The roadmap aims to attract $270 billion in private investment, consolidate 15 Economic Development Hubs for Well-being, and generate 300,000 jobs during the six-year term.

Through this strategy, the government also seeks to transform Mexico into the world’s tenth largest economy , with a strengthened industry, employment, and reduced inequality.

One of the pillars of Plan Mexico is the Economic Development Hubs for Well-being, conceived as regional engines of growth. These hubs prioritize investment in strategic sectors such as agribusiness, automotive and electromobility, aerospace, pharmaceuticals, medical devices, chemicals, textiles and footwear, energy, the circular economy, and electronics .

According to the Report, 14 visits were made to federal entities in April and May 2025 to evaluate the feasibility of 24 initial proposals.

Following the inter-institutional review, 14 hubs with the greatest productive and territorial potential were selected on May 22, and the decree on tax incentives and the guidelines establishing the technical and fiscal criteria for their operation were published in the Official Gazette of the Federation (DOF) .

Legal instruments are currently being drafted to formalize the administration and coordination of the hubs, along with state governments and federal agencies.

The strategy also seeks to modernize business technology systems to streamline business formation.

In parallel, intellectual property enforcement was strengthened with 2,548 inspections , the seizure of more than one million pirated products, and the implementation of the “Operation Cleanup” strategy , with seizures equivalent to 885 million pesos (mdp) in illegal merchandise in Mexico City, the State of Mexico, Hidalgo, Nuevo León, Puebla, and the country’s northern border states.

Strengthening supply chains

On the other hand, the Mexican government has prioritized increasing domestic content in exports and local production . Between October 2024 and June 2025, diagnostics were conducted in sectors such as auto parts and semiconductors to identify constraints and propose industrial policy reforms.

Temporary tariffs were also applied to protect the textile industry and import restrictions were imposed under the IMMEX (Manufacturing, Maquiladora and Export Service Industry) program , canceling permits for companies that simulated exports worth 24 billion pesos.

In the automotive sector , Mexico expanded its exports to Argentina, reaching $773 million in the second quarter of 2025, more than double the previous year.

Likewise, micro, small, and medium-sized enterprises (MSMEs) have been a central part of Plan Mexico. Between October 2024 and June 2025, 540.516 billion pesos in financing was provided to 365,256 companies, and 38,071 training courses in business management and operational efficiency were provided.

The Mujer Exporta MX program connected 51 women-owned businesses with international buyers from Germany, Canada, and the United States, promoting inclusion in sectors such as agri-food and textiles.

Infrastructure and international cooperation

To improve productive connectivity, the government highlighted that 4.505 billion pesos were financed for roads and highways , in addition to 14.418 billion pesos for urban transportation such as lines 4, 5, and 6 of the Monterrey metro and Line 4 of the Guadalajara light rail.

In terms of cooperation, Mexico and Germany strengthened the Partnering in Business with Germany program, focused on the automotive and aerospace sectors, with 20 Mexican companies selected by 2025.

The Portfolio for Shared Prosperity recorded, as of June 2025, a total of 1,661 private investment projects totaling US$270,449 million, of which 372 faced 1,061 delayed procedures.

To date, according to the Mexican government, 170 have been resolved to streamline the investment environment.

Likewise, growth in the industrial warehouse sector reached 14.5% compared to 2023, with 72 new projects in the first half of 2025, mainly on the northern border and the Bajío automotive corridor, driven by the nearshoring phenomenon.

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In a context of global supply chain transformation, Mexico has found import substitution and nearshoring (relocation of production lines)  to be a key strategy for strengthening its industry, reducing dependence on foreign inputs, and leveraging its strategic geographic location.

During the conference Foreign Trade and the Importance of Import Substitution of the Logistics and Customs Committee of the Mexican Business Council of Foreign Trade, Investment and Technology (Comce) , Eduardo Castorena Román, partner in Foreign Trade and Customs at Deloitte , explained how this model seeks to boost national production through nearshoring and attract new investments to the country.

“The goal is clear: to create a more competitive environment for manufacturing in Mexico, encourage investment in strategic sectors, and take advantage of the incentives offered by the trade agreement with the United States and Canada ( USMCA ),” Castorena said.

Import substitution is not a new concept in Mexico, as the country implemented a similar policy to boost its industrialization in the mid-20th century, based on high tariffs and import restrictions.

However, the current model is different because it is not based on protectionism, but rather on incentives to attract investment and promote local production of strategic inputs.

“Previously, tariff barriers were used to force companies to consume domestic inputs. Today, the approach is different; it’s about creating conditions that make local production more attractive. We’re not closing markets, but rather integrating more efficiently into global supply chains,” the specialist explained.

One of the main drivers of this strategy is nearshoring , that is, the relocation of suppliers to regions closer to the end market.

Castorena noted that this trend has accelerated due to trade conflicts between the United States and China , as well as supply chain issues caused by the pandemic.

“This will strengthen bilateral relations with the United States and allow for the development of more efficient production chains. It will also boost productivity, investment in research and development, and increase exports by up to $50 billion. It is also estimated to generate more than 1.1 million jobs and boost wages and manufacturing output,” he stated.

Castorena explained that this process is not based solely on imposing tariffs on foreign products, but on encouraging investment in the country through programs such as IMMEX , which facilitates the temporary importation of inputs without paying taxes, and VAT certification , which allows for the refund of this tax to exporting companies.

Mexico, he noted, is one of the most competitive countries in Latin America for this type of investment, thanks to its trade agreements, infrastructure, and proximity to the United States.

Among the main benefits of this scheme are the reduction of production costs , greater control over the economy and quality of products , development of production and marketing closer to customers , optimization of logistics and reduction of delivery times ; as well as tax and commercial incentives.

Despite its advantages, the import substitution model faces several challenges, including the need to develop specialized suppliers in Mexico and comply with the USMCA ‘s rules of origin .

“If a company imports most of its inputs from another country, its products will not qualify as originating under the trade agreement and could face tariffs of 25%. The challenge is to ensure that manufacturing and strategic suppliers establish themselves in Mexico, allowing the entire value chain to be integrated in the country,” Castorena explained.

Another important challenge is the specialization of domestic suppliers. Sectors like semiconductors require highly advanced technology, and developing suppliers in Mexico can take years.

“Specialization is key. If an automotive company comes to Mexico and needs specific inputs, but they aren’t available in the country, it will have to continue importing them. The ideal is to attract both end manufacturers and their suppliers, so that the entire production chain is integrated in Mexico,” he explained.

He also mentioned that regulatory barriers can be an obstacle for some companies seeking to establish themselves in the country, but emphasized that the government is making efforts to simplify procedures and improve the business environment.

Tensions in the trade relationship and its economic impact

Additional tariffs imposed by the United States on products from countries such as China, the European Union, and some BRICS members have affected various industries.

Castorena noted that these types of measures, along with the migration crisis and the fight against drug cartels, are used as justification for imposing trade sanctions , although their impact on job creation and the economy has not been clear.

“The implementation of these sanctions hasn’t necessarily yielded the expected results in terms of job creation, particularly among the Latino population in the United States. However, what we’re seeing is that relocating companies is being seen as a more viable alternative to avoid these tariff risks, and that’s directly benefiting countries like Mexico,” he explained.

Despite these challenges, experts agree that Mexico has strategic advantages that position it as a key destination for business relocation.

“The United States wants to reduce its dependence on China, and Mexico is the natural partner for this. The challenge is to seize this opportunity with policies that encourage investment, innovation, and technological development,” Castorena said.

In the coming years, more companies are expected to choose to move their production to Mexico , consolidating the country as a key player in the new configuration of global supply chains.

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This weekend senior officials of the Government of Mexico confirmed that the country will work to seek less trade dependence on China .

Rogelio Ramírez de la O, current Secretary of Finance and Public Credit (SHCP) , indicated that the region of the Treaty between Mexico, the United States and Canada (T-MEC) shows a high dependence on Chinese imports.

In this case, the United States depends on China for 16.5% of its imports, Canada for 13.5% and Mexico for 19.6% , according to data shared by the head of the Mexican Treasury, during the event Economic balance on industrial development and T -MEC , held in San Luis Potosí, before the President of the Republic, Andrés Manuel López Obrador, and the virtual president-elect, Claudia Sheinbaum.

Right there, Ramírez de la O, who will have six-year continuity during the Sheinbaum government, indicated that Mexico is considering making a change in the investment policy and attention to foreign investment, through the so-called Mexico Plan, in the sense to encourage greater production in the North American region to meet consumer demand.

The Secretary of the Treasury stated that “ we are depending too much on basic products from China for our homes.”

Currently, the value of Chinese exports to Mexico is around 119 billion dollars (million dollars) per year , while Mexican exports to China are barely around 11 billion dollars, which represents a large trade deficit for Mexico, according to with official data.

Ramírez de la O indicated that today the advantages of producing in China have already disappeared, maritime freight rates from Asia to North America “have exploded upwards” and currently there is a new chapter of containers that are stuck in the supply chain, containing products that the country needs and does not produce, such as semiconductors.

“If we produce more in Mexico, this production requires an increase in employment of 520 thousand more people for our country and 600 thousand more people in the United States. We have this incentive to produce more and have greater value and higher wages in this region of North America,” said the Secretary of the Treasury, quoted in a press release from the federal agency.

At the beginning of July, the president of the United States, Joe Biden, and Andrés Manuel López Obrador agreed on a series of measures to confront the “unfair import” of steel and aluminum from countries that seek to triangulate these products in Mexico to reach the United States. avoiding tariffs, a measure aimed mainly at retaining imports from China.

The member countries of the T-MEC are preparing for a review in 2026 of the region’s trade agreement , where it is expected that there will be greater surveillance of imports and an incentive for companies located in other regions of the world to migrate their centers of production to North America.

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