Mexico is considering offering tax credit incentives to attract foreign companies to invest and produce in the country, focusing on sectors like electric vehicles, semiconductors, rare earth minerals, batteries, and electronics, according to an interview with Luis Rosendo Gutierrez, Deputy Minister of Foreign Trade, as reported by Reuters.
The new Mexican government is currently evaluating ways to attract more investment, as companies seek to relocate supply chains closer to their main markets. This comes at a time when the United States is experiencing a turbulent and increasingly protectionist period on the eve of its presidential election.
"We are seriously considering offering tax credit incentives very similar to those in the United States and Canada," Gutierrez said. "We believe this will attract many foreign companies to invest in Mexico."
He noted that these tax credit incentives would apply to any company interested in investing in Mexico, including Chinese companies. However, Gutierrez emphasized that Mexico would not serve as a "springboard" for Chinese companies to enter the United States.
An internal government document seen by Reuters reveals that Mexico has begun working with several companies, including electronics manufacturer Foxconn, chipmaker Intel, U.S. automaker General Motors, logistics company DHL, and automaker Stellantis, to determine which products can be produced in Mexico instead of imported from Asia.
The document also indicates that Mexico is seeking to replace imports from China, Malaysia, and Vietnam. While Gutierrez declined to provide further details about the companies mentioned, the shift suggests that Mexico's stance toward Chinese automakers may have changed. In April of this year, Mexican officials had stated that due to pressure from the United States, Mexico would not provide local incentives, such as low-cost public land or tax cuts, to Chinese automakers.