MEXICO AND GERMANY: A STUDY OF BILATERAL TRADE DEVELOPMENT

During World War II, trade relations between Mexico and Germany were critically affected. According to data collected by Avella (2022), "German imports fell from 18.909% of Mexico’s trade balance in 1938 to 1.260% in 1940 and 0.005% in 1942, while Mexican exports to Germany dropped from 7.690% of the total to 0.028% in 1940 and zero in 1942." After the severe war events, Germany managed to rise from the ashes and recover rapidly, becoming one of the world’s leading political and economic powers. This growth was driven by investment in technology and innovation, as well as financial support from the "Marshall Plan," proposed by then U.S. Secretary of the Economy, George C. Marshall.

However, U.S. aid was not the only support Germany received. It is important to remember that while Germany was experiencing its "German Miracle," Mexico was also going through its own economic boom, known as the "Mexican Miracle," during approximately the same decades (1954-1970). During this period, Mexico developed in various areas, becoming a key supplier of oil, minerals, and agricultural products, while Germany began exporting what it is known for today: machinery, chemicals, and technology.

Over time, both countries have overcome trade disruptions and have become strong trade partners. This research explores various topics related to the commercial relationship between Mexico and Germany.

Which Mexican Companies Operate in Germany?

The main Mexican companies in Germany are those that are already well-established and have a strong presence in Mexico, such as Cemex, Grupo Alfa, Corporación EG, Mexichem, and Grupo Bocar. 

Which German Companies Operate in Mexico?

According to Opportimes, based on data from the Federal Foreign Office and the Mexican Secretariat of Economy (SAT), around 2,200 German companies are registered in Mexico, of which 33% operate directly in the country. The main ones include: Volkswagen, BMW, Daimler (Mercedes-Benz), Siemens, Henkel, Bosch, Bayer, BASF, Merck, and ThyssenKrupp AG.

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How to Do Business?

Business customs and practices in Germany include key aspects such as punctuality, honesty, patience, proper dress code, and formality. These are essential to building strong business relationships.

According to the business blog Preply Business, "Unsolicited calls are considered an affront in German business culture." This highlights the importance of time management and respect for priorities. It is recommended to use intermediaries such as the Industrie und Handelskammer (Chamber of Commerce and Industry) or a bank.

When introducing oneself, business cards are essential for first impressions. These should include official professional and academic titles and the affiliated organization. Providing a German translation of the business card is seen as a positive gesture, facilitating understanding and communication.

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What Does Mexico Export to Germany?

According to the Mexican government’s report on Mexico-Germany relations, Germany is Mexico’s main trading partner in the European Union, just as Mexico is Germany’s top partner in Latin America. The economies of these two nations are complementary and operate within the institutional framework of the EU.

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According to Statista, the top Mexican exports to Germany in 2023 were:

 → Road vehicles (including hovercraft) – 26.58%

 → Machines, electrical devices, and their parts – 12.2%

 → Special products and goods not classified by type –7.04%

 → Office machines and automatic data processing equipment – 5.69%

 → Telecommunication equipment and audio-visual devices –5.67%

 → Petroleum, petroleum products, and related materials –5.6%

 → General-purpose machines, devices, and their parts –5.33%

 → Measuring, verification, control, and testing instruments – 3.89%

 → Vegetables and fruits – 3.63%

 → Engines and related equipment – 3.58%

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Among these, the most significant category is road vehicles, which accounted for 26.58% of exports, valued at $152 billion in 2023.

What Does Mexico Import from Germany?

According to Statista Research AI, Mexico imports a wide variety of products from Germany, covering several important sectors. In the automotive industry, Germany was the fourth-largest country of origin for Mexican imports in 2023, with a value of $3.86 billion. In the pharmaceutical sector, Germany ranked second in 2023, with imports totaling approximately $1.2 billion.

Germany, despite experiencing severe disruptions in international trade relations during both World Wars, managed to restore its ties with Mexico quickly and effectively. Both nations have prospered and evolved together. While Mexico supplies Germany with natural and manufactured resources, Germany provides Mexico with technology and innovation, ensuring that both countries continue to thrive through their trade partnership.