Plan México: Better late than never

Nearly seven years after the onset of the nearshoring phenomenon, in the last week of 2024, the National Strategy for Industrialization and Shared Prosperity was unveiled, summarized as "Plan México." The first comprehensive project from Mexico's government focused on strengthening the country's role in global value chains.

Key points

• Key points:
• Previous efforts were made, but they were isolated and lacked the public-private synergies sought now. An example is the decree that, in October 2023, granted tax incentives to specific export sectors.
• The initial document of the Mexico Plan presents eleven ambitious goals for 2030. One of the most ambitious goals is to increase the national content in the GVC of the automotive, space, and electronic industries by 15%.
• A second goal to highlight is the objective of US$100 billion per year in Foreign Direct Investment (FDI) by 2030.
• The objectives are desirable and would boost the Mexican economy, but they require a budget-backed strategy with a clear roadmap.
• Meanwhile, the nearshoring train waits for no one, and 2025 presents a year of challenges for the Mexican economy with the latent threat of tariffs, fiscal pressures, and the complexities involved in the review of the T-MEC towards 2026.

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