The primary function of the abbreviation IMMEX in English is Importation/Employment, Mexican maquiladora, and Export Service, which both mean the same. This simply means a program for international-based manufacturers who will allow them to freely import raw materials and parts from Mexico, so they can be processed into manufactured goods for shipment to various countries around the world. The reason why the IMMEX Program in Mexico is called as such is because Mexico is the primary importer of machinery and parts from other countries. For example, Canada, the United States, and numerous European countries are among the countries that ship their manufactured goods, such as vehicles and appliances, from Mexico to their ultimate destinations. Hence, the term “IMMEX” has been used to refer to the programs and activities of the Mexican government and the private sectors that support the IMMEX Program in Mexico.
The first goal of the IMMEX program is to promote foreign direct investment, which in turn will help boost Mexican industries that are vital for the country’s development. It also aims to increase exports and improve Mexico’s competitiveness in international markets. Some IMMEX-beneficial activities include direct shipment of machinery and parts from Mexico to different parts of the world, which will provide employment to many Mexican workers and stimulate the economy. The programs also include allowing manufacturers to freely import and export raw materials like petroleum, iron ore, coal, aluminum oxide, and fertilizer, while undertaking new and beneficial projects for the development of local and regional businesses.
Many businesses across the globe have been very familiar with the term “Imported Goods,” and may have even shipped or delivered some of their manufactured goods to Mexico. The general import tax that was imposed on these goods was not so burdensome, and was seen as beneficial to both importers and exporters as it encouraged more foreign investment in Mexico. This practice has since changed, but without the IMMEX program. The IMMEX program has enabled more foreign companies to ship their products directly to Mexico, raising the demand for local products.
The reason why this program has become important to Mexico is because of its ability to serve the national economic development goals. The Federal Institute of Technology (IESL) found that the IMMEX has contributed to the growth of Mexico’s gross domestic product (GDP) by boosting the competitiveness of exports, stimulating the growth of local production, and increasing access to foreign markets. Between fiscal year 2021, Mexico’s gross domestic product growth was $ 44 billion. These benefits come primarily from increased exports of textile and allied products such as clothes, shoes, furniture, chemicals, and machinery and automobiles. Imports of automobiles, machinery, electrical equipment, and appliances were also significant contributors to the overall growth. Between fiscal years 2021, Mexico imported and exported goods worth a total amount of approximately 500,000 dollars per year.
The other benefits of the IMMEX are indirect incentives given to foreign companies wishing to send their goods to Mexico. The Mexico International Merchandise and Services Program assist companies in maintaining an office in Mexico and allow these companies to freely utilize Mexican workers and reduce their costs. Aside from this, the United States and other countries also offer monetary incentives to companies wishing to invest in Mexico.
In order to avail of the many benefits of Mexico’s IMMEX Program, it is important that foreign manufacturers set up an office in Mexico. However, this office is not required for any company wishing to invest in Mexico. If a company wishes to participate in the program, it is required that it set up a local office where it can hold its meetings and conduct business. Incentives to foreign manufacturers and exporters include a tax exemption on the purchases of goods from Mexico. For a company wishing to expand its operations in Mexico or invest in new businesses set up in Mexico, this tax exemption is very useful.