The Mexican Institute of Finance Executives (IMEF) has emphasized the importance of Mexico being competitive and attractive in the tax realm, legal certainty, and security to achieve the country's growth, attract investments, and improve competitiveness internationally. According to IMEF, showcasing the country with competitive advantages compared to other nations in America and the world is key to boosting its economic potential.
"Nearshoring" has been a relevant topic in different sectors in Mexico, as it represented an opportunity to attract foreign investments and promote the relocation of existing businesses, as well as the creation of new ones, in areas with tax incentives. This would translate into job generation, economic development, and a redistribution of wealth at the national level.
Despite Mexico being attractive for national and international companies thanks to trade agreements such as NAFTA and USMCA, the opportunity to boost GDP growth, job generation, and tax collection has not been fully leveraged. Some decrees offering tax incentives in certain regions of the country have complicated requirements that hinder the establishment of companies, leading investors to consider other countries with more favorable tax treatment.
It is important to relax the requirements of the decrees with tax incentives to attract investments and prevent Mexico from falling behind in the "nearshoring" trend. Support from the business sector and the Government would be fundamental to create a specialized center for "nearshoring" in Mexico, taking advantage of its proximity to the United States and promoting the relocation of companies throughout the country with fiscal and economic benefits.
In the case of Mexicali, there is already a long-term project that promises to generate employment and business development. It is necessary to facilitate the relocation or opening of new businesses throughout the country by reducing bureaucratic burdens and providing benefits to encourage their establishment and operation more easily.
