Czech business in Mexico has doubled in size over the past decade. The automotive, IT, and pharmaceutical industries are celebrating success. It is impossible without WhatsApp

The land of the Aztecs and Mayas is a fertile ground for medium-sized companies. Strategically located in the center of the American continent, it offers a skilled workforce, competitive operating costs, and good transport links to its northern neighbor, making it an attractive destination for foreign investment. Its trade focus offers significant potential, particularly in the automotive industry, IT, emerging technologies, healthcare, and pharmaceuticals. The country’s welcoming stance toward European businesses is expected to continue in the coming years.

A lot will depend on U.S. policy and Donald Trump, who has threatened to impose tariffs on Mexico. Mexico will continue to pursue nearshoring strategies, encouraging companies to relocate supply chains closer to nearby countries. Further growth in trade with the European Union and European investment can be expected.

“However, more than ever, it is necessary to weigh both the opportunities and the risks, as decision-making has become more complicated with Donald Trump taking office,” says economic expert Daniela Sedláková.

When a Czech company wants to expand to Mexico, it must expect a significant investment of both time and resources, as well as a slightly different system. Mexico is a bureaucratically complex country; without Spanish, negotiating anything is difficult, especially with the government authorities. In the initial phase, one can manage with English dealing with new and technology-oriented companies or banks. However, at the first opportunity, Mexicans will switch to Spanish and are reluctant to return to English. Mexicans can be very hardworking and open, and if you treat them fairly, they appreciate it and are helpful. Much like other Latin American nations, they prefer building personal relationships, so frequent trips and, ideally, a long-term presence, such as a permanent sales representative, are necessary.

“In Mexico, it is essential to have a local distributor who understands the market pitfalls and has the necessary contacts. The recently modernized Global Agreement between the EU and Mexico, established in 2000, has significantly simplified trade with European Union countries. Thanks to this agreement, most products are tariff-free. However, it is worth it for companies to have their own customs agent,” advises Martin Tušl, Head of the Economic Section of the Embassy of the Czech Republic in Mexico.

The labor market varies from region to region. Remote work is standard practice for administrative workers, for example, half remote-and-half office. The 13th salary at the year’s end and a vacation allowance are legal obligations in Mexico. Many Mexicans work on Saturdays. The working week in Mexico is officially still 48 hours. The new president, Claudia Sheinbaum, is demanding a change and the introduction of a 40-hour work week. It is a norm to provide employees with transportation to work if factories and facilities can’t be accessed by public transportation.

Among the dozens of Czech companies operating in Mexico is ALBAform, a family-owned manufacturer of metal components for the automotive sector, agricultural machinery and commercial vehicles. With production facilities in Žďár nad Sázavou, Czech Republic, and Atlanta, GA, in the USA, ALBAform considers Mexico an essential and full-of-potential region because most of its clients operate there in some way.

“We like to say that Mexico is to the USA what the Czech Republic is to Germany. It is a country with a relatively technically well-skilled and available workforce. In addition, the growing geopolitical tensions between the U.S. and China make Mexico an attractive market in many ways,” notes ALBAform COO Jan Vintrlík. He adds a crucial insight. “You can’t do business here without WhatsApp. It is a widespread form of communication, and most corporate and business matters are handled this way.”

Czech entrepreneurs can get assistance with expanding to Mexico. An interested Czech company can contact the business section of the Czech Embassy in Mexico, especially for B2G relations, or contacts across Mexican states and information on Mexico’s political and economic climate. The CzechTrade foreign office’s primary mission is to assist with B2B relations. The Czech embassy also assists Czech companies that want to enter the Mexican market through a local law firm using the PROPEA soft-landing program. This way, Czech companies pay only 30% of the price of the services provided.

Ambassador Tomáš Hart, who has served in Mexico since last year, points out: “Mexico has been perceived for too long primarily as a gateway to the US market. That is still true, but each year, we help more and more companies that are interested in Mexico itself. That is a good trend. Overlooking a market with a population of 130 million and a growing middle class today would be a strategic mistake.”