North America

The world's largest market

nafta corridor

nafta corridor

THE NAFTA CORRIDOR

  • A multi-modal development factor.
  • A system to connect cultures
  • An opportunity for companies from all over the world

North America is still the biggest market in the world. With a combined population of 440 million and GDP per capita that goes from 14,000 dollars in Mexico to 46,000 dollars in the US.

The NAFTA agreement, signed on 1993 by the US, Canada and Mexico, allows free trade between the three nations.

The US amounts for 84% of the combined GDP. Texas equals Canada while Illinois matches Mexico’s GDP. But, Canada with a developed and sophisticated economy and Mexico, one of the promising emerging economies, make the entire area a prime target for the world exporters.

Doing business in this area may puzzled entrants if considering this area as a whole. While Canada and the US share many similarities, companies should keep an eye on regulatory differences. Mexico’s culture and environment is quite different but plays an important role because of internal business opportunities and the fact of sharing a long border with its neighbor.

Many times, Mexico is viewed as the gateway to North American market. While this approach may prove useful specially for “maquiladora” companies , most of the times the right strategy is to look for a market position in the US.

Companies should try to behave as “domestic American companies” when doing business in the US.

If they succeed, no other market in the world can match the return of the investment.