1. Increasing National Content
Mexico, a leading exporter, faces the challenge of boosting national content. Industrialization is desirable as it stimulates more chains and sectors than service activities, but only if a significant portion of the content is produced by other economic agents within the country. This strategy aims to encourage the external sector to contribute more to growth, strategically substituting imports to incorporate more inputs, increase value addition, and support industries affected by unfair trade practices and overproduction from state-owned economies.
2. Addressing Geopolitical Uncertainty
The second key point is to react to geopolitical uncertainty, reduce costs, and capitalize on opportunities. Mexico can be a global winner post-global trade changes, with minimal tariffs in most of its North American trade compared to higher average tariffs imposed on most countries worldwide. An active industrial policy should support the automotive industry, where Mexico has developed world-class capabilities, and strengthen other sectors with arbitrage advantages, such as pharmaceuticals, medical devices, electronics, aerospace, and various agroindustrial areas.
3. Implementing Concrete Tools for Productive Transformation
The third key point involves implementing concrete tools to transform the productive structure. This includes establishing development poles to bring industry to other regions, promoting and facilitating investment—especially in high-tech activities, protecting key sectors, building links between educational institutions and the private sector, financing opportunities, modernizing regulatory agents, combating contraband, and investing in productivity-linked infrastructure.
4. Balancing Exports and Domestic Market
The fourth key point is to break the dichotomy between exporting and strengthening the domestic market. Both should be pursued, especially in a clearly protectionist global environment. While Mexico’s export vocation is strong in many sectors and regions, the domestic market is also a significant strength. Sectors like textiles, footwear, and consumer goods are strategic, as is enhancing the competitiveness of sectors like finance—where inclusion remains a massive challenge—and tourism, where Mexico has built a strong foundation but needs to develop more robust domestic supply chains.
Key Questions and Answers
- What is Plan México? Plan México is an industrial policy with four key points aimed at boosting Mexico’s competitiveness in the global market.
- Why is increasing national content important? Increasing national content ensures that more value is added domestically, supporting industries and reducing reliance on imports.
- How does Plan México address geopolitical uncertainty? The policy focuses on supporting key industries like automotive, pharmaceuticals, and electronics to capitalize on reduced tariffs in North America compared to other countries.
- What tools does Plan México implement for productive transformation? The policy implements concrete tools such as development poles, investment facilitation, sector protection, educational-private sector linkages, financing opportunities, regulatory modernization, anti-contraband measures, and infrastructure investments.
- Why is balancing exports and domestic market crucial under Plan México? Balancing both is essential to maintain competitiveness in a protectionist global environment and leverage Mexico’s export strengths while nurturing domestic industries.
