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Huh, while researching why US wants to legalise horse slaughter and plants again, apparently Europe is US's biggest customer and Japan is second biggest. Horse slaughter had been alive and well, but just across the border. American horses would be shipped to Mexico then slaughtered for their meat. It's quite profitable but it would be more profitable if they didn't have to transport to slaughterhouses in Mexico.
I've rechecked my facts again and you're right. I should amend that to some European meat processing companies will not accept US horse meat.
My guess as to why the horses are being sent to Mexico is to escape the regulations regarding labor wages and benefits so they can lower the cost of doing business.