Guidance Necessary to Navigate Mexico's Rules of Origin, Trade

Q: How did Vázquez Tercero & Zepeda evolve from an foreign trade and customs firm into a full-service legal practice? 

A: The firm was founded in 1973 as a boutique family practice focused on international trade. About 15 years ago, we decided to expand by bringing in new partners and opening additional offices, which allowed us to evolve into a full-service legal firm. While we do not cover every area, we offer services in trade, intellectual property, administrative litigation, and corporate law.

Our core focus remains on the manufacturing sector, particularly companies working within the Manufacturing, Maquiladora and Export Services Industry (IMMEX) program. We maintain a strong local presence with nine offices across Mexico in cities like Monterrey, Tijuana, Reynosa, Puebla, and Leon, alongside our main offices in Mexico City and Guadalajara. We also have a small office in Hong Kong to serve clients in the Greater Bay Area of China. Being close to our clients, especially in the maquiladora industry, is key to effectively supporting their operations.

Q: How does the firm position itself to support the influx of foreign capital arriving thanks to nearshoring?

A: To better support foreign investment, especially in the context of nearshoring, we brought in Iván Szymanski to strengthen our corporate law capabilities. While the nearshoring narrative may be somewhat overstated, we are actively assisting mostly Asian companies in establishing operations in Mexico. These companies often see Mexico as a strategic gateway to the North American market.

Q: How is the firm addressing recent policies aiming to localize supply chains, especially in sectors like textiles?

A: We address this shift through our deep expertise in rules of origin, which are critical for companies looking to benefit from trade agreements. Vázquez Tercero & Zepeda is recognized as a leading firm in this area. Without meeting origin requirements, companies cannot fully leverage tariff preferences, whether with the United States or other trade partners, so our role is essential in ensuring these new supply chains are truly effective and compliant.

Q: What differentiates Vázquez Tercero & Zepeda from other full-service law firms in Mexico?

A: One key differentiator is our economic perspective, which allows us to approach legal issues with a broader strategic view. Our deep experience with manufacturing clients has made us industry specialists. We know the steel, textile, electronics, and chemical sectors well. This technical understanding builds trust with clients because they know we truly understand their products and operations.

Unlike most law firms in Mexico that grow from corporate law outward, we took the opposite path, starting with international trade and building other practice areas around it. This gives us a distinct niche that allows us to compete effectively, even against much larger firms with over 100 or 200 lawyers. We are a team of about 40 to 45 people, but our specialized focus and expertise allow us to stand out in a competitive legal market. 

Q: Which industries are experiencing the highest demand for legal services right now, and why? 

A: Rather than a specific industry, the greatest demand comes from companies needing help navigating Mexico’s complex legal and regulatory environment. Many foreign clients assume they can operate in Mexico as they do in their home countries, like China, and that creates challenges.

For example, labor and immigration regulations often surprise clients, such as the requirement to maintain a ratio of nine Mexican workers for every foreign employee. A key part of our role is educating clients on these differences and helping them adapt to the Mexican legal framework. Regardless of the sector, this guidance is essential in the shifting and often challenging business landscape.

Q: How have trade tensions and Mexico’s push to localize supply chains influenced your approach? 

A: We aim to find ways for the United States, Mexico, and China to coexist economically. While tensions, especially under a Trump administration, make this difficult, this political climate will not last forever. Eventually, we will need a framework that includes China as part of a trilateral relationship that balances strategic interests among all three countries.

Q: How are the newly published modifications to Mexico’s Foreign Trade Rules (RGCE) expected to affect manufacturers? 

A: One of the most impactful changes affects the steel industry, specifically through the “automatic import notices,” which are far from automatic. These are now tied to a catalog of approved steel mills. In an effort to curb alleged triangulation from Asian countries, many mills, including eight from Vietnam, were recently removed from this list without warning.

This creates serious trade disruptions, as shipments already en route are now stuck. Businesses in affected sectors need to monitor these updates closely and maintain strong communication with authorities to avoid supply chain interruptions and ensure compliance.

Q: Why does Mexico remain a good destination for investment despite current challenges?

A: Mexico offers valuable resources, skilled labor, and proximity to the world’s largest market, the United States. These are major advantages for investors. However, challenges like corruption and insecurity continue to limit the country’s full potential. Without those issues, Mexico could truly become a global economic power.

Q: The USMCA is set for its first formal review in 2026. What changes do you anticipate and how should companies prepare to mitigate risks or leverage new opportunities? 

A: A key issue in the upcoming USMCA review will likely be rules of origin. The United States will likely be pushing not only for stricter regional content requirements but also for scrutiny of the origin of investment. If a product qualifies as regional but is backed by Chinese capital, it may face new restrictions. Companies in Mexico should be prepared for this shift by closely analyzing their supply chains and ownership structures.

Q: How will businesses and investment be impacted by the recent judicial transformations? 

A: The proposed judicial reforms could severely impact investor confidence by weakening the ability of companies to defend themselves against the state. While the effects are not fully visible yet, the country will likely start seeing significant consequences in the next three to five years, especially in terms of reduced investment.

Q: As Vázquez Tercero & Zepeda approaches its 50th anniversary, what are the firm's top strategic priorities? 

A: I am preparing for retirement and focusing on ensuring a smooth leadership transition. Fortunately, we have a talented group of young professionals ready to take the firm forward. Our strategic priorities include empowering them to shape Vázquez Tercero & Zepeda’s future, possibly by expanding into new areas like financial services, where we have had limited presence so far. My goal is to leave behind a strong, evolving firm that continues to grow for decades to come.

Vázquez Tercero & Zepeda is a Mexican Law Firm that specializes in international trade and customs. With over 50 years of experience, the firm offers comprehensive advice on complex legal matters, helping companies navigate domestic and international challenges with tailor-made solutions.