Mexico's close proximity to the United States and network of free trade agreements with other countries continues to attract American firms who are looking for close integration into their own supply chains and speedy transit times.

During 2005, foreign direct investment in Mexico neared $17 billion, with telecoms, airlines, financial services, tourism, and retailing making sizeable gains. Forecasts call for foreign direct investment to slip to $14.4 billion in 2006, but then bouncing up to $16 billion in 2007.

The offshore assembly for re-export-or maquiladora-sector will continue to play an important role in Mexico's manufacturing base, although future new investments may be limited to operations producing niche textiles.