Insecurity, informal employment,  wage inequality, and a drop in Foreign Direct Investment (FDI) are the main factors limiting regional development in Mexico , according to the 2026 Regional Competitiveness Index (ICR) , prepared by the Mexican Institute for Competitiveness (IMCO) .

The study, which measures the capacity of regions to attract and retain investment and talent , pointed out that competitiveness should be understood as a regional phenomenon, in which the advances or setbacks of one state directly impact its neighbors, which it called the “neighborhood effect”.

The 2026 Regional Competitiveness Index (ICR) divided the country into six regions and includes data up to the end of 2024. The Northeast —Coahuila, Nuevo León, San Luis Potosí, and Tamaulipas—  consolidated its position as the leader in attracting businesses and skilled labor . Furthermore, it registered one of the highest rates of perceived safety, with 32% of the population over 18 years of age reporting feeling safe.

This region, along with the Northwest—Baja California, Baja California Sur, Chihuahua, Durango, Sinaloa, Sonora, and Zacatecas— allocated the largest share of business spending on security . However, the Northwest faces the highest homicide rate in the country, with 33.74 per 100,000 inhabitants.

The Bajío region —Colima, Guanajuato, Jalisco, Michoacán, Nayarit, Querétaro, and Aguascalientes—stood out for innovation and patents, but showed low levels of skilled labor, with only 22.22% of the population over 15 years of age. The central region —Mexico City, Tlaxcala, State of Mexico, Hidalgo, Puebla, and Morelos— presented high school enrollment and a skilled workforce , at 98.42% and 30.68%, respectively, although it struggled to retain talent. Furthermore, high housing prices prevented it from absorbing new residents.

The Maya (Campeche, Chiapas, Quintana Roo, Tabasco and Yucatán) and Isthmus (Guerrero, Oaxaca and Veracruz) regions showed shortcomings in logistics and energy infrastructure , in addition to low foreign investment and high levels of informality.

In the Isthmus, informality reached 73.08%, while FDI remained at 7.87%. In the Maya region, the figure for Foreign Direct Investment was only 10.32%, while informality was 63.81%, reflecting a gap in the capacity to attract foreign capital.

The IMCO suggested several proposals to advance a regional cooperation strategy . In the case of businesses, it indicated that talent retention should be strengthened by creating training hubs that allow for cost sharing and standardization of job profiles.

For the states, the organization proposed aligning agendas to compete as a region and not in isolation ; in addition to consolidating common priorities such as reducing informality and improving access to services.

For the federal government, he suggested directing nearshoring (relocation of production lines) and logistics  support to projects that connect leading regions with lagging entities , conditioning the incentives on the generation of formal employment.

Comment and follow us on X:  @GrupoT21

El cargo Northeast, Northwest and Bajío regions of Mexico stand out in regional competitiveness: IMCO apareció primero en T21.

In a critical and direct tone, Valeria Moy , general director of the Mexican Institute for Competitiveness (IMCO) , questioned the effectiveness of the so-called development poles , promoted by the federal government as a tool to attract investment and trigger regional growth.

The relocation of supply chains represents an unprecedented opportunity for Mexico; simply having industrial parks or designated areas on the map is not enough, Moy said at the XXIII International Congress of the Automotive Industry in Mexico (CIIAM) .

“Infrastructure, energy, and regulatory certainty remain the real challenges,” he said.

He warned that without a comprehensive competitiveness strategy , nearshoring could become a phenomenon limited to certain regions of the country, leaving out states that currently lack sufficient connectivity or adequate logistical conditions to attract large manufacturers.

His intervention brought to the table one of the most recurrent criticisms of the sector: the lack of coordination between industrial policy and territorial planning .

The “poles ,” he stressed, should respond to a clear diagnosis of productive capacities, energy availability, and technical talent, not just political or geographical criteria.

He also called for a rethinking of the triumphalist narrative and a realistic look at the challenges the country faces in translating international interest into effective investment and sustainable jobs.

Comment and follow us on X:  @karinaquintero  /  @GrupoT21

El cargo Development centers, a promise that never materializes: IMCO apareció primero en T21.

Given the growing importance of protectionism on the international agenda, with the United States as its main driver and its recent adoption by Mexico, the Mexican Institute for Competitiveness (IMCO) called for strengthening trade liberalization as a pillar to increase the added value of Mexican exports .

In a statement, IMCO warned that industrial policy should not be viewed as a substitute for trade liberalization. On the contrary, the success of Plan Mexico depends on expanding supply possibilities, not restricting them . To achieve this, it proposes a strategy that combines infrastructure development, talent development, and productive incentives.

In this way, the organization noted, it will offer competitive conditions and position itself as a strategic investment destination. Furthermore, the country must consolidate its role as an active player in the global economy and defend trade based on clear and predictable rules .

In September, the Mexican government presented an initiative to raise tariffs to 50% on 1,463 tariff lines , with the goal of reducing the trade deficit with China and replacing imports within the framework of Plan Mexico. This measure, however, could generate inflationary pressures and affect the competitiveness of production chains by increasing the price of key inputs from countries without a trade agreement with Mexico.

Mexico as an exporting power

The organization also noted that Mexico has one of the most extensive trade networks in the world: 14 free trade agreements with 52 countries, bilateral investment agreements, and regional conventions in Latin America, Europe, and Asia-Pacific. This infrastructure allows for supplier diversification, attracting investment, and consolidating the country’s international presence .

Therefore, in this context, he indicated that increasing the added value of exports should be a result of national competitiveness , not trade barriers.

To achieve this, IMCO made several proposals, such as aligning Plan Mexico with the relevant chapters of the United States-Mexico-Canada Agreement (USMCA) and the modernized Global Agreement with the European Union to ensure regulatory certainty and attract investment .

He also proposed that Mexico conclude negotiations on international treaties and agreements for greater trade expansion , including ratifying the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and moving forward with Costa Rica’s incorporation into the Pacific Alliance.

Finally, he emphasized the importance of modernizing the regulatory framework in sectors such as energy, GMOs, dairy products, and corn that are sensitive to international disputes.

Comment and follow us on X: @GrupoT21

El cargo More trade openness and less protectionism for Mexico: IMCO apareció primero en T21.

According to the report Five Years After the USMCA: Is North America Still Holding Up? , prepared by the Mexican Trade and Investment Commission (IMCO), between 2019 and 2024, Mexico’s exports to the United States increased by 38 percent, while Canada’s exports to the United States grew by 29 percent . Meanwhile, Mexico’s exports to Mexico and Canada increased by 30 percent and 19 percent, respectively.

During that period, Mexico saw an increase in its exports to the United States in strategic sectors included in Plan Mexico , such as pharmaceuticals, with an 88% increase; chemical products, with a 52% increase; electronics, with a 48% increase; and automotive, with a 35% increase. By 2024, these sectors, along with aerospace and semiconductors, will represent 45% of total Mexican exports to the United States , reaching $274.6 billion, the analysis indicated.

New rules

Although the economic outlook for the three countries that make up the USMCA has been positive since the launch of this trade agreement, a decisive date is approaching: its first mandatory review scheduled for July 2026 , in accordance with Article 34.7 of the treaty, but before that, no later than October 4, 2025, a process of public consultations will begin among relevant actors within the United States on the operation of the agreement, in order to prepare for next year’s review.

The review will be key to determining the treaty’s future . Member countries will consider whether to extend it for 16 years, until 2042, or opt for annual reviews until its original term expires in 2036.

Among the topics anticipated at the negotiating table are rules of origin in the automotive sector ; labor provisions under the Rapid Response Labor Mechanism (RRM), which has been used 37 times; access to agricultural markets; Mexican energy policy; intellectual property rights; and concerns about Chinese investments in North America, IMCO emphasized.

IMCO’s proposals

In its report, the organization raised several points that could help improve trade relations between the three countries , such as eliminating dumpingpractices ( exporting products at a lower price than they are sold in the domestic market), avoiding the use of sanitary and phytosanitary measures for protectionist purposes, and creating a high-level working group to promote energy security and critical infrastructure.

Regarding Mexico, IMCO suggested initiatives such as the modernization and expansion of 11 ports, strengthening cargo transportation security , and promoting the responsible use of international panels. Therefore, the country must commit to labor legislation, among other factors.

USMCA, an agreement that began with Trump

The USMCA was signed on November 30, 2018, and entered into force on July 1, 2020 , replacing the North American Free Trade Agreement (NAFTA), which had been in force since 1994. The USMCA was the result of a renegotiation process initiated in 2017 by the first Trump administration, in collaboration with the governments of Mexico and Canada. Despite complex and tense negotiations, the three countries reached the new trade agreement .

However, after Trump’s reelection in November 2024, a new era in trade relations between the three countries began. In February 2025, Trump ordered 25% tariffs on Mexico and Canada for failing to “curb drug trafficking and illegal immigration to the United States,” angering trading partners like Canada, which also responded with tariffs against the United States.

Trump also imposed tariffs on strategic products exported by Canada and Mexico to the United States. Last March, he announced a 25% tariff on automobiles and auto parts, and later on steel and aluminum. He is now seeking to impose a 50% tariff on copper, although he has yet to provide further details of this new plan, sparking a global trade war and uncertainty in financial markets.

Comment and follow us on X:  @GrupoT21

El cargo USMCA, amid benefits, challenges, and an upcoming review, turns five. apareció primero en T21.

The Mexican Institute for Competitiveness (IMCO) considered that for the logistics and trade sectors in the country  , investment in complementary infrastructure should be made in regions with high air cargo capacity , such as the State of Mexico, where the Felipe Ángeles International Airport (AIFA) is located  , in order to take advantage of and strengthen Plan Mexico , which seeks to accelerate in the context of the United States tariff policy.

Thanks to this infrastructure and taking the Querétaro International Airport as an example, the state can consolidate itself as a strategic hub  in central Mexico,  attracting high-value supply chains  through the development of distribution centers, industrial parks, and intelligent transportation systems, the agency emphasized during the presentation of the 2025 State Competitiveness Index (ICE) .

He also noted that it is necessary to develop a long-term regional infrastructure plan that identifies the logistical needs of each state and establishes roadmaps for the development of roads, railways and ports for their growth, following the example of the Nuevo León Mobility Master Plan and the California-Baja California Border Master Plan .

At the event, IMCO presented a series of proposals aimed at leveraging and strengthening Plan Mexico, based on the country’s division into Economic Corridors of Well-being , to adapt strategies according to the needs of each region.

Regarding security, IMCO proposed the permanent presence of state police forces at key logistics hubs , in addition to professionalizing and coordinating security forces with the private sector and the National Guard , in industrial areas with high crime rates.

In her participation, Valeria Moy , general director of IMCO, emphasized that while Plan Mexico represents a good strategy, it will not solve the economic and social challenges on its own. Therefore, she considered it essential that each state commit to improving its areas of opportunity and work together with the federal government and the private sector.

“I believe the State Competitiveness Index provides a great tool for states to take advantage of the ideas outlined in Plan Mexico, but if the states don’t work together with each other and the federal government, it will be very difficult for Plan Mexico to succeed,” he said.

ICE 2025 Results

The study evaluated each state based on 53 indicators distributed across six sub-indexes , providing a ranking that reflects the states that showed the most progress and those that lagged behind, with the goal of designing public policies that improve their competitiveness.

The ICE results showed Mexico City as the most competitive state in Mexico , followed by Baja California Sur, Nuevo León, and Jalisco. On the other hand, the states with the lowest levels of competitiveness were Chiapas, Guerrero, Oaxaca, and Michoacán.

Furthermore, the states’ performance in the study’s six sub-indexes revealed significant contrasts. Mexico City ranked highest in the sub-indexes for innovation and economy, infrastructure, society and environment, and political system and government.

Chiapas was the state that ranked last in infrastructure, labor market, and society and environment.

Baja California Sur topped the labor market sub-index; Coahuila led the law sub-index, while Colima was last. Guerrero ranked last in innovation and economy; while Michoacán received the lowest rating for political system and government.

Comment and follow us on X:  @miroslavacs / @GrupoT21

El cargo IMCO proposes investing in infrastructure to improve Mexico’s logistics sector. apareció primero en T21.

“We’re seeing temporary situations like Stellantis plants shutting down, and we’ll continue to see that. It ultimately impacts all of our pockets, so it’s necessary to organize the people who benefit from trade, raise awareness, and make them understand that employment in their sector and community depends on this activity in Mexico. We also need to demand that the government continue to diversify and present the country as open to the international economy,” said Kenneth Smith, former chief negotiator of the USMCA and partner at AGON .

He considered that Mexico faces a serious problem in resolving the tariff “storm” and how to address the treaty revision in 2026, which is expected to be more of a renegotiation.

“In fact, Trump is already negotiating, meaning he’s establishing tariffs, moving the goalposts and setting unacceptable conditions, even for me, but I feel I can hold out longer, in this case, with Mexico and Canada, otherwise it’s going to hurt them more,” he explained.

He stated that these actions violate the USMCA, with respect to the automotive and auto parts sector , with “a particularly toxic clause,” since the treaty does not allow them to be implemented; there are only parallel letters that exclude these industries from any national

“There are other parallel letters in which any national security measure taken by the United States in any sector, Mexico and Canada have preferential treatment over any other country in the world. This consists of the fact that, if a Section 232 national security measure is imposed by the United States, they have 60 days to negotiate a solution, while for the rest of the world, these measures would take effect immediately,” he explained.

He asserted that in the automotive, steel, and aluminum sectors, “there are direct violations of the treaty. In this sector, it was established that if the United States at any time increases the most-favored-nation tariff on light vehicles, which was 2.5% before Trump’s arrival and is now 25%, it must respect the quota of 2.6 million vehicles and up to $108 billion worth of auto parts with the 2.5%.”

“You have a clear violation with the tariffs. The moment is critical to continue working to eliminate them. This supposed exclusion of reciprocal tariffs is not based on an agreement, a free trade agreement, or a document that allows for enforcement. It depends on which side of the bed Donald Trump woke up on,” he said.

During the webinar Deciphering the Challenges, Tariffs: A New Era for International Trade, organized by the Mexican Institute for Competitiveness (IMCO) , he stated that as a region, North America must contain unfair practices not only from China , but also from Brazil, India and other regions, through a comprehensive and joint strategy among the three countries.

But, equally, we must also build competitive capacity, eliminate barriers and transaction costs between Mexico, Canada, and the United States. “There are barriers at the borders, phytosanitary, services, non-tariff barriers of all kinds, and uneven regulation. All these chapters of the treaties must be addressed to fully integrate them into the North American economy.”

For her part, Valeria Moy, director general of IMCO, stated that Mexico has not done the long-overdue work to boost its economy, in areas such as energy, the electricity market, and public infrastructure.

“Mexico is late in reviving the technical capacity, education, and real capabilities to adapt to a more competitive market, and the rule of law has been forgotten or overtaken by reality,” he said.

He considered that the Mexico Plan, proposed by the federal government, may gain importance in relative terms; however, if decisions are not made on the aforementioned issues, “it won’t matter.”

Comment and follow us on X: @evandeltoro / @GrupoT21

El cargo Trump’s tariffs will impact end consumers: Kenneth Smith apareció primero en T21.

The transfer of 29 drug traffickers to the United States on February 27 is a sign that the Mexican government remains firm in its commitment to secure the northern border and reduce drug trafficking, which was one of the agreements reached by both countries to stop for one month the 25% tariffs proposed by US President Donald Trump , and that if materialized, one of the first effects would be the depreciation of the peso .

This was the opinion of Jesús Carrillo , director of Economics at the Mexican Institute for Competitiveness (IMCO) , who indicated that these tariffs are being negotiated in conjunction with a multiple agenda on security and immigration.

On February 27, the Attorney General’s Office (FGR) and the Secretariat of Public Safety and Citizen Protection (SSPC) reported that 29 people who were being held in various penitentiary centers in Mexico were transferred to the United States and were wanted by the government of our northern neighbor for their links to criminal organizations for drug trafficking and other crimes. Among those transferred was Rafael Caro Quintero.

It is worth remembering that one of the commitments that Mexico assumed, which led to the suspension of the 25% tariffs on various Mexican products on February 3, was to send 10,000 members of the National Guard to the northern border in order to stop illegal migration and drug trafficking to the United States.

On reciprocal tariffs , the specialist explained that what Trump is saying is that he is going to take imbalances in terms of the Value Added Tax (VAT) as if it were a tariff and impose it in retaliation, “or that if other countries impose retaliatory measures then he is going to raise them more. I think what he simply means is that this is a tariff war.”

In this regard, Jesús Carrillo pointed out that the US president is threatening to use more force in terms of trade, which is why his response to other governments in the world always carries a charge of aggression.

If implemented, the impact of the tariffs scheduled for March 4 would be significant, since in 2024 alone, Mexico exported more than 600 billion dollars (mdd) to the entire world and 80% of that total went to the United States.

“We are talking about almost 500 billion dollars, for sure. So, first of all, the first thing that will happen is that the currency will depreciate, and if the currency depreciates, everything we import will be more expensive, so it can hit inflation,” he stressed.

Another implication is that economic activity will slow down because “products on that side of the border will also become more expensive and therefore consumers will demand less. If they demand less, then we have to produce less and it is a vicious circle,” he said in an interview with T21 .

Tariffs on steel and aluminum

Carrillo pointed out that the 25% tariffs on steel and aluminum imports by the United States include a long list of diverse products such as automotive parts, appliance parts, air conditioners, among others, particularly aluminum.

The tariff rate is expected to come into effect on March 12, after Donald Trump signed executive orders on this measure on February 10.

The specialist said that the impact could be greater, particularly for critical industries such as the automotive industry, which would affect at least 11 states in Mexico, including Coahuila, Querétaro and Nuevo León.

According to the  National Institute of Statistics and Geography (Inegi) , the export of light vehicles manufactured in Mexico during January 2025 reached 219,414 units , and the United States  was the main destination for exports with  83.6% (183,321 units) , followed by Canada  with  21,707  cars.

According to IMCO, the imposition of tariffs on the products covered would impact 4.7% of total Mexican exports.

Jesús Carrillo said that there would also be impacts in the service and trade sectors, as well as consumption, entertainment, and “everything associated with employment in industries.”

Review of the USMCA

The imposition of tariffs violates Chapter 2 of the United States-Mexico-Canada Agreement (USMCA) , regarding national treatment and market access. One year after its review, Carrillo said, “it seems that everything will be brought forward.”

“Things are moving faster, but also, let’s say, outside of what is happening in the T-MEC. That is to say, this is already an ongoing dialogue, so I think this is a total impact,” he explained.

He pointed out that the tariffs affect the functioning of the trilateral trade agreement “and affect what will happen formally in 2026, or even if that is brought forward by decision of the parties, because everything also affects the T-MEC.”

According to the  Ministry of Economy , the T-MEC is the best business that the region has had, since, among other figures, it employs  17 million people at the regional level , generates approximately  3.1 million dollars (mdd) per minute  and represents  30% of the world GDP .

Regarding possible pressure from the US government for Mexico to impose tariffs on China, he said that the country must be clear that the United States is its main trading partner and that Mexico is part of the North American economic bloc .

“If in order to have that membership, we have to make some, I don’t mean concessions, but some actions to strengthen that bloc, I think Mexico should do it. I’m not saying all the tariffs that the United States suggests, or none at all, but simply seeing what tariffs or actions against China can be taken to strengthen our position in North America,” he concluded.

Comment and follow us on X: @Eliseosfield / @GrupoT21

El cargo Mexico’s security actions signal commitment to halt tariffs: IMCO apareció primero en T21.

The Mexican Institute for Competitiveness (IMCO) warned on Tuesday about the effects that would be caused by the disappearance of autonomous bodies, in the context of the fact that this week the reform that seeks to eliminate seven bodies and transfer their functions to other agencies will be discussed and, if necessary, approved.

In a statement, the IMCO warned that the implications of the possible elimination of the Federal Economic Competition Commission (Cofece) and that its functions be transferred to the Ministry of Economy , as well as the eventual elimination of the Federal Telecommunications Institute (IFT) and that its functions go to the Ministry of Infrastructure, Communications and Transportation (SICT) , is that there is a risk that competition decisions , when originating from the Executive Branch , lack the necessary impartiality that their nature demands .

“This may erode the investment climate and companies’ certainty about the existence of bodies that issue rulings based on technique and not on particular interests. In addition, the elimination of the bodies may result in Mexico’s non-compliance with its trade obligations, since Chapter 18 of the Agreement between Mexico, the United States and Canada (T-MEC) requires the existence of a telecommunications regulatory body that is independent and impartial,” said IMCO.

He also indicated that the possible elimination of the Energy Regulatory Commission (CRE) and that its functions be transferred to the Ministry of Energy (Sener) , as well as the probable disappearance of the National Hydrocarbons Commission (CNH) and that its functions be assumed by Sener , would bring the risk that the Executive Branch be “judge and party” in decisions on permits and rates in energy markets to benefit State actors .

“In addition, Chapter 22 of the USMCA includes a provision on the need to ensure that state-owned enterprise regulatory bodies – in this case Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE) – exercise their regulatory obligations impartially.

In the event of the elimination of the National Institute for Transparency, Access to Information and Protection of Personal Data (INAI) and the transparency guarantee bodies, it would affect the accountability capacity of the government and its officials .

“Transparency in the exercise of public functions is a key element to achieve the commitments of the USMCA on anti-corruption, included in Chapter 27. In addition, it would impact the participation of civil society, given the limitation to make requests and the lack of a guarantor body,” the organization indicated.

Regarding the possible disappearance of the National Council for the Evaluation of Social Development Policy (Coneval) and the transfer of its functions to the National Institute of Geography and Statistics (Inegi) , the IMCO noted that without a rigorous evaluation of social programs, the constitutional principles of efficiency could be affected .

Regarding the possible disappearance of the National Commission for the Continuous Improvement of Education (Mejoredu) and the transfer of its tasks to the Secretariat of Public Education (SEP) , the organization stated that it will imply difficulties in identifying infrastructure needs , the state of learning in the country , among other indicators that are key to drawing up an actionable plan in long-term educational policy.

In light of this, the IMCO proposed guaranteeing the technical, operational and management autonomy of the decentralized or decentralised bodies or administrative units, establishing in detail the type of autonomy of each one in the subsequent modification of the corresponding laws.

He also proposed establishing a legislative control mechanism that requires the appearance of the heads of the units or institutions that absorb the functions, in order to monitor the progress of the administrative change and an evaluation of the performance of their functions to ensure the independence of their decisions.

Among other points, he proposed maintaining the perspective of collegial decision-making , which is currently done through government bodies, in order to avoid the concentration of interests. In addition, including within the Commission for Monitoring the Implementation and Review of the T-MEC in the Senate of the Republic a team in charge of monitoring possible breaches of the trade agreement.

Comment and follow us on X:@GrupoT21

El cargo IMCO Warns of Risks to Competitiveness if Autonomous Agencies Are Abolished apareció primero en T21.

The constitutional reform to the Judiciary published in September 2024 in the Official Gazette of the Federation (DOF) raises concerns about its impact on judicial independence and possible conflicts with the Treaty between Mexico, the United States and Canada (T-MEC) , according to a statement from the Mexican Institute for Competitiveness (IMCO) , measures that could compromise the impartiality required by the T-MEC.

In this regard, the reform that establishes, among other aspects, the popular election of judges and magistrates poses risks of partisanship, according to IMCO, and there are fears that judicial processes will become more susceptible to political influences.

Furthermore, the intervention of political parties and interest groups could increase “impunity and reduce the professionalization of the judicial system ,” which directly affects the country’s ability to guarantee a solid rule of law, as established by the IMCO analysis.

In the context of the USMCA , this change raises alarms in the United States and Canada, which see the impartiality required by the treaty to guarantee fair and equitable treatment to foreign investors compromised.

According to IMCO, 83% of Mexico’s exports go to the United States, and 44% of foreign direct investment comes from there . Reforms that affect competitiveness or transparency could put this key relationship at risk and generate uncertainty for the Mexican economy and its trade ties with North America.

For IMCO, one of the most controversial proposals within the reforms is the extinction of seven autonomous organizations, such as the Federal Telecommunications Institute (IFT) , the Federal Economic Competition Commission (Cofece) and the Energy Regulatory Commission (CRE) . These organizations would be absorbed by executive agencies, which would further concentrate power in the public administration.

The elimination of these bodies also has domestic implications, such as reduced accountability and transparency, and also creates potential conflicts with the USMCA . This agreement requires the existence of independent regulatory bodies in key sectors such as telecommunications, competition and energy, which puts Mexico at risk of not complying with the provisions agreed with its main trading partners.

Additionally, in its analysis, IMCO details that the proposed reforms in the areas of energy and water also generate tensions. The energy reform, which proposes limiting private participation in key sectors such as electricity transmission and distribution, violates the principles of the USMCA that prohibit the rollback of trade openness and foreign investment.

Thus, reforms to water and mining concessions increase uncertainty by restricting investment in strategic sectors.

On the other hand, IMCO also highlights the ban on the use of genetically modified corn, which affects both planting and human consumption, causing a trade conflict with the United States, as it is not based on scientific evidence. This disagreement is currently in a dispute resolution process under the rules of the T-MEC.

Comment and follow us on X: @GrupoT21

El cargo Constitutional Reforms Could Jeopardize Mexico’s Economic Stability: IMCO apareció primero en T21.

Nearshoring ( the relocation of production lines to consumption centers) in Mexico is generating economic growth by attracting investments and creating new jobs. However, this industrial phenomenon presents significant labor challenges , especially in managing well-being and training talent, which could compromise long-term benefits if not addressed properly.

In that regard, Lina Vanegas, Betterfly ‘s marketing leader in Mexico, commented that the rise of nearshoring contributes substantially to the country’s economy, contributing 15% in 2023, according to the National Institute of Statistics and Geography (Inegi) . However, this rapid expansion imposes considerable pressures on the workforce, highlighting the need for a more comprehensive strategy that encompasses employee training and well-being.

In this regard, a recent study by the International Labour Organization (ILO) revealed that 60% of employees in the nearshoring sector experience high levels of stress due to constant demand and long working hours , while the Mexican Association for Safety and Hygiene at Work (AMHS) reported a 25% increase in musculoskeletal problems among those who work in these companies, caused by a sedentary lifestyle and poor posture.

According to Vanegas, in terms of employee well-being, companies face the challenge of managing a workforce that, in many cases, is subject to high levels of stress.

“Sixty percent of employees in sectors such as logistics, operations and manufacturing experience excessively high levels of stress, which directly impacts their productivity,” said Vanegas.

She also said that this situation allows for an increase in the implementation of welfare programs that seek to mitigate the negative effects of these working conditions.

“Leading companies in the sector have implemented psychological support and mindfulness programs that, according to the International Stress Management Association (ISMA), have been shown to reduce work-related stress by 30%,” said Vanegas.

In addition to mental health, physical health has also become a focus. A study by the National Autonomous University of Mexico (UNAM) shows that employees who participate in exercise programs report a 20% decrease in physical health problems.

In this context, companies have begun to incorporate active breaks and offer gym memberships as effective strategies to improve the health of their employees, as explained by Lina Vanegas.

Furthermore, rapid technological evolution requires constant updating of skills. A Deloitte report indicates that 70% of employees in the nearshoring sector feel the pressure of keeping up with new technologies, which can lead to mental fatigue and burnout .

On this topic, Vanegas explained that Betterfly, for example, offers its users access to online training platforms, allowing them to acquire new skills at no additional cost, which contributes to maintaining a competitive and well-prepared workforce.

For its part, the Mexican Foundation for Innovation and Technology Transfer (FMITT) reported a 40% increase in the productivity of employees who participate in continuous training programs.

However, the lack of alignment between educational provision and labour market demands remains a challenge. Mexico ranks last among OECD countries in terms of the percentage of young people enrolled in higher education, and career choices have not changed significantly over the past decade.

To address this challenge, the Mexican Institute for Competitiveness (IMCO) proposes developing strategies to promote higher education and improve the connection between the educational offer and the demand for talent in the private sector.

Nearshoring thus offers Mexico a unique window of opportunity to strengthen its economy, but to make the most of it, it is crucial that the country addresses the challenges of talent development and workplace well-being.

For the Betterfly specialist, companies must invest in wellness and training programs to ensure a healthy workforce prepared for the challenges of the future.

“The comprehensive well-being of employees is not only a corporate responsibility, but a strategic investment that is reflected in the productivity and commitment of the team,” explained Vanegas.

To foster dialogue on the opportunities presented by nearshoring, Grupo T21 will organize the Transportation and Logistics Meeting (ETYL) on October 9 and 10 in Nuevo León. With the central theme “Maximizing logistics opportunities with nearshoring ,” this event will bring together important industry leaders in Mexico.

Comment and follow us on X: @karinaquintero / @GrupoT21

El cargo Nearshoring: The Industrial Phenomenon Facing Critical Labor Challenges apareció primero en T21.