Mexico Plans Nearshoring Incentives to Curb China Imports

Mexico’s President Claudia Sheinbaum announced January 13 a plan to reduce the country’s imports from China in a bid to support local industry and align herself with the U.S. and Canada as a trade partners.

Amid a shrinking share of North American exports to the world, Sheinbaum stated that Mexico would offer incentives for nearshoring, including tax deductions, and develop plans for individual sectors for how to increase the local content of goods made in Mexico.

The new decree on incentives for both Mexican and foreign firms will be published January 17. “What isn’t made here can be made here. The Plan Mexico was very clear,” Francisco Cervantes, president of the country’s business coordinating council CCE, said. “We have a trade agreement with the U.S. and Canada that the president said is very important, so as long as we sti…