MEXICO Trends and Developments Contributed by: Alejandro Stamoglou, Jesús Pérez Alcántar and Julio Jiménez Manrique, Bello, Gallardo, Bonequi y García, S.C.
Bello, Gallardo, Bonequi y García, S.C. Avenida Santa Fe 428 Tower 1, 14th Floor Santa Fe Alcaldía Cuajimalpa de Morelos 05348 Mexico City
Tel: +52 55 5292 5232 Email: info@bgbg.mx Web: www.bgbg.mx
Economic Context Mexico maintains a close and multifaceted relation - ship with the United States, which means United States domestic and foreign policies significantly influence Mexico’s economic direction. During 2025, United States trade policy, particularly the imposition of tariffs on various goods and ser - vices, affected not only Mexico but global markets. These measures partially slowed investment linked to nearshoring, creating uncertainty in supply chains and forcing multinational companies to reconsider relocation strategies, especially in sectors such as automotive, electronics and manufacturing. Mexico’s economic growth remained weak, reflecting the com - bined effects of these trade policies and domestic fac - tors such as limited public investment and regulatory uncertainty. To mitigate these impacts, the Mexican government negotiated tariff reductions with the United States administration, primarily through co-operation agree - ments on cross-border security and migration. Addi - tionally, Mexico introduced similar tariff measures on countries without free trade agreements, mainly Asian nations such as China, aiming to promote domestic production and employment in industries like automo - tive, footwear and textiles. However, public debate continues regarding the effectiveness and feasibility of these trade policies, particularly considering that Mexico’s commercial relationship with the United States could be significantly affected if the free trade
Mexico’s economic, political and legal context in 2025 was complex and challenging. Developments in these areas shaped the country’s trajectory throughout the year and are expected to continue influencing its out - look in 2026. Mexico combines abundant natural resources, a competitive labour force and strategic geographic proximity to the United States, positioning itself as a key player in global supply chains and nearshoring strategies. This integration, together with adaptability to international economic and trade trends, creates opportunities for business development in sectors such as private credit, energy, oil and gas, and infra - structure. Furthermore, Mexico’s participation in trade agreements and its role in regional economic blocs reinforce its relevance in global commerce. Despite external challenges, including global econom - ic uncertainty and trade tensions, Mexico continues to offer significant potential for growth and diversification across multiple industries. However, structural issues such as low productivity, informality in the labour mar - ket, and fiscal constraints remain critical factors that could influence the pace of economic recovery. The following sections provide a comprehensive over - view of the main components of this complex context, highlighting economic performance, political dynam - ics and regulatory trends.
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