A new U.S. tax incentive package known as the “Big Beautiful Bill,” recently approved by the U.S. House of Representatives, is unlikely to negatively impact Mexico’s nearshoring prospects according to Mexican officials.
Economy Minister Marcelo Ebrard addressed concerns during President Claudia Sheinbaum’s Thursday morning press conference, explaining that despite the U.S. tax incentives, Mexico maintains significant competitive advantages for international investors.
Mexico’s Competitive Advantages
Ebrard highlighted that Mexico’s key strengths include productivity, geographical proximity to U.S. markets, and logistical advantages that continue to make it an attractive manufacturing destination.
The minister pointed to emerging U.S. trade agreements with countries like Vietnam as potentially beneficial for Mexico. He claimed Mexico will enjoy a “6-to-1 advantage” over Vietnam in terms of tariff rates when exporting to the U.S. market. While Vietnamese exports could face tariffs between 35-40%, Mexican goods would only face around 6% on average, thanks to the USMCA trade agreement.
Additional Conference Highlights
During the same press conference, President Sheinbaum addressed the case of Sinaloa Cartel leader Ovidio Guzmán López, who reportedly plans to plead guilty to drug trafficking charges in the United States next week. She criticized the apparent inconsistency in U.S. policy, which recently designated Mexican cartels as terrorist organizations while simultaneously negotiating plea deals with cartel leaders.
The administration emphasized that any developments in the U.S. fiscal policy are unlikely to diminish Mexico’s competitive position in attracting international manufacturing investment.
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