President-elect Claudia Sheinbaum has announced the creation of a business advisory council for her presidency that will focus on regional development and Mexico’s nearshoring opportunity.
The Advisory Council for Regional Development and the Relocation of Companies will be headed up by businesswoman Altagracia Gómez Sierra and function as a link between the private sector and the incoming government led by Sheinbaum, who will take office on Oct. 1.
“It’s a council of businesspeople that Altagracia will coordinate and which will be in contact with” government ministers, Sheinbaum said Tuesday after meeting with foreign and Mexican financial industry executives at the annual meeting of the International Monetary Conference, which — for the first time ever — was held in Mexico City.
Sheinbaum said that incoming economy minister Marcelo Ebrard, current and future finance minister Rogelio RamÃrez de la O and soon-to-be energy minister Luz Elena González will be among the government officials that will collaborate with the advisory council.
Sheinbaum also said that the council will provide a forum for her to engage with Mexican businesspeople.
Gómez, chairwoman of corn flour company Grupo Minsa, will lead “a council linked to the private sector, to encourage private investment associated with regional development and the relocation of companies,” Sheinbaum said.
The 32-year-old businesswoman — who was included on Forbes magazine’s 2024 list of the 100 most powerful women in Mexico — is already working for the president-elect’s transition team in a role focused on nearshoring investment and regional development.
Sheinbaum didn’t reveal who else will be on the council Gómez will lead, only saying that the members will be “various businessmen and businesswomen.”
After meeting with CEOs of major banks including BBVA, Scotiabank México and the Bank for International Settlements, Sheinbaum also told reporters that “there is a lot of interest in investing in Mexico,” where foreign direct investment is on the rise as companies expand their existing operations or relocate here as they seek to shorten supply chains and in some cases reduce their reliance on Asian countries, especially China.
“We have a lot of enthusiasm for the next six years,” Sheinbaum said, adding that her government’s aim will not just be to attract business investment but to ensure that money flowing into Mexico leads to development across the country and generates “well-being” for all Mexican people.
“We spoke [to the bank executives] about shared prosperity, which is the central axis of what our government will be in the next six years,” she said.
“… We spoke about our development project for the country … and the infrastructure we’re going to develop,” Sheinbaum said, referring to the construction of new highways and railroads, among other plans.
Sheinbaum is also planning to create 10 “specialized” industrial corridors across Mexico, each of which will prioritize foreign and Mexican investment in different sectors.
“We have a lot of enthusiasm about the role Mexico will play in the coming years,” the president-elect said Tuesday, noting that the USMCA trade pact and “other international agreements our country has” make Mexico an attractive place to invest.
Ebrard, who also met with the bank CEOs, said that the reception to the incoming government’s regional development and investment plan was “very positive because it’s very definite, very specific.”
“… The investment climate we have is very good, perhaps the most optimistic we’ve seen so far this century,” he added, noting that companies made investment announcements for Mexico in the first half of 2024 that together totaled more than US $45 billion.
Sheinbaum also spoke to bank leaders about other aspects of her administration’s agenda, including its energy and water plans. The president-elect has pledged to invest more than US $13 billion in a renewables-focused energy plan, and is also committed to making water use “much more efficient” and building new water infrastructure, including aqueducts and dams.
The availability of water and electricity in Mexico is among the top concerns of foreign and Mexican investors. Other concerns include insecurity, potential disrespect for the rule of law and lack of infrastructure.
Seeking to calm concerns over a proposed judicial reform that Congress will consider later this year, Sheinbaum said last month that investors in Mexico have “nothing to worry about,” and that “their investments in Mexico are safe, obviously within the framework of our laws.”
The Mexican peso depreciated sharply after she won the June 2 presidential election in a landslide and a coalition led by the ruling Morena party secured large majorities in both houses of Congress that put it in a strong position to approve a raft of constitutional reforms.
However, the peso has now recovered some of the ground it lost, and was trading at 17.83 to the US dollar at 11 a.m. Mexico City time.
With reports from El Financiero, El Universal, El Economista, El PaÃs and ReformaÂ
The best way the government can increase national investment & attract foreign investment would be to lower the ISR tax rate from 30% to 20% and/or eliminate or lower the PTU. Currently businesses pay 40% of profits to ISR & PTU plus the shareholders have to pay another 10% on dividends. I would imagine most of these nearshoring companies will show very little profit in Mexico, preferring to declare it in countries with a more reasonable corporate tax rate. Also the payroll taxes are outrageous, which is why many companies try to avoid “the system”. Why should a business have to pay 4% state tax over payroll? The government should be thankful that businesses create employment. No company or person should have to pay more than 20% in income tax. Governments should have to plan balanced budgets and control their expenses.
Bingo!
Mexican News Daily please do an in-depth story on this topic.
Mark my word, the new business council is not going to improve the economy and make an impact on the economy. Nothing significant is coming out of the council that will make a big noticable in the economic. It only sounds “good” on paper but very little economic improvement. Government needs a new ecpnomic program that can generate new revenue without competing with foreign workers wages. There is only one new program that has the capacity to generate new revenue, and I happen to know and have that program. Contqct me for the details. [email protected].,in Houston, Tx.
My gut tells me she is well aware that you cant help the poor without generating revenue. I think she will be more pro businesses than AMLO. And security is key to attract businesses and tourism. She did well in that area in CDMX.
I guess this means mining permits will be approved again.
I was disappointed to read the priority businesses for the Mayan Corrider. Some of the poorest people in Mexico live in this Corrider. Adding services to sell trinkets, food and beverages to tourists will not raise people out of poverty. This is especially true since tourism is a partial year activity and can even dry up if the region has a Dengue fever outbreak or escalated violence from cartels. Also renewal energy does not require many employees.
And foreign businesses do not want to be extorted by cartels or be restricted by limited water and electricity resources. Sheinbaun needs to urgently address those 3 issues when she takes over from Obrador on October 1
45 Billion in foreign investment, a historic time for Mexico. Claudia will take Mexico’s economic growth to stratospheric levels thank you to AMLO’s work against corruption. International investors wouldn’t be investing these huge amounts of funds if they weren’t confident in Mexico’s governability.
You mean the governability of some States.