Mexico is exploring the possibility of offering tax credits to entice foreign companies to invest in and manufacture products domestically, with a focus on electric vehicles, semiconductors, rare earth minerals, batteries, and electronics. Top Mexican trade official, Luis Rosendo, mentioned in an interview that creating tax credit incentives similar to those in the United States and Canada could attract numerous companies to Mexico.
The new government in Mexico is seeking to increase investment by aligning supply chains closer to their main markets while adapting to a more protectionist environment in the US ahead of presidential elections. Initiatives would be open to companies from any country, including China, interested in investing in Mexico.
Collaborations have already begun with companies like Foxconn, Intel, General Motors, DHL, and Stellantis to identify products that can be manufactured locally instead of being imported. This shift represents a change from previous policies towards Chinese carmakers, showing a more open approach to international collaboration.
The move signifies a step towards fostering a conducive environment for foreign investment, signaling potential growth and collaboration opportunities for Mexico’s manufacturing sector.