Mexico Deepens Trade Links With South America

Summary: Mexico is expanding its commercial role in South America, with exports to the region exceeding US$6.7 billion in 1H2026, while its integration with North American supply chains positions the country as a potential gateway for Latin American companies seeking access to the US market. Growing trade with Brazil, Colombia, Peru and Chile, alongside opportunities in manufacturing, technology, logistics and services, could support deeper investment, supplier development and cross-border value chains between Latin America and North America. 

Mexico is strengthening its commercial position in South America as exports to the region surpassed US$6.7 billion in 1H2026, an annual increase of nearly 18%, while the country’s integration with North American supply chains creates opportunities for Latin American companies seeking access to the US market.

Mexico exported US$12.84 billion to South America in 2025, with Brazil, Colombia, Peru and Chile accounting for about 80% of those shipments. Brazil led with US$4.66 billion, followed by Colombia at US$3.21 billion, Peru at US$1.23 billion and Chile at US$1.12 billion.

The figures highlight both the concentration of Mexico’s South American trade and the potential to expand commercial relationships with other economies across the region. They also come as companies increasingly evaluate Mexico not only as an export market but as a manufacturing and investment platform. 

Mexico Links Latin America With North America

Mexico’s role in North American production networks provides a foundation for this expansion. Automotive, auto parts, electronics, medical devices, advanced manufacturing and agribusiness companies operating in Mexico are integrated into supply chains connected to the United States, allowing production based in the country to serve both regional and international markets.

That industrial base is reinforced by Mexico’s network of 14 free trade agreements covering 52 countries. Together, these agreements provide preferential market access and support the use of Mexico as a platform for manufacturing, distribution and exports.

This combination is becoming increasingly relevant for Latin American companies seeking to expand beyond their domestic markets. By establishing operations or commercial partnerships in Mexico, companies can participate in supply chains that extend into the United States while maintaining access to Latin American markets.

“Mexico has a strategic position that few countries in Latin America can replicate. Its integration with the United States, its industrial capacity and its commercial ties with the region allow it to act as a platform for Latin American companies to expand their presence and compete in larger markets,” said Concepción Valadez, CEO and G100 Country Chair Communications, Advocacy & Mediation.

The opportunity extends beyond merchandise trade. Greater regional integration could generate productive investment, supplier development, business alliances and shared value chains, particularly in sectors capable of serving both Latin American and North American customers. 

Peru Uses Mexico as Regional Business Gateway

Peru illustrates how Mexico’s position can translate into concrete commercial opportunities for Latin American companies. Despite suspended diplomatic relations between Mexico and Peru, business ties have continued, particularly through services, trade promotion and corporate partnerships.

PROMPERÚ, Peru’s export and tourism promotion agency, identified Mexico as the leading Latin American market for Peruvian companies during the Peru Service Summit Mexico 2026, held in Mexico City. The event sought to generate more than US$5 million in new business and connect Peruvian service exporters with international clients, reported MBN. 

David Edery Muñoz, Manager of Services Exports at PROMPERÚ, said commercial ties have continued to grow despite political tensions between the countries that began in late 2022. He noted that Mexico and Brazil are the two principal Latin American markets for Peruvian companies, although Mexico offers advantages related to business affinity, time-zone alignment and nearshoring opportunities.

The Peru Service Summit has generated US$147.6 million in commercial activity since its first edition in Mexico. More than 68 Peruvian services companies have subsequently developed buying or selling relationships with Mexican companies through meetings organized around the summit.

For 2026, PROMPERÚ expects the event to generate at least US$5 million in new business, with the possibility of exceeding that target. The results demonstrate how commercial channels can remain active even when political relations face disruptions. 

Investment and Supply Chains Expand the Opportunity

The growing trade relationship with South America also presents an opportunity for Mexico to attract more regional investment. Rather than relying exclusively on finished-product exports, companies can establish operations, develop local suppliers or form partnerships that integrate South American businesses into Mexican production networks.

For Mexican companies, meanwhile, South America provides an additional avenue for export diversification. The concentration of Mexico’s trade in the United States makes markets such as Brazil, Colombia, Chile and Peru strategically relevant, even though their individual trade volumes remain considerably smaller than Mexico’s North American exchange.

“The opportunity is to build a deeper business relationship based on investment, value chains, innovation and strategic alliances. Mexico can become the point from which Latin American companies take the next step into North America,” Valadez said.

The development of that role will depend on more than trade agreements. Companies evaluating Mexico as a regional platform will also consider energy availability, logistics infrastructure, connectivity, skilled labor, financing and the overall conditions for investment.

Advanced manufacturing, technology, financial services, energy, infrastructure and logistics could provide particularly strong opportunities for deeper regional integration. For Mexico, the economic objective is to use its industrial base and access to the US market not only to attract capital, but also to increase the participation of Latin American companies and suppliers in larger, cross-border value chains.