I don't really see many factory goods made in Mexico on my day-to-day. Mostly, it's Chinese goods. Sure, Mexico produces machinery, etc. but remember that there

I don't really see many factory goods made in Mexico on my day-to-day. Mostly, it's Chinese goods. Sure, Mexico produces machinery, etc. but remember that there is no VAT in Mexico when it's a firm buying the good, so the entire VAT thing becomes moot for most goods. And the difference in costs wrt China is so large that even adding the 12% difference won't change things (12% = 17% VAT in China - 5.5% VAT where I live in the US).