Mexico's new government is mulling granting tax credits to foreign companies to invest and produce in the country, mainly for investment in the electric vehicle (EV) sector, semiconductors, rare earth minerals, batteries and electronics, an official told Reuters news agency.
"We are seriously analyzing creating tax credit incentive programs very similar to those in the United States and Canada ... and we believe that would allow us to attract many companies to Mexico," deputy Foreign Trade Minister Luis Rosendo Gutierrez told Reuters.
Gutierrez said the incentives would apply to companies from any country interested in investing in Mexico, including China. Mexico would not be a "springboard" for China to enter the United States.
According to a document from the Ministry of Economy, Mexico has already begun working with companies such as General Motors and Stellantis, the first and fourth largest vehicle producers in the country. In addition, the company has worked with Taiwanese electronics manufacturer Foxconn, chip manufacturer Intel, and logistics firm DHL to identify products that can be manufactured in Mexico rather than imported from Asia.
The new Mexican government began on October 1 with President Claudia Sheinbaum. The incentives being considered are totally contrary to the previous government (2018-2024) that did not provide support to companies, even with the SARS-CoV-2 pandemic.