📝Mexico Nearshoring Will Continue to Be An Opportunity: BBVA

The opportunity for nearshoring in Mexico is still alive and may even strengthen. Despite the threat of tariffs from the current US government, trade conditions continue to favor Mexico. It is still more profitable to produce in Mexico and export to the US from this country than from other countries, especially from China, where everyone would pay a tariff of 25% or even more. In addition, the new Mexican government is more open to private investment. In this sense, the current energy secretary has commented that once the CFE has a 54% market share, the government will more efficiently authorize private investment in the sector, mainly in sustainable energy. In addition, the Mexico Plan establishes that the federal government will grant tax incentives to FDI and investment in human capital in all sectors of the economy. One point to consider is that the "America First" Trade Policy will evaluate whether any country subsidizes exports to the US in any way to take action to prevent potential damage. - BBVA