1. “Plan Mexico” announced
The Mexican government unveiled a plan on Monday aimed at consolidating the country's regional leadership in economic development, social equity and other areas, and striving to become one of the world's top ten economies within six years.
Mexican President Claudia Sheinbaum revealed that this development plan, called the "Plan Mexico", aims to attract a total of US$277 billion in domestic and foreign investment. These investments will cover more than 2,000 specific projects, including textiles, automotive, pharmaceuticals, aerospace, agribusiness and electric vehicles among other key sectors.
Sheinbaum said that according to World Bank data, Mexico is currently the 12th largest economy in the world, and the Mexican government aims to be among the top 10 economies in the world by 2030. Mexico will attract investment by promoting local manufacturing, replacing imported products, creating manufacturing jobs and reducing government approvals, she said.
2. Improve local supply chain
According to reports, the Sheinbaum administration will strengthen local procurement in the key textile and automotive industries and will also cooperate with Mexican steel producers; the Mexican steel industry has long accused Chinese products of depressing market prices.
“Our goal is for every state in Mexico to have a clear goal of promoting regional development and creating good-paying jobs,” Sheinbaum said.
Among the most important goals are to make Mexico the world's tenth largest economy by 2030, increase public and private investment to 27% of GDP, and shorten the approval time for investment projects from 2.6 years to one year.
In terms of social welfare, the Mexican federal government is committed to working with Mexico's strategic sectors to reduce poverty and inequality in the country by raising the minimum wage, adding 1.5 million jobs, and promoting secondary and higher education.
It is worth noting that the Mexican government also announced an action plan for 2025, including announcing company relocation incentives, launching a small and medium-sized enterprise fund, and building 10 new industrial parks.
3. Respond to Trump’s threats
The British "Financial Times" commented that the purpose of the plan is to reduce the huge trade deficit with China and attract investment, and to show goodwill to the Trump administration. In 2023, the trade deficit between Mexico and China increased to US$105 billion.
The plan comes as Mexico tries to push back on claims it allows Chinese goods to pass through the country into the United States, and as Sheinbaum attempts to ease tensions with Trump.
Trump last year threatened to impose 25% tariffs on exports from Mexico and Canada, which he accused of allowing illegal immigration and drug smuggling across the border.
Currently, Mexico and Canada are working hard to align their trade rules with the United States and are trying to restrict Chinese imports and investments to maintain the United States-Mexico-Canada Agreement (USMCA), which is the cornerstone of the North American Free Trade System.
"This has proven to be one of the best trade deals in history, and it has benefited the U.S., Mexico and Canada tremendously; it's the only way we can compete with Asian countries, especially with China," Sheinbaum told business leaders at an event held at the National Museum of Anthropology in Mexico.
