Mexico’s President Claudia Sheinbaum recently announced the launch of a 30 billion peso ($1.4 billion) nearshoring incentive package aimed at strengthening the country’s position in regional supply chains. This initiative, outlined in an executive decree, is part of a larger economic strategy called Plan México. The majority of the funds, totaling 28.5 billion pesos, will be allocated to companies investing in new fixed assets within Mexico, while the remaining 1.5 billion pesos will be designated for training and innovation incentives. A federal committee will oversee the distribution of these funds based on guidelines that will be published in the coming months, with the funds available until September 30, 2030.
President Sheinbaum emphasized the importance of increasing Mexico’s role in manufacturing inputs for North America’s supply chains, with the goal of boosting the national economy, promoting regional integration, creating jobs, and enhancing overall wellbeing. By producing more goods domestically and reducing reliance on imports, Mexico aims to strengthen its economy and contribute to growth across the continent.
The nearshoring package is a key component of Mexico’s long-term economic goals under Plan México, which focuses on promoting nearshoring and regional integration. Mexican officials have highlighted the potential benefits of replacing a portion of North America’s imports from China with regionally-produced goods, projecting significant GDP growth for Mexico, the United States, and Canada. By incentivizing investments in various sectors and encouraging companies of all sizes to participate, the government aims to foster greater integration into regional supply chains.
This incentive package represents a departure from previous approaches, as it sets aside a specific amount of funding and welcomes both foreign and domestic companies from any sector to participate. This inclusive approach aims to drive greater participation from domestic companies and encourage them to align with the program’s objectives. By broadening the scope of eligible companies and industries, the government hopes to catalyze greater integration and collaboration within regional supply chains.
In comparison to previous initiatives, such as the program launched by former President Andrés Manuel López Obrador, President Sheinbaum’s incentive package takes a more targeted and specific approach. Rather than offering indefinite subsidies to select industries, this program provides a set amount of funding and opens opportunities to companies across various sectors. This approach reflects a strategic shift towards promoting broader participation and fostering a more diverse range of investments in alignment with the country’s economic objectives.
As part of the broader economic strategy outlined in Plan México, the nearshoring incentive package is designed to bolster Mexico’s position in regional supply chains, attract investments, and drive economic growth. By offering incentives to companies investing in new fixed assets and promoting innovation and training, the government aims to create a more competitive and resilient economy that can thrive in the evolving global marketplace.
President Sheinbaum’s nearshoring incentive package represents a proactive step towards enhancing Mexico’s economic competitiveness and strengthening its role in regional supply chains. By aligning with the goals of Plan México and promoting greater integration into North America’s supply chains, the government aims to position Mexico as a key player in the global economy and drive sustainable growth for the country and the region as a whole.
