Mexico’s President Claudia Sheinbaum has unveiled a 30 billion peso ($1.4 billion) nearshoring incentive package aimed at strengthening Mexico’s role in North America’s supply chains. The program is part of her long-term economic vision, Plan México, which seeks to enhance regional integration, job creation, and economic self-sufficiency.
Key Highlights of the Incentive Package:
- Funding Allocation:
- 28.5 billion pesos for companies investing in new fixed assets.
- 1.5 billion pesos for training and innovation initiatives.
- Program Timeline:
- Guidelines will be released within two months.
- Funds available until September 30, 2030.
- Eligibility:
- Open to both foreign and domestic companies across all sectors that align with program objectives.
Objectives:
- Regional Integration: Promote manufacturing within North America’s supply chains to reduce reliance on imports from non-regional suppliers like China.
- Economic Growth: Officials estimate that replacing 10% of imports from China with North American production could boost GDP by:
- 1.2% in Mexico,
- 0.8% in the U.S.,
- 0.2% in Canada.
- Domestic Production: Encourage the substitution of imports with locally produced goods, strengthening the national economy.
Strategic Vision:
The nearshoring package mirrors strategies like the U.S.’s Inflation Reduction Act and CHIPS Act but adopts a distinct approach. It sets a defined budget and broadens eligibility, focusing on domestic companies’ integration into regional supply chains alongside foreign investment.
Broader Implications:
This initiative underscores Mexico’s commitment to becoming a central player in North America’s supply chain and bolstering its economic resilience. It reflects a collaborative regional effort to enhance mutual economic benefits, aiming for sustained growth across the continent.
