From Strategy Map to Implementation
Despite the unfavorable global context, Mexico sees an opportunity to gain market share in the United States, which can help attract productive investments. This perspective is shared by Mexican authorities and some strategists at global banks.
Among the countries subject to tariffs by U.S. President Donald Trump, Indonesia and Vietnam stand out as competitors in the relocation of manufacturing plants. These Asian countries face tariffs of 32% and 41%, respectively, if they wish to continue selling their products in the U.S.
Mexico’s geographical proximity to the U.S., reducing transportation costs and times for goods and products, along with competitive and specialized labor, continues to distinguish it from other countries, according to experts.
Plan México: Accelerating Domestic Market Investments
Plan México aims to foster industrial growth by accelerating investments in roads, railways, airports, and public works to create between 500,000 and 1 million jobs. The government estimates this strategy could increase domestic investment by 15 percentage points of GDP by 2030.
From Strategy Map to Execution
During the Plan México presentation, Secretary of Economy Marcelo Ebrard described it as a “navigation chart” to encourage domestic production, job creation, and large investments.
Economists from the International Institute of Finance (IIF), a global financial institutions association, consider that Plan México reflects a key intention to collaborate with the private sector to strengthen economic resilience.
However, they acknowledged that enthusiasm for relocating businesses seeking to bring their supply chains closer to the U.S. has decreased due to tariff pressure.
Pamela Díaz Loubet, Mexico economist at BNP Paribas, added that investment relocation to Mexico remains on hold due to external and internal uncertainty caused by the redefinition of trade rules and their temporary nature.
Strategy: Overcoming the Pause
With the National Anthropology Museum as a backdrop, the president announced decrees to expand domestic manufacturing in the steel and aluminum industries’ internal market by May 5 and the automotive industry by May 16.
Luis Felipe Alcántara Pozos, public policy director at RCPH Services, believes these are subsidies that will allow industries to navigate the episode positively. The plan also aims to reduce bureaucracy, improve access to financing for 30% of micro, small, and medium enterprises, train 150,000 professionals, promote science and technology, and utilize clean energy with community impact.
Internal Areas of Opportunity
Ana Lilia Moreno, coordinator of programs at Mexico Evalúa, stated that Mexico has an opportunity to become a manufacturing and logistics hub but needs to refine internal conditions to attract investments.
IIF experts highlighted that the internal context of judicial reform and infrastructure deficiencies in electricity, water supply, logistics, and public security do not help attract investments to the country.
All analysts consulted identified regulatory framework, infrastructure, energy supply offerings, physical security, among others, as areas of opportunity to enhance Mexico’s attractiveness.
Plan México: Objectives and Challenges
Plan México 2.0 aims to increase foreign direct investment by $100 billion annually by 2030, create 1.5 million additional jobs in specialized and strategic manufacturing sectors, and ensure that 50% of national supply chains and consumption are made in Mexico in sectors like textiles, footwear, real estate, and toys.
Experts from Mexico Evalúa and IIF emphasize the need to improve internal conditions, such as the judicial framework and infrastructure, to attract investments effectively.
Barclays’ Latin America Chief Economist, Gabriel Casillas, stressed that while Plan México is well-designed, it lacks implementation tools. He believes aligning incentives in Mexico will be crucial for the plan to take full effect.
