MEXICO Trends and Developments Contributed by: Javier Domínguez, Santiago Carrillo and Gabriel Torres, Ritch Mueller
possible. However, in most cases, there has been no effective co-ordination, resulting in delays and increased time and costs for inves - tors and developers. For its part, the Mexican federal government, led by President Claudia Sheinbaum, has presented “Plan Mexico” , a strategy aimed at attracting investments of up to MXN277 billion between 2025 and 2030. This plan prioritises reducing Asian imports, promot - ing national production and creating jobs, with the goal of positioning Mexico among the world’s ten largest economies. Specifically, with respect to nearshoring, Plan Mexico acknowledges that Mexico faces signifi - cant challenges in fully capitalising on the oppor - tunities offered by nearshoring, in addition to the challenges posed by the Trump administration’s policies and tariffs, as well as the ensuing uncer - tainty. The following are among the most press - ing challenges: • to enhance infrastructure in the northern part of the country, where industrial investment is concentrated; • to ensure energy supply and water availability in key industrial areas; and • to address security issues and implement structural reforms that improve the business climate. Plan Mexico includes a series of specific actions: • tax incentives and financing to attract foreign companies, promoting relocation (nearshor - ing) to Mexican territory; • development of key infrastructure, including strategic projects in transportation, logistics and energy, to enhance industrial competi - tiveness;
• industrial policies focused on sectors such as automotive, semiconductors, renewable energy and aerospace; • strengthening customs supervision, aligning with the trade policies of the partners in the USMCA; and • promoting private investment through alli - ances with key entrepreneurs and industrial groups in the country. Plan Mexico emerges at a pivotal moment for the national economy amid ongoing trade tensions between China, the United States and Canada. Mexico seeks to reduce its trade deficit with Chi - na, which reached USD105 billion in 2023, while aligning its policies with the USMCA to ensure fair trade with its northern neighbours. Regarding the hurdles in electricity, the National Electric Sector Strategy ( Estrategia Nacional del Sector Eléctrico ), enacted by the Federal government, estimates an investment of up to USD23.4 billion between 2024 and 2030 in gen - eration, transmission and distribution infrastruc - ture to ensure a reliable energy supply. Derived from the legal amendments enacted as part of the National Electric Sector Strategy, private par - ticipation in energy generation will be expanded to up to 46%, addressing the demand for energy required by new investments and nearshoring opportunities at competitive prices. The new threshold for distributed generation enables up to 18% of industrial rooftops in existing and new parks to be utilised, potentially adding 3,000 MW of installed capacity. New schemes for self-gen - eration under simplified regulatory frameworks, covering capacities ranging from 0.7 MW to 20 MW, present a critical avenue for meeting the energy needs of new industrial parks while ensuring a reliable supply. The new regulatory framework facilitates the adoption of energy storage systems, enhancing reliability, optimis -
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