Tlaxcala

Tlaxcala is Mexico's smallest state by territory (4,061 km², 0.2% of Mexico) yet punches above its weight in manufacturing. The Puebla-Tlaxcala region is the historic birthplace of Mexico's textile industry, with centuries of fabric production creating path-dependent expertise. Exports reached $527 million in Q2 2025 (+11.7% quarterly), led by electrical switching apparatus ($241M), automotive seats ($220M), and fiberglass ($166M). The state ships 93% of exports to the U.S. ($1.26B in 2024). FDI reached $95.6 million in 2024, primarily from the U.S. ($26.6M) and Germany ($14.2M). The Tlaxcala-Apizaco metro area specializes in auto parts ($66.5M in 2024), linking to Puebla's massive automotive cluster (VW, Audi). Traditional agriculture, textiles, and indigenous commerce (especially Otomí products) persist alongside modern manufacturing. Lower labor costs and transportation infrastructure proximity make Tlaxcala attractive for textile and automotive suppliers seeking Puebla-region access.