Background on the Relevant Person and Context
Johannes Hauser, the General Director of the Mexican German Chamber of Industry and Commerce (Camexa), has been advocating for Mexico’s continued appeal as an investment destination despite the uncertainties caused by the United States’ trade policies.
Camexa represents German businesses operating in Mexico, which have shown interest in maintaining their investments in the country. These companies find Mexico’s advantages, such as competitive labor costs and a skilled workforce, appealing compared to the United States.
Camexa’s Stance on U.S. Trade Policies
Hauser acknowledged that German businesses in Mexico are cautious about their investments due to the U.S.’s trade policies, particularly those imposed by the Trump administration that aimed to encourage companies to relocate their production within the U.S.
However, Hauser emphasized that Mexico still holds significant advantages for investment. He highlighted factors such as lower labor costs and a competitive workforce, which make Mexico an attractive alternative to the U.S. market.
He also pointed out that some arguments against relocating production to the U.S. remain valid for many companies, including high costs associated with relocation and a shortage of skilled labor in various sectors. Additionally, obtaining work permits for foreign employees poses challenges.
Shifting Investment Trends
Although Germany has been the leading investor in the automotive parts industry as part of nearshoring strategies, its position shifted to second place in 2025 due to increased caution among German businesses.
According to Camexa’s monthly bulletin, German entrepreneurs have expressed concerns about Mexico’s attractiveness given the evolving and often confusing U.S. trade policies.
Camexa’s response affirmed that Mexico’s investment advantages have not disappeared, although some may have been reduced—a situation likely applicable to other countries outside the U.S.
Security Concerns Among German Investors
German business leaders have met with members of the National Guard to discuss truck hijackings, a significant concern for their operations in Mexico.
As of late May 2025, the National Guard reported 2,653 truck hijackings this year. The majority occurred in the states of Mexico (1,295) and Puebla (736), according to National Guard data.
Despite an increase in road freight transportation between 2018 and 2024, the National Guard noted a significant decrease in truck hijackings—from 13,000 in 2018 to 8,000 in 2024.
The National Guard explained that they conduct key programs like Operation Escalon, where their vehicles escort truck caravans during specific time slots. This service applies to seven high-risk routes, such as the Estado de México – Puebla – Veracruz – Tabasco route, where escorted caravans travel every three hours between 8 p.m. and 10 p.m.
Key Questions and Answers
- Q: How are German businesses addressing concerns about U.S. trade policies? A: Despite cautious investments due to U.S. trade policies, German businesses in Mexico continue to find advantages such as competitive labor costs and a skilled workforce appealing.
- Q: What factors make Mexico an attractive investment destination? A: Mexico’s competitive labor costs, skilled workforce, and proximity to the U.S. market make it an attractive investment destination for German businesses.
- Q: How have investment trends shifted between Germany and Mexico? A: Although Germany was the leading investor in the automotive parts industry, its position shifted to second place in 2025 due to increased caution among German businesses.
- Q: What security concerns do German investors face in Mexico? A: Truck hijackings are a significant concern for German businesses in Mexico. The National Guard has implemented programs like Operation Escalon to address this issue.
