States will have to develop a work plan to trigger nearshoring: SE

The country’s 32 entities and their Economic Development secretariats will have to draw up a work plan for the next two years that takes advantage of nearshoring.

After a meeting between the federal Secretary of Economy (SE), Raquel Buenrostro Sánchez, with those in charge of state economic policies, it was agreed that the subnationals have two years to carry out the project; In addition, initially they must prepare a diagnosis of productive vocation, in order to see the opportunities they have before foreign companies that seek to relocate their plants.

Based on the diagnoses, it is intended that the states share joint strategies to take advantage of the relocation of industries, where the participation of Asian companies stands out.

The meeting also called for simplifying investment procedures in the states and for them to be standardized at the national level, in addition to the SE facilitating and monitoring investment projects through a single window.

Buenrostro Sánchez explained that there are five industrial sectors that will be boosted by relocation: semiconductors, automotive (electromobility), electrical and electronics, medical and pharmaceutical devices, and agribusiness.

“Mexico is at the best moment, due to its geopolitical position, which allows it to generate poles of development in the different regions of the country,” said the secretary.

The Foreign Trade Undersecretary will be responsible for coordination with the country’s Economic Development Secretariats.

Strategies

The proposed project occurs in a context where different entities have made their strategies and public policies known.

Among them, Querétaro stands out, which at the beginning of this year announced that its economic policy will be based on taking advantage of the relocation of suppliers and attracting investments.

For this reason, the Queretaro entity contemplates a portfolio of 60 investment projects for 95,000 million pesos, which would generate 27,000 new jobs.

While Jalisco prepares an infrastructure project for the supply of electricity, seeking the participation of international private funds.

In addition, the industrial corridor of El Salto plans to attract investments of 500 million dollars this year, 25% more than in 2022.

Meanwhile, Michoacán develops greater infrastructure at the Port of Lázaro Cárdenas, where the conditioning of the island of La Palma as an industrial zone stands out. Work is also being done on the Bajío Uno industrial park in Morelia, as well as on the land reserve for the Quréndaro station on the Occidente highway, adjacent to the Morelia International Airport.

The project of the Mexican Pacific Logistics Platform, presented in November 2021, was also aligned with nearshoring; This plan aims to create a cabotage docking point for Lázaro Cárdenas

While in Sonora the Sonora Sustainable Energy Plan was announced, which contemplates the creation of a binational center for the development of semiconductors, as well as a photovoltaic plant in Puerto Peñasco that aims to supply energy to the border between the United States and Mexico .

Guanajuato is also one of the entities that has sought to take advantage of nearshoring, precisely due to three factors, it modified its long-term industrial policy where it claims to be the most benefited state.

“The first factor is that the pandemic surprises us all, business models begin to adjust, second, with the conflict between Russia and Ukraine we see that companies begin to relocate and look for other places to settle, and the third is the war business that the United States and China have,” the head of the Guanajuato Sustainable Economic Development Secretariat, Ramón Alfaro Gómez, explained to El Economista.

The entity has focused on promoting its human talent, implementing trade missions and further simplifications and regulatory improvements for investments.

“Today we already have more than 5.4 billion dollars, we have taken advantage of this phenomenon of nearshoring, free trade agreements. Guanajuato is an attractive place for Chinese investments, from Taiwan, from Korea and from a very important partner over the years, which has been Japan”, he commented.

The economic engine

Mexico City is one of the last entities to announce its intention to go for nearshoring; Last week the local authorities reported that they are preparing two strategies based on generating tax incentives in Vallejo and supporting the establishment of corporations.

In this regard, the head of the Secretariat for Economic Development, Fadlala Akabani Hneide, explained that for the start of this year the Head of Government, Claudia Sheinbaum Pardo, requested the generation of a new project that takes advantage of the relocation of supply chains. (With information from Viviana Estrella and Patricia Romo).

estados@eleconomista.mx