Nearshoring continues at a slower rate compared to the "avalanche of investment" seen in the last few years, according to a recent analysis. (Shutterstock)
Nearshoring in Mexico is losing pace as the occupation of industrial spaces decreases, according to commercial real estate market intelligence company SiiLA.
The reconfiguration of global supply chains following the COVID-19 pandemic spurred significant investments in Mexico as companies looked to develop nearshoring activities in North America.
Following four record-breaking years, the nearshoring phenomenon in Mexico appears to be slowing. Around 31% fewer foreign companies occupy warehouse space in Mexico compared to during the nearshoring peak in 2021, according to SiiLA’s analysis.
“Nearshoring to Mexico is not an inexhaustible source of new companies. What was an avalanche of investments three or four years ago is now a less frenetic flow. This, far from being a crisis, is a natural adjustment of the market,” SiiLA states.
“This does not mean a crisis for the industrial real estate sector, but the signs of recession and the protectionist measures of the United States have added uncertainty to the outlook and affected investment expectations,” the firm added.
SiiLA estimates that over 1,200 companies entered Mexico’s industrial real estate market between 2020 and 2024. Around half of them were foreign companies looking to reduce operating costs.
After several record-breaking years, the threat of tariffs is one of the factors causing Mexico’s booming industrial real estate market to slow down. (Shutterstock)
These companies occupied approximately four out of every 10 square meters of industrial space in Mexico from 2021 to 2024, equivalent to around 13 million square meters.
The entry of new Mexican companies to the space has also fallen by 43%, according to SiiLA.
In 2024, around 5.26 million square meters of industrial warehouse space was occupied, marking a decrease of 14.7% from 6.17 million square meters in 2023.
Silvia Gómez, a market analyst at real estate data tech agency Datoz, does not believe the tariffs will dramatically change Mexico’s investment environment, although some regions of the country may be affected more than others.
“Some companies may make the decision not to set up shop [in Mexico], but it will not be the majority. Many others are already established and have benefits, such as good labor and tax incentives. Despite the pressure and tariffs, we continue to see investment announcements,” Gómez was reported saying by news site El Economista.
Mexico’s principal industrial regions
The industrial warehouse market in Mexico’s Bajío region — comprising the states of Aguascalientes, Guanajuato, Querétaro, Jalisco, Zacatecas, Michoacán and San Luis Potosí — experienced strong growth in 2024, where the net absorption of warehouse space was around 28.28% of the national total, according to Datoz.
Investment continues despite the slowdown: Mercado Libre, Mexico’s leading warehouse tenant, plans to invest US $2.5 billion in the country in 2025. (File photo)
Nationwide, the Argentina-based Amazon competitor Mercado Libre was the biggest warehouse tenant in 2024, occupying 11% of the total rented square meters in Mexico and the firm announced plans to invest U.S. $2.5 billion in Mexico in 2025.
There has been an influx of investment from China in Mexico in recent years, with Chinese firms taking over nearly 3 million square meters of industrial warehouse space between 2019 and 2024.
“From 2019 to 2024, investments from Asia represented 61% of the total accumulated demand (for industrial warehouses) for nearshoring in Mexico,” the commercial real estate services and investment firm CBRE Mexico stated.
In addition to Chinese companies, firms from the U.S., South Korea, Taiwan, Germany, Canada, Denmark, Italy, Switzerland, France and Sweden all rented warehouse space.
Some of the principal industries investing in nearshoring activities in Mexico are the automotive, household appliances and electronic devices industries.
Yes, you read the headline correctly. It's an exploding hammer festival. Seriously. (Travel Continuously)
All over the world, people celebrate special occasions with festivals. While most of them have a unique element of attraction, there’s one festival in the Bajío of central Mexico that may be the most extraordinary of all: the Exploding Hammer Festival.
Called the Festival del Martillo Explosivo in Spanish, this festivity stands out for the practice of hitting the ground with 30-kilogram hammers to detonate an explosive device. It has been taking place for centuries in the small community of San Juan de la Vega, near Celaya, Guanajuato.
This is exactly as dangerous as it looks. (Gigazine)
The birth of the Exploding Hammer Festival
Despite being centuries old, the festival is barely known outside of Celaya, as authorities have tried to forbid it due to its risky nature. Last year, regional newspaper El Sol Del Bajío reported 43 people, including four children, severely injured by the explosions.
This somewhat violent festival honors the community’s patron, Juan Aquino de la Vega, fondly called San Juanito. It re-enacts a 17th-century skirmish between Aquino de la Vega, a wealthy miner, and some bandits who stole his gold. Another version of the story says that de la Vega was himself a bandit and kind of local Robin Hood who stole from rich miners, redistributing their gold among the poor.
As a faithful devotee of Saint John the Baptist, the legend goes, de la Vega promised to organize a festival every year in his honor for the miracle of recovering his gold. Although de la Vega is a folk saint and not recognized by the Catholic Church, he’s considered the town’s patron and highest deity.
The violent re-enactment of a battle
The Exploding Hammer Festival takes place on Shrove Tuesday, the last day of the Carnival period in the Christian liturgical calendar. It sees male participants split into two sides: the ladrones, or bandits, and the arrieros, the muleteers fighting for Aquino. Each side takes turns blowing up the hammers at the local soccer field.
Los truenos de San Juan - Dir. Santiago Maza
The hammers are fitted with homemade explosives made of potassium chlorate and sulfur, which are hit against stones or iron plates, causing a deafening explosion that’s the highlight of the event.
“The part of the ‘thunderbolt’ is visually impressive,” Mexican movie director Santiago Maza Stern told newspaper Sin Embargo regarding his 2019 documentary “Los Truenos de San Juan.”
“The smell of gunpowder, the sound of each explosion, the columns of smoke that rise from each thunder are very striking,” he said.
The festival, which continues for five days with other activities, also involves theatrical productions at dawn re-enacting episodes from the town’s history, like robberies and arrests.
“For me, the carnival is full of magical moments,” Maza told Sin Embargo.
Banned by authorities
Despite the magic the festival evokes in many, authorities attempt to halt the practice every year as it has been illegal since 2000. But they’ve been unsuccessful every time.
As shown in the documentary, participants smuggle gunpowder into the town and secretly prepare small packets with the explosive mixture before attaching them to the heads of the hammers.
“We’ve always done this, and we will continue to do it,” a participant says in the film. “Fingers fly off, chunks of flesh fly off, we get burns. Still, we have to blast.”
At her daily press conference Wednesday, President Claudia Sheinbaum faced questions about a new anti-nepotism bill Congress approved that opens the door to potential reelections for all government offices. (Graciela López/Cuartoscuro)
Among the questions President Claudia Sheinbaum fielded at her Wednesday morning press conference were ones on the anti-nepotism reform approved by the Senate on Tuesday and the proposed U.S. tariffs on Mexican exports that are scheduled to take effect next week.
Here is a recap of the president’s Feb. 26 mañanera.
The Senate passed the legislation sent by Sheinbaum earlier this month. As Sheinbaum herself describes it: “From 2030, there will no longer be reelection and there won’t be relatives who inherit positions.”
Anti-nepotism reform approved, but it won’t take effect until 2030
Sheinbaum noted that the reform she sent to Congress stipulated that it should take effect in 2027, and declared that her position continued to be that it should enter into force in 2027.
“I understand that … in order to have [two-thirds] majority [support] from the parties that are part of the alliance [led by the ruling Morena party] … they agreed that it wouldn’t take effect until 2030,” she said.
“… It’s a decision for the senators and deputies,” Sheinbaum said.
“… What matters to Mexicans is that there isn’t nepotism in electoral processes,” she said.
Governor of Guerrero Evelyn Salgado with her father, Félix Salgado, who was a Morena candidate for the position she ultimately ran for after he was disqualified by the National Electoral Institute. (File photo)
“… It will go into the constitution, which is the most important thing, … not in 2027, in 2030, but in the end it will go into the constitution,” Sheinbaum said before noting that the reform still must be ratified by a majority of state legislatures.
“From 2030, there will no longer be reelection and there won’t be relatives who inherit positions,” she said.
“And he who does it in 2027 will look very bad, right? … We hope that, at least for the political party I come from, they don’t put any relative [up for election],” she said, referring to state and federal elections that will be held in 2027.
On the X social media platform on Tuesday, José Díaz Briseño, a Reforma newspaper correspondent in the United States, wrote that “Mexico’s ruling coalition passed a ban on nepotism” in government, but noted that it won’t take effect until 2030.
He added that “this allows” the brother of the governor of Zacatecas, the wife of the governor of San Luis Potosí and the father of the governor of Guerrero “to run for the office their relative currently holds.”
Morena is in power in Zacatecas and Guerrero, while the Ecological Green Party of Mexico, an ally of Morena, is in office in San Luis Potosí.
Another reporter put it to Sheinbaum that the Morena-led coalition “postponed the reform to carry out a final act of nepotism.”
She responded: “President López Obrador used to say that ‘politics is choosing between inconveniences.’ Sometimes it’s not about what you want but rather what can be done.”
Sheinbaum reiterates she will seek call with Trump, ‘if necessary’
Not for the first time this week, Sheinbaum said that “if necessary” she will seek to speak by telephone to United States President Donald Trump as Mexico seeks a new deal to stave off 25% tariffs on Mexican exports that are scheduled to take effect next Tuesday.
Sheinbaum said she’s ready to meet with Donald Trump by phone to reach a deal on tariffs. (Gage Skidmore via Flickr/Cuartoscuro)
She noted that dialogue between the Mexican and U.S. governments is ongoing.
“The meetings intensified this week and we’re always going to seek to reach an agreement within the framework of respect for our sovereignty and constitution,” Sheinbaum said.
Trump said Wednesday that 25% tariffs on Mexican and Canadian imports would take effect April 2. However, Commerce Secretary Howard Lutnick indicated immediately afterwards that the tariffs were still due to take effect next Tuesday March 4 at the conclusion of a one-month suspension.
Reuters reported that a White House official “said Trump’s previous March 4 deadline for the 25% tariffs on Mexican and Canadian goods remained in effect ‘as of this moment,’ pending his review of Mexican and Canadian actions to secure their borders and halt the flow of migrants and the opioid fentanyl into the U.S.”
Reuters also said that Trump’s remarks “sowed confusion during his first cabinet meeting on Wednesday” and “prompted jumps in the value of the Canadian dollar and Mexican peso versus the greenback.”
Mexican security officials to meet with Marco Rubio on Thursday
U.S. Secretary of State Marco Rubio, left, with President Donald Trump. Members of Mexico’s security cabinet are traveling to Washington, D.C. to meet with Rubio this week. (Donald Trump/X)
Sheinbaum told reporters that members of the federal government’s security cabinet were traveling to Washington D.C. on Wednesday to meet with United States Secretary of State Marco Rubio on Thursday.
She said that Security Minister Omar García Harfuch, Defense Minister Ricardo Trevilla Trejo, Navy Minister Raymundo Pedro Morales Ángeles and Foreign Affairs Minister Juan Ramón de la Fuente would meet with Rubio, who last week designated six Mexican drug cartels as foreign terrorist organizations.
“They have a meeting tomorrow,” Sheinbaum said, adding that the Mexican officials would “seek to close a [security] cooperation agreement within the framework of our sovereignties.”
Mexican author Dahlia de la Cerda has been nominated for the prestigious International Booker Prize for the translation of her debut novel, "Reservoir Bitches," first published in Mexico. (International Booker Prize)
A Mexican author is a finalist for 2025’s coveted International Booker Prize, which is awarded exclusively to translated fiction.
Dahlia de la Cerda — the only Hispanic author to have made it onto the prize’s longlist this year — was nominated to the list of 13 finalists for her debut book, “Perras de Reserva“ (translated into English as “Reservoir Bitches”), the title a nod to the Quentin Taratino film “Reservoir Dogs.”
De la Cerda’s book takes an unflinching look at daily life in Mexico for women. (International Booker Prize)
The book, originally published in Spanish by Mexican publisher Sexto Piso in 2022, has been longlisted for its English edition, published by Scribe UK and translated by Julia Sanches and Heather Cleary.
“Life’s a bitch. That’s why you’ve got to rattle her cage, even if she’s foaming at the mouth,” the book’s blurb on the Booker site says.
The quote captures the irreverent and angry tone of de la Cerda’s short-story collection, made up of 13 stories about 13 women facing daily life in Mexico, with its constellation of gender violence and marginalization. Among the raw subjects her stories cover are clandestine abortion and femicide.
The Booker committee calls “Reservoir Bitches” a “gritty, streetwise, and wickedly funny fiction from Mexico.”
De la Cerda told the newspaper Excelsior that her goal “was to show a variety of diverse women — in very adverse, complex contexts — and to have them be different voices from those that had been heard in literature.”
According to De la Cerda’s website, the main influences on her vision and writing are her childhood and young adult experiences in the state of Jalisco, where she faced, among other things, harassment from organized crime.
De la Cerda says her Booker-nominated book is based on experiences she had growing up in the state of Jalisco. (Dahlia de la Cerda/Instagram)
Born into a family she said was “unrelated to art,” in Aguascalientes, with parents who worked in nightclubs and bars, de la Cerda studied philosophy but couldn’t graduate due to a lack of resources.
“I am a companion in self-managed abortions, I have a cholo-gothic aesthetic, I love horror, and I am passionate about exploring violence in its multiple forms,” she says about herself on her website.
The International Booker Prize
The younger sibling to the Booker Prize, the International Booker Prize, established in 2016, considers novels and short-story collections originally written in foreign languages and translated to English for publication in the United Kingdom or Ireland.
The jury evaluated 154 works submitted by publishers, all published (or to be published) between May 1, 2024, and April 30, 2025. The longlist includes authors from Palestine, Denmark, Romania, Switzerland, Italy, India, Suriname, Japan (2 authors), and France (3 authors).
The £50,000 award is divided in half between author and translator. All finalists receive £5,000, also divided between author and translator.
The winner will be announced on May 20, in a ceremony to be held at the Tate Modern in London.
2024's preliminary FDI figure was recordbreaking, but much of that amount came from companies with longstanding presence in Mexico, like the Canadian company Bombardier, which has repeatedly reinvested in its Querétaro facilities since coming here in 2006. (Bombardier)
Foreign direct investment (FDI) in Mexico totaled US $36.87 billion in 2024, according to preliminary data published by the federal Economy Ministry (SE) on Tuesday.
The figure is the highest preliminary FDI total on record, but falls short of the $48.35 billion Mexico received in foreign investment in 2013, according to Bank of Mexico (Banxico) data. The 2013 total got a significant boost from the sale of Grupo Modelo to Belgian beverage and brewing company AB InBev.
As has been the case for several years, the United States was Mexico’s top FDI source, followed by Japan, Germany and Canada. (Economy Ministry/MND)
FDI in 2024 was 2.3% higher than the preliminary total for 2023 and 1.1% higher than the updated total for that year. The 2024 preliminary total will also likely be revised upward.
The SE’s preliminary data shows that almost half of the FDI in Mexico last year came from the United States. New investment accounted for less than 10% of the FDI total, with the bulk of the money coming from the reinvestment of profits by companies that already have a presence in Mexico.
Around 90% of the foreign investment last year came into the country in the first half of the year, with less than 2% received in the final quarter.
Over half of the FDI went to Mexico’s large manufacturing sector, while Mexico City received the largest portion of the money among the country’s 32 federal entities.
US the biggest investor in Mexico followed by Japan
United States companies invested $16.51 billion in Mexico last year, a figure that accounted for 45% of total FDI inflows. The SE highlighted that Coca-Cola and AutoZone are among the U.S. companies with a presence in Mexico. The U.S. has long been the top investor in Mexico. Based on companies’ country of origin, the next biggest foreign investors in Mexico last year were:
Japan: $4.28 billion, accounting for 12% of Mexico’s FDI total. Compared to 2023, Japan rose two places to become the second largest foreign investor in Mexico.
Germany: $3.78 billion, accounting for 10% of the total. Germany rose two places to third.
Canada: $3.21 billion, accounting for 9% of the total. Canada dropped one place to fourth.
The Netherlands: $1.88 billion, accounting for 5% of the total. The Netherlands rose three places to fifth.
As this graphic of car plants in Mexico shows, a major contributor to Mexico’s FDI numbers are foreign auto manufacturers. (Jesús Valdéz Peña/X)
Investment from the United States, Japan, Germany, Canada and the Netherlands accounted for 81% of all FDI Mexico received last year.
New investment declined more than 30% last year
Bank of Mexico data shows that new foreign direct investment last year totaled $3.17 billion last year, accounting for 8.6% of total FDI in Mexico.
New FDI declined 34% compared to the preliminary total for 2023. New investment as a share of total FDI fell more than four points from just over 13% in 2023.
Citing Banxico data, the Reforma newspaper reported that the new investment total was the lowest for any year since 1993.
The decline in new investment is seemingly incongruent with the “once-in-a-lifetime” nearshoring opportunity Mexico is said to be facing.
A significant number of foreign companies have announced investment plans for Mexico in recent years, but — as the low new FDI total shows — the vast majority of the money has not yet flowed into the country.
Gabriela Siller, director of economic analysis at Mexico’s Banco Base, said on X on Tuesday that “the nearshoring opportunity is real, but is being wasted in Mexico.”
“The share of new investment in total foreign direct investment in 2024 was the lowest on record,” she wrote above a graph supporting her statement.
Nuevo León Governor Samuel García, who has made attracting nearshoring companies a major priority for his state, on a trip in 2024 to India, where he promoted his state’s viability for direct foreign investment. In general, however, said Banco Base’s Gabriela Siller, Mexico is wasting its nearshoring opportunities. (Cuartoscuro)
Reinvestment of profits by foreign companies with an existing presence in Mexico contributed $28.71 billion to FDI in Mexico in 2024, accounting for 77.9% of the total.
The reinvestment of profits total increased almost 8% compared to the preliminary data result for 2023.
A third contribution to Mexico’s FDI total in 2024 came from loans and payments between companies of the same corporate group. That segment of FDI increased by over 8% to $4.99 billion last year, accounting for 13.5% of the total.
FDI slowed to a trickle in the fourth quarter of 2024
Banxico data shows that Mexico received almost three-quarters of its 2024 FDI total — $27.05 billion — in the first quarter of last year. More than 16% of the total flowed into the country in the second quarter of 2024, while over 8% was received in Q3.
In the final quarter of the year, Mexico received just $676.48 million in FDI, representing less than 2% of the total.
Donald Trump’s election to the U.S. presidency in November appears to have caused a major slowdown in Mexico FDI in the last quarter of 2024. (Ron Sachs/Consolidated News via Shutterstock)
Uncertainty related to tariffs, the outcome of the 2026 USMCA review and Mexico’s judicial reform is not conducive to investor confidence, and thus appears likely to deter foreign investment in Mexico in the near term.
Nearly $20 billion in FDI went to manufacturing
The SE data shows that Mexico’s vast manufacturing sector received $19.88 billion in FDI last year. That figure accounts for 54% of the FDI total.
The “transport equipment” sector, which includes automakers and manufacturers of auto parts, received 50% of the FDI in the manufacturing sector.
The next biggest recipients of manufacturing sector FDI were the beverages and tobacco industry; the computing equipment industry; and the chemicals industry.
Fifty percent of FDI in the manufacturing sector went to the “transport equipment” sector, which includes automakers and makers of auto parts. (Wikimedia Commons)
Just over $5.9 billion in FDI went to the financial services industry, accounting for 16% of the total. The next biggest recipients of FDI in Mexico in 2024 were:
The temporary accommodation sector (including hotels): $2.74 billion, or 7% of the FDI total.
The transport sector: $2.73 billion, or 7% of the total.
The wholesale commercial sector: $2.3 billion, or 6% of the total.
The mining sector: $1.52 billion, or 4% of the total.
The retail sector: $1.3 billion, or 4% of the total.
The professional services sector: $850 million, or 2% of the total.
Mexico City received almost 40% of FDI in 2024
Mexico City, where numerous foreign companies have offices, was once again the top recipient of FDI in Mexico in 2024.
The SE reported that the capital received $14.42 billion in FDI last year, a figure that accounts for 39% of Mexico’s total.
The next largest recipients of FDI were México state (7% of the total), Baja California (7%), Nuevo León (6%) and Chihuahua (4%).
Rounding out the top 10 were Guanajuato (4%); Baja California Sur (4%), Puebla (3%), Jalisco (3%) and Querétaro (3%).
While northern Mexico cities get a lot of media attention regarding FDI, Mexico City frequently is the nation’s top receiver of foreign direct investment. (Oscar Reygo/Unsplash)
Three of the states in the top 10 are northern border states, where many foreign companies have manufacturing plants from which they can easily export products to the United States.
Three other states in the top 10 are part of the Bajío region, a hub for automakers and aerospace companies, among other manufacturers.
The 10 states listed above together received $29.26 billion in foreign investment last year, accounting for 79% of Mexico’s total.
No states in southern Mexico are among the top 10 FDI recipients, but the federal government hopes that might change in the years ahead.
The Mexican government itself has invested heavily in southern and southeastern Mexico in recent years through the construction of major infrastructure projects in the region, including the Maya Train railroad on the Yucatán Peninsula and the Olmeca Refinery on the coast of Tabasco.
Once sweet, this new savory rugelach recipe is still a delicious embrace of fluffy dough and stuffed goodness. (Yair rand/CC SA 3.0)
The world is full of stories about people running. Sometimes they’re running toward something: fame, fortune or a better life. More often, they’re running from something, like persecution or poverty. The Jews of Eastern Europe knew all about this.
The first major migration of Ashkenazi Jews to Mexico took place in the early 20th century, fleeing the same pogroms that sent their cousins to Ellis Island. They found that there were already Jews in their new country, mainly Syrians who had migrated from the Ottoman Empire. The Ashkenazi Jews set up businesses and community institutions. They made homes. They built synagogues. They learned Spanish. And, of course, they ate.
Mexico City’s Monte Sinaí synagogue was founded in 1923 by Ottoman Jews as the country’s first Jewish temple. (Gobierno de la Ciudad de México)
Which brings us to rugelach. The Ashkenazi Jews of Mexico weren’t about to give up their famous pastries, even if they now lived in a place where chili peppers outnumbered snowflakes a thousand to one. So the rugelach stayed. And, being in Mexico, it changed.
Somewhere along the way, someone thought: What if we filled it with cajeta? Cajeta is Mexican caramel, made from goat’s milk. It is sweet, sticky and, if you do not respect it, capable of gluing your teeth together permanently. Someone else tried guava paste, because guava paste makes everything better.
The little crescent-shaped pastries became something new. They weren’t entirely Eastern European anymore, but they weren’t entirely Mexican either. They were something in between— like the people who brought them to Mexico, rugelach had left home and found itself somewhere new.
Now, in this version made with smoked salmon, the traditionally sweet rugelach finds itself somewhere even newer: the world of savory flavors.
Savory smoked salmon rugelach
Smoked salmon, another member of the pantheon of Ashkenazi Jewish food, now joins rugelach to create something new. (Ruth Hartnup/CC-BY-2.0)
Ingredients
For the dough
8 oz cream cheese, softened
2 cups all-purpose flour
½ tsp salt
For the filling
4 oz smoked salmon, finely chopped
2 tbsp cream cheese, softened
1 tbsp Dijon mustard
1 tbsp fresh dill, chopped
½ tsp lemon zest
¼ tsp black pepper
For assembly and topping
1 egg (for egg wash)
1 tsp water
1 tbsp sesame or poppy seeds (optional)
Instructions
Make the dough. In a bowl, mix cream cheese, flour, and salt until a soft dough forms. Divide into two discs, wrap in plastic, and chill for at least 1 hour.
Prepare the Filling. Combine the smoked salmon, cream cheese, mustard, dill, lemon zest, and black pepper in a bowl. Mix until spreadable.
Prep the oven. Preheat oven to 375 F (190 C). Line a baking sheet with parchment paper.
Assemble the rugelach. Roll out one dough disc into a 12-inch circle. Spread half the filling evenly over the dough.
Shape the rugelach. Cut the dough into 12 wedges. Roll each wedge from the wide end to the point to form crescents. Repeat with the second dough disc.
Bake the rugelach. Place crescents on baking sheet Brush with egg wash and sprinkle with sesame or poppy seeds. Bake for 20-25 minutes or until golden and cool slightly before serving.
Stephen Randall has lived in Mexico since 2018 by way of Kentucky, and before that, Germany. He’s an enthusiastic amateur chef who takes inspiration from many different cuisines, with favorites including Mexican and Mediterranean.
After spending four years in prison for fraud, Fyre Festival founder Billy McFarland says he has "amazing plans for Fyre 2." Quintana Roo authorities say they didn't get the memo. (Katrina Julia/Unsplash)
The Fyre Festival, a fraudulent luxury music festival held in 2017 that was the subject of documentaries released on Netflix and Hulu, is attempting a second edition on Isla Mujeres in Mexico’s Riviera Maya.
However, local Quintana Roo authorities say they have not authorized the forthcoming festival — which is scheduled to take place in just three months.
“Derived from information circulating in the media about the event ‘Fyre Festival II,’ the General Directorate of Tourism of Isla Mujeres informs that no person or company has requested permits from this office or Municipal Government department for said event,” the city government of Isla Mujeres said in a statement on social media.
News of the event’s return spread fast online after its 33-year-old founder — and convicted fraudster — Billy McFarland posted on X on Monday that the festival would take place on Isla Mujeres from May 30 to June 2.
In his post, McFarland wrote that “Fyre 2 is a three-day escape to the Mexican Caribbean” where attendees will “explore by day” and “come together at night to celebrate with music.”
The press release also promises first-class accommodations thanks to a collaboration with the “Mexican Caribbean’s finest hospitality providers.”
Acknowledging the festival’s spectacular failure in 2017, for which he spent four years in prison, McFarland promises that this time around, he’ll do things right.
“I’m sure many people think I’m crazy for doing this again. But I feel I’d be crazy for not doing it again,” he wrote. “The new team and I have amazing plans for Fyre 2. The adventure seekers who trust the vision and take the leap will help make history.”
Tickets for Fyre 2 range from US $1,400 to $1.1 million.
What happened with Fyre 1?
The original Fyre Festival, which sold day passes for $500 to $1,500, and VIP packages including airfare and accommodation for $12,000, was scheduled to take place in April 2017 in the Bahamas. It gained popularity after it was heavily promoted on social media by influencers and celebrities before unfolding in a monumental disaster.
When attendees arrived at the still-under-construction venue on the island of Exumas, they were met with major disorganization, flimsy camping tents instead of luxury villas and the now legendary cheese sandwich, which was served to underwhelmed attendees on the first day of the event.
As images of the makeshift festival went viral on social media, bands that were booked to perform, such as Blink-182 and Major Lazer, canceled their performances.
One year later, McFarland pleaded guilty to charges of wire fraud, bank fraud and making false statements to federal officials.
In an interview with MND's Peter Davies, Carmona expressed optimism about President Sheinbaum's proposed electricity reform and discussed the investment opportunities for the sector. (se.com)
On Feb. 6-7, Mexico News Daily and Querencia hosted the “Future of Mexico Forum” at the Querencia Private Golf & Beach Club in Los Cabos, Baja California Sur. The forum brought together leaders from Mexico and the United States to discuss the future of Mexico across a diverse range of topics. As part of this Forum, the MND team conducted a series of exclusive interviews with each of the speakers and will be sharing the highlights with you in this series.
On the second day of the event, the CEO of Querencia Jorge Carrera moderated a session on “Mexico’s Energy Landscape” with Jesús Carmona Colina, president and managing director of Schneider Electric Mexico & Central America.
In a subsequent interview with Mexico News Daily, Carmona said that Schneider, a France-based multinational, is a “world leader” in “electrical distribution, industrial automation, associated services and sustainability services.”
“So we enable electricity to happen,” he said.
Mexico News Daily Future of Mexico Forum: In conversation with Jesús Carmona Molina
He said that most of the products the company makes in Mexico — such as low-voltage electrical distribution boards — are exported to the United States.
This article largely focuses on the electricity situation in Mexico. It draws on Carmona’s comments in his forum session, and his remarks during his interview with MND.
‘I think we’re moving in the right direction’
Carmona said that President Claudia Sheinbaum has “correctly recognized that more energy is needed in Mexico” to meet demand, including from the country’s growing industrial sector.
He also noted that there is an energy imbalance in Mexico, with ample electricity in some parts of the country and a shortfall in others.
Among the federal government’s energy objectives, as outlined in the Plan México economic initiative, is to increase electricity generation by 22,000 megawatts, or 22 gigawatts by 2030. In Plan México, the government said it would invest US $12.3 billion over the next six years to build new power plants, $7.5 billion to strengthen transmission networks and $3.6 billion to improve distribution networks.
Under the reform, the Mexican state via the Federal Electricity Commission has a constitutional right to generate and supply the majority (54%) of electricity in Mexico. Private companies share the remaining 46% of the market.
Referring to the government’s electricity plans, Carmona said that “even if they don’t work to the full extent,” they will still be “beneficial for Mexico.”
“Maybe if you just get 60% of what’s outlined, or 50% or 40%, it’s better than doing nothing,” he said.
“… So do I see positive indications that we’re on the right path with the new energy reform? With allowing the 46-54 [share of the electricity market] between private and public, with allowing the 700 kilowatts for self-generation without permits, with allowing 700 kilowatts to 20 megawatts [self-generation] with permits and storage? Yes, I think we’re moving in the right direction,” Carmona said.
“Does it mean everything in … [the plans] I like? No there are things I believe probably could be done differently, but I’d rather spend my time on what will work rather than complaining about the nuances of what I’d prefer to be different,” he said.
Carmona stressed that Mexico needs to “unlock the potential for electricity self-sufficiency,” which homes and companies can achieve through measures such as the installation of solar panels. He highlighted that electricity consumers can also be producers.
Although the energy reform guarantees Mexico’s state-owned energy companies preeminence in the Mexican market, it will at least provide clear operating rules for foreign firms wishing to operate in Mexico. (Rogelio Morales/Cuartoscuro)
Carmona also said he is hopeful that private investment in Mexico’s electricity sector will accelerate once the new energy reform is implemented.
Carmona said he believes that Mexico will “move in the right direction” with regard to increasing the use of renewables in the years ahead.
“We might dislike the pace, but I think we’ll move in the right direction in terms of how the Mexican energy matrix — clean vs not clean — will look moving forward, which today is far from what we desire,” he said.
Carmona said that all new self-generation projects will generate clean energy.
“The fastest way to set up a new plant for five megawatts … is solar,” he said.
“… Sun is something we get [in Mexico]. We get good quality sun for solar energy production,” Carmona said.
Agustín Barrios Gómez is a founding partner of International Capital Partners, a former Mexican Congressman, and a member of the Mexican Council on Foreign Relations (COMEXI).
I was recently asked by two large companies with manufacturing operations in Mexico whether I thought that Mexico would be the victim of the United States’ “beggar thy neighbor” protectionism.
Everyone seems to be playing a game of “will he, or won’t he,” which plays perfectly into a strategy that seeks to inject uncertainty into the trade relationship. Keeping everyone guessing increases the cost of doing business with Mexico (and Canada and China, etc.), which is what the current U.S. president wants.
Trump remains committed to imposing 25% tariffs on Mexican exports to the United States — at least for today. (X)
According to the Wall Street Journal, “some companies, including networking-equipment company Cisco Systems, fashion company Tapestry and clog and sandal company Crocs, have included the impact of tariffs in their latest guidance. Others, including Mexican-inspired restaurant company Chipotle Mexican Grill, consumer-products maker Clorox and cereal maker WK Kellogg have excluded it.”
My advice is to ignore the tariffs. If they do come to pass, the market will be shocked out of its complacency and will correct on three fronts.
First, the peso will devalue, thereby negating much of the impact of the increased costs.
Second, the stock market will send a signal that it never expected the government to shoot American competitiveness in the foot.
Third, the move will immediately impact inflationary expectations (which are already at their highest level since the pandemic), thereby making the cost of borrowing more expensive. That means higher costs for mortgages and higher costs for the federal government to service its gargantuan debt. Faced with this reality, it is unlikely that tariffs, if imposed, will last.
In terms of actual economic impact on Mexican-based manufacturers, companies will have part of their cost absorbed by devaluation and the rest will be borne by their clients and, ultimately, the consumer. When there is full employment, companies have pricing power, which the current crop of CEOs remembers well, having raised prices during the supply chain crisis of the pandemic. Even companies that weren’t affected took advantage of the opportunity to both make their wares more expensive and to impose “shrinkflation” on their customers (i.e. you now get 8 units for the price of 10).
But a strange fetish for tariffs has captured the imagination of the man Americans elected to lead them. Ignoring the lessons of history, especially the Smoot-Hawley tariffs that plunged the U.S. into the Depression in the 1930s, President Trump thinks that Americans can somehow benefit from everything being more expensive and scarcer.
Reality will force the system to self-correct. In the meantime, the best advice is the old British admonition to “keep calm and carry on.”
Agustín Barrios Gómez is a founding partner of International Capital Partners, a former Mexican Congressman, and a member of the Mexican Council on Foreign Relations (COMEXI).
Drink, dance, cycle and contemplate art in Los Cabos this March. (El Squid Roe)
The largest monthlong event during March in Los Cabos is Spring Break, the annual migration of college students to bars and beaches mostly around Cabo San Lucas. Mango Deck on Playa El Médano is ground zero for those who want to witness this seasonal bacchanal — or avoid it.
Events celebrating art, culture, and cuisine are also abundant this month in Los Cabos and take place at locations around the municipality.
Sabor a Cabo, Los Cabos’ largest food and wine festival, already took place in February 2025. However, the accompanying rural edition held annually to celebrate the municipality’s acclaimed farm-to-table scene and traditional regional culinary culture, is still yet to come.
Dates: March 2
Location: La Huerta Escondida, San José del Cabo
Cost: 1800 pesos for adults, 200 pesos for kids 6 to 12, and free for those younger
The historic Art District in San José del Cabo takes center stage each Thursday
evening from 5 pm to 9 pm during high tourist season — November through June — when residents and visitors alike are invited to stroll its cobblestone streets and peruse the many eclectic fine arts galleries. For an event within the event, check out acclaimed local artist Ivan Guaderrama’s interactive exhibits, which bring art to life in new and interesting ways (Thursdays, 5:30 – 9:30 p.m.).
Dates: March 6, 13, 20, 27
Location: Álvaro Obregón No. 20, Gallery District, San José del Cabo
The ingredients used by Los Cabos’ best chefs largely come from Miraflores, the municipality’s famed organic farming community. However, few tourists visit Miraflores. This festival is a great opportunity to do so, as it provides a fresh and delicious introduction to regional gastronomy and the flavors that make it so memorable.
What’s a Mexican vacation without mariachis? Local hotel Hacienda del Mar has ensured family-friendly mariachi fun for March with a themed fiesta featuring abundant food and drinks, and two hours of entertainment courtesy of Mexico’s most iconic musical style.
Dates: March 14
Location: Hacienda del Mar, Carretera Transpeninsular Km. 10.5, Tourist Corridor
Cost: 1090 pesos for adults, 590 for kids ages 5 to 12
The annual festival honoring San José del Cabo is always held in and around March 19, the feast day for its patron saint, although the name of the original mission in 1730 (San José del Cabo Añuití) included a nod to another patron, José de la Puente, the man who funded it. The weeklong celebration of the city’s rich history includes events both sacred (the mass in honor of St. Joseph) and secular (the crowing of a festival queen and food, drink, and music).
Dates: March 15 – 22
Location: Centered around Plaza Antonio Mijares, San José del Cabo
The 30th anniversary of this regional arts and culture extravaganza will be held in La Ribera instead of the traditional location at Hotel Palmas de Cortez in Los Barriles. However, as always, the festival will showcase with the work of regional artists, with food and drink courtesy of local restaurants, winemakers, and craft brewers, and folkloric Mexican dancing from dance troupes representing Los Cabos and La Paz.
Dates: March 16
Location: La Ribera Community Plaza, La Ribera, East Cape of Los Cabos
One of the can’t-miss events on the local calendar, this small mountain hamlet about 35 miles south of La Paz was once the richest town on the Baja California peninsula thanks to its rich mines (closed since the 1920s). Its always well-attended annual arts festival features music and folkloric dancing, arts and crafts, food vendors, and a chance to see local attractions like the Museo de la Música and the 35-meter smokestack “La Ramona” said to have been designed by Gustave Eiffel (yep, that Eiffel).
Don’t forget to pack your “kiss me, I’m Irish” shirt. St. Patrick’s Day, in Cabo San Lucas as in the U.S., is an occasion for festive fun, food and drinks, and a celebration of all things green. The biggest party is thrown by iconic local bar, El Squid Roe, complete with DJs to keep the music pumping. Downtown bar San Patricio Irish Pub is also worth a stop, even though the Guinness isn’t served on tap.
Dates: March 17
Location: El Squid Roe, Blvd. Lázaro Cárdenas 1112,Cabo San Lucas
Cost: US $103 for three hour open bar, plus giant cup and official t-shirt
If you’ve ever thought the Tour de France bicycle race would be even more scenic if it were held in La Paz, Baja California Sur’s capital city, now’s your chance to find out. Picturesque coastal routes covering 40, 73.8, and 126.2 kilometers (about 25, 46, and 78 miles, respectively) are open to entrants, with the start and finish line set on the city’s seaside malecón.
Dates: March 30
Location: Kiosko del Malecón, Paseo Álvaro Obregón, Zona Central, La Paz
Whale watching season is rapidly drawing to a close, meaning there’s only a little more than a month left this spring to see some of the more than 5,000 blue, gray, humpback, and other whales that have migrated from their arctic feeding grounds to breed in the shallow water coves and inlets of beautiful Baja California Sur.
Dates: December 15 – April 15
Location: Sea of Cortés and Pacific Ocean
Cost: Free, with tours available at various price points
Chris Sands is the Cabo San Lucas local expert for the USA Today travel website 10 Best, writer of Fodor’s Los Cabos travel guidebook and a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily. His specialty is travel-related content and lifestyle features focused on food, wine and golf.
