Introduction to Plan México
In January 2025, under President Claudia Sheinbaum’s administration, Mexico launched Plan México (PM) with the goal of creating 1.5 million jobs in key sectors such as manufacturing, tourism, automotive industry, information technology, and energy. The plan aims to capitalize on nearshoring and friendshoring strategies spurred by the COVID-19 pandemic and Russia-Ukraine war, bringing US companies’ production closer to their markets within the T-MEC (Free Trade Agreement) countries.
Challenges Posed by Tariffs
However, the near/friendshoring logic between T-MEC countries might be hindered by the 25% tariffs imposed by the US. This could potentially undermine Plan México’s proposals, making it difficult for Mexican products to be exported to the US under the T-MEC or at favorable prices. Yet, these tariff impositions make the initiative more relevant.
Plan México’s Proposals
Among Plan México’s proposals are relocating industries, substituting imports, increasing more productive and better-paid jobs, generating value in local supplier companies, enhancing mid-level, technical, and higher education quality, and strengthening research and development (I+D).
Focusing on Research and Development
Academia has long confirmed that I+D and its market companion, innovation, are crucial for a country’s economic development. Plan México’s proposals stem from innovation processes within companies, with some actions closely linked to strengthening Mexico’s innovation ecosystem by focusing on I+D-intensive sectors like semiconductors, aerospace, electric mobility, and pharmaceuticals.
The Pharmaceutical Innovation Case
In the pharmaceutical and medical device industry, Plan México proposes incentives such as preferential tax rates for companies conducting I+D in Mexico. It also sets objectives like developing new research centers and attracting up to $2 billion for medical research funds, along with increasing patent and trademark registrations. Moreover, Plan México includes strategic technology projects where the triple helix of innovation (governments, businesses, and universities) collaborates.
Overcoming Tariffs through Enhanced Innovation
If successful, the pharmaceutical and other industries could transform Mexico from a strategic partner for T-MEC countries to a global market player, making products and services developed in Mexico so competitive that even the tariffs promised by the Trump administration won’t persuade US companies to relocate production.
Collaboration is Key
For Plan México to move beyond good intentions, the federal government must commit to genuine, open, and transparent collaboration with Mexican businesses and universities—both public and private. Historical evidence shows that no innovation effort can thrive in isolation. Therefore, it’s essential for the government to provide not only economic incentives but also effective cooperation platforms, removing bureaucratic barriers and actively promoting communication among ecosystem actors.
Key Questions and Answers
- What is Plan México? Plan México is a strategy launched by the Mexican government in 2025 to create 1.5 million jobs across key sectors, leveraging nearshoring and friendshoring strategies.
- What challenges does Plan México face? The plan faces potential difficulties due to US tariffs imposed on T-MEC countries, which could hinder Mexican product exports to the US.
- What are Plan México’s proposals? The plan proposes relocating industries, substituting imports, increasing productive and better-paid jobs, enhancing education quality, and strengthening research and development.
- How does Plan México address the pharmaceutical industry? The plan proposes incentives like preferential taxes for I+D, developing new research centers, and attracting medical research funds.
- How can Mexico overcome tariff challenges? By enhancing innovation and fostering genuine collaboration between government, businesses, and universities, Mexico can create competitive products and services that surpass tariff-induced relocation pressures.
*Alberto Méndez, Professor of Finance and Business Administration at EGADE Business School, Tecnológico de Monterrey.
