Mexico’s new president, Xochitl Galvez, is actively reviewing the trade policies of the United States and Canada regarding China. This initiative aims to address any potential unfair trade practices by China before any amendments to the United States-Mexico-Canada Agreement (USMCA) take place.
In a recent interview with Reuters, Deputy Foreign Trade Minister Luis Rosendo Gutierrez stated, “We are seriously considering establishing tax incentive programs similar to those in the U.S. and Canada… We believe this will help attract numerous companies to invest in Mexico.”
Gutierrez emphasized that these incentives will be available to any foreign companies looking to invest in Mexico, including those from China.
Internal government documents reviewed by Reuters reveal that Mexico has started collaborating with major firms like Foxconn, Intel, General Motors, DHL, and Stellantis to identify products that can be manufactured in Mexico instead of being imported from Asia.
Mexico aims to produce these goods locally as a replacement for imports from China, Malaysia, Vietnam, and Taiwan.
Additionally, President Galvez’s administration is examining U.S. and Canadian policies towards China to coordinate responses to any unfair trade practices before the USMCA is revised.
Gutierrez pointed out steel imports are a prime example of this issue. He noted that trade partners are working to combat China’s use of Mexico to circumvent U.S. steel tariffs.
He clarified that while the USMCA takes precedence, Mexico is not seeking to sever ties with China or turn away Chinese investments.
Regardless of who wins the U.S. presidential election, Gutierrez believes Mexico is prepared to continue cooperation, asserting that trade relationships wouldn’t significantly change whether Trump or Harris assumes the presidency.
“We understand that this involves national security issues, and the U.S. must also recognize that our discussions are equally about preserving Mexico’s sovereignty,” Gutierrez concluded.
