We recently looked at the behest of a client into Mexico’s approved military spending for the year. This information is published at the start of every calendar year (Mexico’s fiscal year is the natural year), upon approval by Mexico’s Congress. Requirements are generally gathered by each agency starting August, with submissions to Congress occurring around October. Approval normally is voted in December.
Mexico’s Air Force, which is in the umbrella of SEDENA with the Army, literally makes up the entirety of SEDENA’s capex budget for 2025, which is 3.3 billion MXN, approximately 166 million USD. By comparison, the spending on assets for SEMAR, which is the Navy and Marine Armada, totals 8.2 billion MXN, about 411 million USD. Nearly half of the SEMAR budget is for Naval aviation assets this year.
Mexican Air Force (SEDENA-FAM) requirements (multi-year programs):
- 6 EC 725 helicopters and related documentation and training, about 24 million USD this year
- C-295 airplanes and related documentation and training, about 32 million USD this year
- PC-7 aircraft substitution program in Quintana Roo, Baja California and Sonora, about 32 million USD this year
- Air assets to support operations of squadron 301, which is known to operate the IAI Arava 201, 8.8 million USD this year
- Substitution of Cessna C-182s and Aermacchi SF 260EU at the Military Aviation School, about 13 million USD this year
- 14 helicopters for crop eradication operations, about 8.6 million USD in 2025
- Complementary assets for crop eradication, about 1 million USD this year
- Maintenance of aircraft more than 30 years old, this year to invest 14.6 million USD
- Mexico’s Air Squadron 502, which owns and operates Boeing 737 and is in charge of personnel transport, has 20 million USD this year to “acquire air assets”
SEMAR’s spending is largely dedicated to aircraft for transport, reconnaissance, search and rescue, as well as explicitly for interdiction (multi-year programs), assets for surveillance operations (could be air or water), for some shipbuilding and shipyard facility improvements, and construction of facilities at the La Pesca Naval Airbase, at Puerto Libertad, and R&D facilities at INIDETAM and UNINDETEC. Interested companies can work with EDPNC’s Mexico office for further exploration of these opportunities.
Realities of Selling to the Mexican Military
Mexico’s constitution mandates a reactive military posture, deliberately limiting military buildup to avoid signaling aggression. Historically focused on disaster relief and civil works, the military only began policing roles under President Felipe Calderón (2006–2012), responding to pressure to combat increasingly powerful and well-armed criminal groups. Despite growing involvement, the military lacks clear legal authority to fight crime—except at points of entry into Mexico, where SEMAR and SEDENA oversees customs and border control. Mexico has not publicly supported the U.S. designation of cartels as terrorist groups, though such a move could aid efforts against money laundering and trafficking.
US companies typically have a hard time succeeding in selling directly to the Mexican military without a local partner, subsidiary, or presence. They face significant compliance and bureaucratic barriers, as well as lack the resources for the all-important “face time” necessary for these sales. When US companies appear in public purchasing databases as contractors, it is often the subsidiaries of Mexican firms (e.g., a Texas-based MRO center). By contrast, Israeli, French, and British companies, who by practical necessity are more likely to maintain a local presence, have historically appeared more frequently as awarded sellers in government documentation.
Without a local foothold, US firms are more likely to succeed in selling to the Mexican Government via US-funded programs. Mexico participates in FMS and works with DOD through Northcom. Mexican personnel frequently travel to the US for aviation training and cooperation programs—typically US-sponsored.
Besides military opportunities, US companies with relevant capabilities may find success selling to state and local police forces, particularly with an eye to programs supported by the Mexican federal government’s Secretariado Ejecutivo del Sistema Nacional de Seguridad Pública: Fondo de Aportaciones para la Seguridad Pública (FASP), and Fondo para el Fortacelimiento de las Instituciones para la Seguridad Pública (FOFISP).
Outlook for US Companies
Mexican companies are quite open to working with US companies, and many actively seek cooperation you when it comes to selling your capabilities to the Mexican Government. It is important for US companies entering into such agreements to understand that price elasticity may be quite “stretchy” for government purchasing, and that it can be quite costly for local partners to sell successfully to Mexican Government customers. Ideally you can work with the Mexican company as a reseller where they pay you upfront for the product being sold to their Government customers. Otherwise, it will be important to allow for the local Mexico partner as generous a margin as can be afforded in the end price to the customer.
Regarding “selling to Mexico via Washington,” previously, the US Embassy was not very keen on entertaining suppliers they were not already working with, given the Embassy in Mexico lacks a mandate and personnel to deal with prospective US suppliers. Since 2024, however, the Office of Defense Coordination appears to be becoming more accessible to interested firms. This trend is likely to continue under Trump, especially if a joint crime-fighting strategy is reinvigorated between the two countries. If transparency is prioritized—consistent with Mexican President Sheinbaum’s likely approach—small and medium U.S. companies could gain better access. Nonetheless, navigating Mexican bureaucracy will remain challenging, and success will still depend on having a local partner, in-country operations, or leveraging U.S.-backed programs.