The Mexican Ministry of Economy is the government’s primary interface with industry. It is tasked with building a bridge between Mexico’s productive capacity and the global market.
For any international corporation planning to invest in or manufacture in Mexico, understanding the nation’s key government institutions is a fundamental requirement for strategic success. While ministries such as Finance (SHCP) and Labor (STPS) govern the fiscal and human resources landscapes, it is the Secretaría de Economía (SE), or Ministry of Economy, that serves as the primary architect of the country’s industrial policy and its relationship with the global market.
The Ministry of Economy of Mexico is the cabinet-level federal entity responsible for formulating and managing a wide range of policies and programs designed to foster economic competition, attract foreign investment, and promote international trade. Its mandate is broad. It covers everything from negotiating free trade agreements to administering the critical programs that enable Mexico’s powerful export manufacturing sector. Consequently, for any foreign company, a clear understanding of the SE’s functions is essential for leveraging the full strategic advantage of a Mexican operation.
This guide offers a comprehensive and in-depth analysis of Mexico’s Ministry of Economy. We specifically designed it for business owners, general managers, and strategy directors. We will explore the Ministry’s core mandate and provide a detailed look at its crucial role in international trade. Also, we will explain its function in attracting foreign direct investment. Consequently, we will break down the mechanics of its most critical operational programs, including IMMEX and PROSEC. Ultimately, this document provides the clarity you need to understand the primary government partner for industry in Mexico. This will enable you to navigate the business environment with confidence and precision.
Secretaria de Economia
The Mexican Ministry of the Economy is the government department in charge of matters related to the economy. The Minister of the Economy is a member of the federal executive cabinet appointed by the President of the Republic.
| Founded | 1917 |
|---|---|
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Minister |
Marcelo Ebrard |
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Dependents |
Mexican Institute Of Industrial Property Federal Consumers Attorney |
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Jurisdiction |
Federal |
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Reports to |
President |
Founded in 1917
Operates Under The President
Federal Level Authority
Mexico’s Ministry of Economy’s primary mission is to develop and implement public policies that promote innovation, investment, and international competitiveness for Mexican industries. Unlike a finance ministry that focuses on revenue collection, the SE focuses on creating the conditions for economic growth. Its work is foundational to the “nearshoring” phenomenon, as its programs and trade policies are what make Mexico such an attractive platform for global manufacturing.
To achieve this broad objective, the Ministry of Economy of Mexico carries out several key functions:
First and foremost, the SE is Mexico’s lead negotiator and administrator for all international trade matters. It is the ministry responsible for pursuing, negotiating, and implementing the country’s vast network of free trade agreements (FTAs).
Mexico’s Ministry of Economy actively works to attract and retain foreign investment. It promotes Mexico’s advantages on the world stage and works to create a secure and predictable environment for international corporations.
This is one of its most critical functions for manufacturers. The SE manages key federal programs, such as IMMEX and PROSEC. These provide significant tax and tariff benefits to companies that manufacture for export.
Through its sub-agencies, the SE is responsible for the national system of patents, trademarks, and industrial designs, which is a critical function for any innovative compan
The Mexican Ministry of Economy also works to improve the competitiveness of domestic companies and foster the development of local supply chains that can integrate with large multinational corporations.
In short, the Mexican Ministry of Economy is the government’s primary interface with industry, tasked with building a bridge between Mexico’s productive capacity and the global market.
One of the most powerful functions of the Secretaría de Economía is its role as the architect of Mexico’s international trade policy. The Ministry is the lead agency responsible for negotiating and managing the country’s 14 Free Trade Agreements with 50 countries, which together provide Mexican-based producers with preferential access to over 70% of global GDP.
The SE leads the Mexican delegation in all trade negotiations. Its teams of experts are responsible for drafting the technical details of these complex agreements. These cover everything from tariff reduction schedules and rules of origin to chapters on digital trade and investment protection. The Ministry was the lead negotiator for both the original NAFTA and its successor, the USMCA. Also, it was involved in the negotiation of the comprehensive agreements with the European Union (TLCUEM) and the Trans-Pacific Partnership (CPTPP).
Once an agreement is in force, the SE is responsible for its ongoing administration. This includes:
Overseeing the proper implementation of the agreement’s terms.
Representing Mexico in the joint commissions that are formed to manage the FTA with partner countries.
Handling trade disputes that may arise under the agreement’s framework.
For any company exporting from Mexico, the SE is the ultimate authority on the interpretation and application of the country’s vast network of trade agreements.
The network of FTAs managed by the SE gives Mexico a unique competitive advantage that no other country in the Western Hemisphere can match. A manufacturing facility in Mexico can function as a “super-connector,” serving multiple major global markets from a single platform:
The USMCA: Providing seamless, preferential access to the United States and Canada.
The TLCUEM: Providing duty-free access to the 27-nation European Union.
The CPTPP: Providing preferential access to 11 key economies in the Asia-Pacific region, including Japan, Australia, and Vietnam.
This network allows a company to significantly diversify its export markets, mitigate geopolitical risks, and optimize its global supply chain in a way that is simply not possible from a U.S.-based facility alone.
A second core function of the Mexican Ministry of Economy is to actively promote and facilitate Foreign Direct Investment. The SE serves as the primary promotional agency of the Mexican government, working to attract the capital and technology that fuel the country’s industrial growth.
The SE works with Mexican embassies and consulates around the world to promote the country’s advantages to potential investors. It provides information on the business climate, legal framework, and specific sectoral opportunities.
The Ministry is also responsible for proposing policies that improve the ease of doing business in Mexico. This includes efforts to deregulate, simplify administrative processes, and provide legal certainty for investors.
The SE manages the Registro Nacional de Inversiones Extranjeras (RNIE). All foreign-invested Mexican companies are required to register with the RNIE and to periodically update their information. This registry allows the government to track the flow and nature of FDI into the country.
The success of these efforts is clear. Mexico is consistently one of the top emerging markets for FDI, attracting over USD 36 billion in 2024, with the manufacturing sector being the primary recipient.
While its policy roles are strategic, the most direct and tangible interaction a foreign manufacturer will have with the Secretaría de Economía is through the administration of its industrial promotion programs. These programs provide the essential fiscal benefits that make manufacturing in Mexico for export financially competitive.
The Manufacturing, Maquiladora, and Export Services Industry (IMMEX) Program is the most important of these. The SE is the sole government body responsible for granting and overseeing the IMMEX decree.
The IMMEX program allows a certified company to temporarily import raw materials, components, machinery, and equipment into Mexico without paying the 16% Value-Added Tax (IVA) or applicable import duties. This provides a massive and immediate cash flow advantage, as it eliminates the need to tie up significant capital in taxes at the border.
A company must apply directly to the Ministry of Economy for an IMMEX decree. The application process is rigorous and requires the company to demonstrate a clear business plan, to commit to exporting over USD 500,000 annually (or over 10% of its total sales), and to have the necessary facilities and processes in place. The SE reviews the application and, if approved, grants the decree, which enables the company to benefit from the program.
The fundamental requirement is that all goods imported under the IMMEX program must be “returned” or exported within a specific timeframe (typically 18 months for raw materials). This can be done either by physically exporting the transformed, finished product, or through “virtual” operations where goods are transferred to another IMMEX company within Mexico.
The SE, in coordination with the SAT, oversees the compliance of IMMEX companies. This includes ensuring that companies maintain a meticulous inventory control system (Annex 24) to track all temporary imports and prove that they have been properly exported.
In addition to IMMEX, the SE also administers the Sectoral Promotion Programs (PROSEC). While IMMEX provides benefits for goods that will be exported, PROSEC provides benefits for goods that may be sold into the Mexican domestic market.
The administration of these two programs by Mexico’s Ministry of Economy is absolutely fundamental to the financial viability and operational success of the vast majority of foreign manufacturing companies in Mexico.
The PROSEC program enables companies in specific, designated industrial sectors to import certain raw materials and machinery at a preferential tariff rate (ranging from 0% to 5%), regardless of whether the final product is exported or sold domestically.
The benefits of PROSEC are only available to companies operating within one of the 24 designated industries. These include key sectors like electronics, automotive and auto parts, aerospace, and plastics, among others.
PROSEC is a powerful tool. For an IMMEX company that also wants to sell a portion of its production into the growing Mexican market, the PROSEC program allows them to import their necessary inputs at a low tariff rate, making their domestically-sold products more price-competitive. A company can hold both an IMMEX decree and a PROSEC registration simultaneously, using them for different aspects of their operation.
Another critical function that falls under the broader umbrella of the Ministry of Economy is the protection of intellectual property (IP). This is managed by a decentralized administrative agency that reports to the SE: the Instituto Mexicano de la Propiedad Industrial (IMPI), or the Mexican Institute of Industrial Property.
IMPI is the sole federal authority responsible for the administration of the industrial property system in Mexico. It functions as the nation’s patent and trademark office.
IMPI examines and grants patents for new inventions, providing inventors with exclusive rights to their technology for a period of 20 years.
It is responsible for the registration of all trademarks, trade names, and slogans, which is essential for any company looking to build and protect its brand identity in the Mexican market.
IMPI also registers industrial designs, protecting the ornamental or aesthetic aspect of a product.
The institute has the authority to conduct investigations and impose sanctions for the infringement of industrial property rights.
For any innovative company operating in Mexico, from a tech firm developing new software to a manufacturer creating a new product design, registering their intellectual property with IMPI is a critical step in protecting their valuable assets. The fact that this institution is overseen by the Ministry of Economy demonstrates the government’s commitment to creating a secure environment for innovation and technology.
The Secretaría de Economía is a multifaceted and powerful ministry that serves as the primary interface between the Mexican government and the industrial sector. Its work is fundamental to creating the competitive and globally-connected business environment that has made Mexico a premier destination for foreign investment.
From its strategic role in negotiating the free trade agreements that open up global markets, to its practical role in administering the essential IMMEX and PROSEC programs that enable export manufacturing, the SE is a constant and critical presence in the life of any manufacturing company. Furthermore, through its oversight of IMPI, it plays a key role in protecting the innovative assets that drive modern business.
Navigating the various programs and requirements of the Mexican Ministry of Economy requires specialized knowledge and expertise. A successful application for an IMMEX or PROSEC program, for instance, requires a meticulously prepared business plan and a clear understanding of the compliance obligations.
At Start-Ops, we provide the expert guidance necessary to engage effectively with the Secretaría de Economía and its various programs. We manage the entire application and compliance process for our clients, ensuring that they can fully leverage the powerful fiscal and trade advantages that Mexico offers. We handle the complexity of government programs so that you can focus on your core mission: building a world-class manufacturing operation.
Contact us for a strategic consultation to explore how we can help you align your business with the programs and policies of the Ministry of Economy for maximum success.
