Investment in Mexico Continues Despite Tariffs

Jun 07, 2025

Doing Business In Mexico

The threat and uncertainty of U.S. tariffs on imported products has had a chilling effect on companies’ plans for international investment around the globe. When it is unclear whether today’s expansion of manufacturing facilities overseas or deal for materials or components will result in unanticipated costs weeks or months into the future, effective planning is nearly impossible. Yet Netflix’s announcement earlier this year of their intention to invest $1 billion in Mexico over the next four years highlights the opportunities that still exist in international investment.

Netflix’s Pledge and History in Mexico

On February 20 this year, co-CEO of Netflix Ted Sarandos held a press conference with Mexican president Claudia Sheinbaum to announce the company’s commitment to produce series and films in the country from 2025 to 2028, partnering with local production companies and others in Mexico’s creative community. In addition to this $1 billion investment, the company will also be investing $2 million in Churubusco Studios in Mexico City, helping to update and modernize one of the oldest, largest production facilities in the country. This comes on top of the $1 million fund they created last year to fund programs to help develop behind-camera talents in the entertainment industry to build a base of local professionals.

These moves mark only the latest steps in Netflix’s long association with Mexico. The service first became available in Mexico in September 2011. Then, in 2015, Netflix produced its first series outside of the U.S., Club de Cuervos, there. In 2019, the company opened its first offices in Mexico, followed swiftly by establishing its Latin American headquarters in the country in 2020. The company’s local employee base has grown from 30 to almost 400 in the past six years.

In the press conference, Sarandos noted that their programming strategy is all about local production and cited the critical success of many of their feature-length films. This includes Alfonso Cuaron’s Roma, which won the Oscar for best international feature in 2019, and Guillermo del Toro’s Pinocchio, which won for best animated feature in 2023. He also cited the work that Netflix has done with Mexican creators on hundreds of other series and films such as The House of Flowers, Where the Track Ends, Love Sick, and The Dead Girls. Not only has this work nurtured the film industry, but it has also had positive spillover effects in industries that support production, including hospitality, transportation, and manufacturing.

The Advantage of Investing in Mexico

While Netflix’s press conference framed their work in terms of the benefits it provides to Mexico, they are taking advantage of circumstances that have attracted a growing amount of film production work from both American and European companies. Lower production costs; a skilled workforce in the film and television industry; diverse filming locations; established infrastructure, including studios, post-production facilities, and other resources; and attractive tax incentives can make it much more cost-effective to film in Mexico than in the U.S., while its proximity makes it convenient for productions involving U.S. talent or equipment.

Many of these same factors are a significant advantage for other service-based industries looking for expansion opportunities beyond U.S. borders. Highly educated, bilingual talent in fields such as finance, information technology (IT), and communications at labor costs far below that of the U.S. can help companies stay competitive without sacrificing quality or the convenience of having teams located in compatible time zones. Yet while Mexico is known for offering a favorable business climate, companies looking to establish or expand operations in the country can potentially run afoul of the complex processes necessary to establish themselves legally if they do not have knowledgeable local counsel.

MBL is the partner your company needs for effective nearshoring in Mexico, helping you navigate every aspect of assessing your opportunities and handling the legal aspects so you can focus on operations. To find out more about how we can streamline moving your service teams south, contact us here today.