Trade Commission reported that USMCA raised regional content requirements for autos to 75% versus 62.5% under NAFTA (USITC 2023).
Case in Point: Entering Mexico the Wrong Way and the Right Way
Take a mid-sized U.S. auto-parts supplier (a “phantom” example). With the “Old Way,” a company hired a local broker who focused only on paperwork and missed political signals around tariffs. The result was delays, higher costs and a stalled market entry.
The new way focusing on building trust with state officials first and then aligning expansion plans with USMCA compliance by designing a transport solution that connects rail and trucking seamlessly. The outcome is faster entry, reduced risk and better overall positioning for growth.
This example is not uncommon—cross-border trucking alone carries $500 billion in U.S.–Mexico trade annually, meaning small mistakes can stall multimillion-dollar supply streams (Bureau of Transportation Statistics 2024).
How You Can Win in Mexico
Invest in relationships. Time spent upfront builds speed later. Personal networks often carry more weight than legal frameworks.
Understand politics, not just policy. Rules shift with administrations, and a policy that looks favorable today can change with a new government.
Think connectivity. Logistics, compliance, and culture are one system, not silos. Holistic planning avoids surprises at the border.
Play long game. Mexico rewards consistent presence—companies that show commitment earn trust with both regulators and partners.
Stat: Companies that commit to long-term supply chain investment in Mexico have seen 20–30% logistics cost savings vs. Asia sourcing under USMCA rules (Boston Consulting Group 2022).
Bottom Line: Mexico is a land of opportunity for supply chain leaders. But winning here requires more than trucks and trade lanes. It takes cultural fluency. Political insight. And strategic partners who know the terrain. For executives exploring Mexico for expansion, nearshoring, or new trade lanes—connect with Russell-Kroese Partners for guidance that goes beyond logistics.