Cross Border Law Group, P.C.
With a new government in place and multiple reforms on their way, Mexico is once again a welcome destination for business and investment. Mexico has been going through major changes on a national level and these changes will inevitably have an effect on the United States and the region of San Diego in particular. Our neighbor to the south is the second largest economy in Latin America and the economy has grown by close to 4% for the second consecutive year. Exports and imports account for 60% of GDP and Mexico sends almost 80% of its exports to the U.S. via San Diego.
Since taking office in December, the new president in Mexico, President Enrique Peña Nieto has placed his greatest focus on improving the economy and fighting poverty. The new government has planned a series of structural reforms designed to boost the economy to include proposed reforms to the tax system and state-run energy sector. These broad policy implications will open up some of Mexico’s least competitive industries, such as the telecom and television industries, while simultaneously allowing for increased foreign investment. The Mexican congress is also making strides to loosen longstanding restrictions on foreigners directly owning property along the coast and the borders. If approved by the Senate and a majority of the state legislatures, this could give rise to an increase in foreign investment in real estate. Given the burgeoning growth of its economy, the Mexican peso is also gaining momentum and last year was one of the best performing currencies against the dollar.
On a local level, San Diego is home to the busiest international border in the world with daily crossings of 340,000 residents and workers, 136,000 vehicles and 6,000 trucks. Mayor Bob Filner has made it a priority to strengthen ties between San Diego and Tijuana. Mayor Filner and Tijuana Mayor Carlos Bustamante recently opened the first San Diego City office south of the border, to encourage economic growth and cultural respect. The office space will be utilized for addressing cross border issues and strengthening ties between the two cities.
The economic changes in Mexico and the initiatives on a local level promise to present unique opportunities for business and investment as the communities of San Diego and Tijuana become further entwined. As a law firm, Cross Border Law Group and Rimon P.C. has seen an uptick in investors interested in business in Mexico and we anticipate that this will only grow as the changes in the political and economic climate continue to roll out.
Whether it is an individual purchasing a home south of the border or businesses seeking to expand into a new market, investors are now more open than ever to taking their products and capital abroad. Cross Border Law Group and Rimon P.C. focus on finding legal solutions for these investors and entrepreneurs engaged in business operations abroad, and offer a wide range of services to support international business. We have an intimate working knowledge of the laws and regulations affecting land and business development in Mexico and maintain an extensive network of legal, tax, accounting and other professionals in Mexico to facilitate the complex needs of our clients.