The US, the country with which Mexico has co-produced the most films in the last year

Scenes filmed in Mexico aren’t always detected in the United States. Sometimes, audiences see Mexican landscapes without suspecting they’re Mexican, as was the case in Zoë Kravitz’s recent film, Blink Twice (2024). The psychological thriller – set on a paradise island – was filmed entirely in the states of Yucatán and Quintana Roo.

The opening of trade following the signing of NAFTA between Mexico, Canada and the United States allowed more production companies to look to Hollywood’s neighbors in search of opportunities. In 1996, Fox Studios set the Oscar-winning film Titanic on the beaches near Rosarito.

Donald Trump’s tariff war now threatens to eliminate the opportunity for new films to be shot in other countries. His administration has proposed a 100% tariff on productions that use locations other than those within the United States. This is happening under the now classic (and modified) motto: “Let’s make Hollywood great again!”

In recent years, according to data from the Mexican Film Institute (IMCINE), the United States is the country with which Mexico has co-produced the most films. In 2024, at least 21 films featured collaborations with artists from both countries. Spain followed, with 12 films. Since 2022, the number has continued to rise, reaching between 21 and 22 co-productions with the United States annually. Even in 2020, during the Covid pandemic, the U.S. — also under a Trump administration at the time — led the list with 10 films.

Among the advantages announced by the Mexican Film Commission for foreign productions is the 0% Value-Added Tax Law. It allows Mexican production companies to be tax-exempt when they collaborate with international firms that utilize spaces in Mexico. The films, meanwhile, are classified as “export products.” Additionally, the so-called Carnet ATA authorizes production companies to temporarily import their professional equipment and props for filming, tax-free.

Producing part or all of a film in Mexico reduces production costs. This isn’t only due to no taxes, but also because hiring local staff results in lower wages. In the United States, unions like SAG-AFTRA — which represents actors and artists in the film, radio and television sectors — protect their members with stipulated salaries and on-set security. In Mexico, very few members of production companies enjoy similar benefits.

According to the specialized website The Numbers, a movie like Nope (2022), a thriller filmed in California, had a production cost of $68 million, and Avatar: The Way of Water (2022), which used locations in California and New Zealand, cost $400 million. In the United States, production company data generally isn’t transparent due to competition issues, while in Mexico, the average price tag per film in 2022 was disclosed as being 14.8 million pesos ($760,000), and 13.8 million pesos ($710,000) in 2024.

The 2023 SAG-AFTRA strike halted productions and was accompanied by acts of solidarity by members of other performing arts communities. The FilmLA Production Report revealed that filming in Los Angeles fell by 15% that year, while it fell again by 5% in 2024. Across the United States, film production fell by 26% overall, according to ProdPro.

But Mexico isn’t Hollywood’s priority destination for foreign filming. The country that would lose the most from American tariffs is Iceland: the Icelandic Film Commission reported a 20% increase in foreign filming in 2024. Next in line is New Zealand — known for the landscapes that inspired the Lord of the Rings franchise — and South Korea, which increased its popularity after the Netflix-produced Squid Game.

Mexican films in the United States

In the case of Mexican films shown abroad, historical data indicates that, between 2009 and 2024, there were 139 commercial screenings in the United States, followed by Spain and Costa Rica. This data does not include screenings at international film festivals.

However, the trend appears to be reversing. In 2024, Italy was the country with the most Mexican film screenings in theaters with 11, followed by Argentina and the United Kingdom, with nine each. In fifth place was the United States, with eight screenings.

The streaming companies that produce the most feature films in Mexico are American: Netflix, which filmed at least five feature films in 2024; Disney+, which produced one, along with Amazon Prime Video, which also produced one. Regarding series, Netflix ranked second out of the 68 shows produced, with 21% of them. This company was followed by Disney at 19%, and Prime with 15%.

This past February, Netflix announced that it would increase its investment in Mexico by $1 billion over the next four years. At the time of the announcement, the company’s CEO, Ted Sarandos, stated that it was important for the company to work with local Mexican crews and production firms during filming.

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