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Government purchases from Mexico: business opportunities

With an approved public spending budget of 7.09 trillion pesos (over £288 billion) for 2022, Mexico‘s government purchases market is one of the largest in Latin America and the Caribbean, a UK government report highlighted.

The budget covers a wide spectrum of public spending from the acquisition of goods and services for infrastructure and construction works, to the purchase of inputs for broader sectors, such as health, defense and education.

The Mexican government has made efforts to provide transparency in the contracting processes.

With the publication of its Comprehensive Strategy for the New National Public Procurement System in 2019, the government has the ambition to make the federal government’s public procurement system a more transparent and open environment; and contribute to national economic development by promoting strategic planning, social responsibility and the participation of a diverse number of potential suppliers.

However, the British government noted, the market is not without problems and, although the Mexican government has been promoting a standardized approach, companies may face different and sometimes difficult conditions and requirements depending on the type of goods or services. offered, with variations from one sector to another.

For example, the Mexican defense authorities have greater independence in their procurement processes, while public procurement in the health sector has moved to a consolidated purchasing approach through an alliance with the United Nations Office for Project Services (UNOPS).

Government purchases

In most cases, there is no strict requirement to have local representation in Mexico and most hiring opportunities are listed on CompraNet (federal hiring information system).

But differences in contracting processes at the sector and secretariat level make it difficult for foreign companies to participate on their own.

As such, local representation or association with a local company can facilitate market participation, the UK government recommended.

 

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