Wednesday, July 16, 2025

Mexico reports record foreign direct investment in first half of 2023

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BMW plant in San Luis Potosi, Mexico
A worker puts together a sedan at the BMW plant in San Luis Potosí. (BMW)

Foreign direct investment (FDI) in Mexico hit a record high of over US $29 billion in the first half of 2023, according to preliminary data published Wednesday. 

The Economy Ministry (SE) reported that FDI was US $29.04 billion between January and June, a 41% increase compared to the same period of last year if spending on the Televisa-Univisión merger and the restructuring of Aeroméxico is excluded from the investment total. 

Televisa sign
An important caveat to note is that the US $29.04 billion figure quoted for 2023 by the Economy Ministry is a 41% year-on-year increase only if a the Televisa merger and Aeroméxico restructuring in 2022 is excluded. (Cuartoscuro)

FDI was 5.5% higher in the first six months of 2023 compared to that received a year earlier including spending on the television industry merger and the restructuring of Mexico’s flag carrier. 

The SE said that FDI in the first half of the year came from 2,189 Mexican companies funded by foreign capital (such as subsidiaries of foreign firms), 2,631 trust agreements and one foreign company. 

The lion’s share of the $29 billion in  FDI —78% — came from reinvestment of profits, while 15% stemmed from loans and payments between companies of the same corporate group. Just 7% of the FDI total — $2.1 billion — was new investment, the SE said. 

The ministry said that the FDI data for the first half of the year is indicative of “investors’ confidence to maintain and increase their investments in the country.”    

The United States was by far the biggest source of foreign investment in Mexico in 2023. Hover over each segment to see the monetary amounts invested by each country. 

President López Obrador said Tuesday that “the environment for investment is very good in Mexico.”

“There are unbeatable conditions,” he said, adding that Mexico is the world’s “preferred” country for foreign investment. 

SE data showed that the United States was the biggest investor in Mexico in the first half of the year, with 43% of the $29 billion in FDI, or $12.4 billion, coming from that country. Spain ranked second, contributing 15% of the total, followed by Germany (9%), Argentina (8%), Japan (7%), the Netherlands (4%), Canada (4%) and the United Kingdom (3%). 

Five federal entities received 60% of the FDI: Mexico City was the biggest winner, getting $10.22 billion or 35% of the total, while Nuevo León secured 10% and each of Baja California, Jalisco and México state obtained 5%.  

Nuevo León has made major announcements this year about big foreign companies investing in the state, but Mexico City saw more than three times the state’s FDI in 2023’s first semester.

The SE said that 57% of the FDI total between January and June was directed to Mexico’s manufacturing sector. Among the manufacturing subsectors that benefited were the automotive, chemical, food and beverage and electronics industries. 

The financial services sector received 27% of the FDI total, while the temporary accommodation, mining, construction and transport industries got 5%, 3%, 2% and 2%, respectively. 

Numerous foreign companies announced investment in Mexico during the first half of 2023, money that will boost FDI totals in the near future.   

They included electric vehicle manufacturer Tesla, steel manufacturer Ternium and automaker BMW.       

Mexico News Daily 

Mexico’s central bank keeps interest rate at 11.25%

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Mexico’s central bank has decided to keep its benchmark rate high, despite declining inflation. (GRACIELA LÓPEZ /CUARTOSCURO.COM)

Mexico’s central bank has once again decided to keep its benchmark interest rate at a record high of 11.25% as inflation remains a concern. 

The Bank of Mexico (Banxico) announced that its five-member governing board unanimously decided to maintain the target for the overnight interbank interest rate at 11.25%. 

A man looks at exchange rates
A difference in interest rates has meant that the peso has strengthened against the US dollar for most of 2023. (Daniel Augusto/Cuartoscuro)

The key rate was raised to that level in March and kept there following monetary policy meetings in May and June. 

Banxico’s latest decision came after the national statistics agency (INEGI) reported Wednesday that annual headline inflation was 4.79% in July, down from 5.06% in June. 

Consumer prices have now declined during six consecutive months, but the central bank said in a statement that annual headline inflation and core inflation – 6.64% in July – are “still high.” 

It also said that “the inflationary outlook is still very complex, … complicated and uncertain throughout the entire forecast horizon, with upward risks.”

“Thus, in order to achieve an orderly and sustained convergence of headline inflation to the 3% target, [the board] considers that it will be necessary to maintain the reference rate at its current level for an extended period,” Banxico said. 

The bank said the same thing in May when it ended a monetary policy tightening cycle that lasted almost two years.  

Central banks in Brazil, Chile, Costa Rica and Uruguay have all cut interest rates in recent weeks after aggressive hiking cycles, but analysts cited by the Reuters news agency say that a reduction in Mexico’s benchmark rate is unlikely until late 2023. 

“When [cuts] do arrive, they will be more gradual than most currently anticipate,” said Jason Tuvey, deputy chief emerging markets economist at Capital Economics. 

Vegetables at a Mexican open air market
While consumer prices have declined, core inflation still remains high at 6.64%. (Victoria Valtierra Ruvalcaba/Cuartoscuro)

At 4.79%, annual headline inflation is still almost two percentage points above Banxico’s target, and the bank – which officially tolerates a 2-4% inflation range – is forecasting that it won’t go below 4% until the second quarter of 2024. 

The Bank of Mexico anticipates that the annual headline rate will fall to 4.6% in the final quarter of this year and reach 4.1% in Q1 of 2024. It predicts a 3.7% rate in the second quarter of next year, 3.4% in Q3 and 3.1% in the final quarter of 2024. 

Analysts cite Banxico’s high interest rate and the significant difference between that rate and that of the United States Federal Reserve (currently 5.25-5.5%) as one factor that has caused the Mexican peso to appreciate against the greenback this year. 

One US dollar was trading below 17 pesos on Thursday morning, but subsequently strengthened to close at 17.04 pesos, according to the Bank of Mexico.  

With reports from Reuters 

US and Mexico to remediate denial of labor rights at garment facility

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Garment factory
The INISA company, which owns a denim factory in Aguascalientes, was accused by union leaders of interfering with a worker vote on changing their collective bargaining agreement. (Victor Valtierra/Cuartoscuro)

The United States and Mexico have agreed to a remediation plan to address labor rights violations at the Industrias del Interior (INISA) denim garment factory in Rincón de Romos, Aguascalientes.

The agreement follows an investigation carried out by Mexico in response to a U.S. request in June 2022, which found that INISA workers were being denied the right to freedom of association and collective bargaining.

A woman assembles clothing in a maquila, a factory that uses imported materials to assemble products for export.
This was the first time the USMCA Rapid Response Labor Mechanism has been used in the garment industry. (Cuartoscuro.com)

It is the sixth time the two countries have agreed to a formal remediation plan under the Rapid Response Labor Mechanism of the United States-Mexico-Canada Trade Agreement (USMCA). It’s also the first time it’s been used within the garment industry.

“Through the Rapid Response mechanism, we have made it clear that companies are expected to respect the representative union and negotiate in real collective bargaining,” said U.S. Deputy Undersecretary for International Affairs Thea Lee.

The remediation plan includes several commitments from the Mexican government, including:

  • Ensuring that INISA disseminates and abides by a public, written statement guaranteeing noninterference in all union activities
  • Ensuring that INISA trains all company personnel and union representatives on this neutrality statement and implements a zero-tolerance policy for any violations
  • Offering a telephone line and/or direct email address for workers to anonymously report any intimidation, coercion or interference in their union activities
  • Conducting in-person workers’ rights training for all company personnel
  • Initiating sanctions proceedings if evidence emerges of any violations
  • Imposing appropriate sanctions against any individual, labor organization or company found to violate Mexican law.
Joe Biden, Andrés Manuel López Obrador and Justin Trudeau at the North American Leaders' Summit
The USMCA trade pact, between Canada, Mexico and the United States seeks to protect labor rights and promote trade between the North American nations in a way that’s different from previous trade pacts in the region. (Galo Cañas Rodríguez/Cuartoscuro.com)

U.S. Trade Representative Katherine Tai hailed the agreement as a positive example of international collaboration on labor rights. She pledged that the U.S. would closely monitor the implementation of the remediation plan.

The U.S. requested that Mexico investigate INISA after receiving a complaint in May via the Interagency Labor Committee for Monitoring and Enforcement (ILC) from two unions at the factory. 

The unions alleged that the company was coercing workers into accepting its proposed revisions to their collective bargaining agreement. Mexican authorities agreed to investigate, and on July 27, they issued a ruling upholding the validity of the complaint.

Specifically, the Mexican investigation found trade union discrimination against a union representative, company interference to promote a vote in favor of revising labor benefits and disinformation regarding the potential loss of labor benefits that would supposedly result from voting against the agreement. 

U.S. Trade Representative Katherine Tai said that the resolution demonstrated a positive example of international collaboration on labor rights. (Stephanie Chasez/Wikimedia)

INISA cooperated fully with the investigation, according to a statement by the Economy Ministry.

The ministry also reiterated Mexico’s commitment to comply with the Labor Reform of May 1, 2019, which guaranteed workers’ rights to freedom of association, a condition set by the U.S. in order to ratify the USMCA.

With reports from SwissInfo

International air arrivals in first half of year beat pre-pandemic stats

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Airport
International air arrivals are up 7.2% on pre-pandemic levels, although overall tourism figures still lag behind 2019. (vooqq/Unsplash)

Mexico saw 7.2% more international tourists arrive by air in the first six months of 2023 compared to the same period in 2019, before the pandemic. 

According to Tourism Minister Miguel Torruco Marqués, from January through June 2023, Mexico saw 10.8 million foreign tourists enter the country at international airports, compared to 2019’s figure of 10.1 million, an increase of 700,000.

Aeromexico's Boeing 737s lined up at the gates of the international terminal of the Mexico City International Airport (AICM).
The number of foreign tourists arriving by air is also 5.8% higher than last year, says the Tourism Ministry. (Shutterstock)

This year’s figure is also 5.8% higher than that registered from January through June of 2022, when the country received 10.2 million international tourists by air, suggesting that Mexico has been seeing a steady rise in tourism since pandemic restrictions in Mexico began to be fully lifted in 2022.

The three largest source countries for tourism to Mexico so far this year are:

  • United States (6.5 million tourists) 
  • Canada (1.3 million) 
  • Colombia (361,000) 

Together, these three countries accounted for 8.3 million visitors, an increase of 13.9% compared to the number of tourists from those countries in 2019.

Tourists in Punta Cancun
The majority of foreign tourists arriving in Mexico are from the United States, which topped the list ahead of Canada and Colombia. (Elisabeth Ruíz/Cuartoscuro)

The nation’s busiest airports for international tourism so far in 2023 have been: 

  • Cancún International Airport, with 4.8 million arrivals 
  • Mexico City International Airport (AICM), with 1.9 million 
  • Los Cabos International Airport, with 1.2 million

The three airports saw a total of 8.7 million international tourist arrivals, an increase of 4.4% compared to 2019’s numbers.

Other airports across Mexico received a total of 2.7 million tourists, surpassing 2022’s numbers by 18.3% during the same period.

Cancun T2
Cancun Airport has seen the largest number of foreign tourist arrivals in 2023. (Vzmp85/Wikimedia)

However, the sum turns out to be less than its parts: despite higher numbers of tourists arriving by air, the total number of international arrivals to Mexico — which includes land crossings and cruises — is still some 2 million lower than it was in 2019.

Average expenditure numbers by long-stay tourists who arrived by air for the first six months of 2023 wasn’t yet available. However, data from the Ministry of Tourism says that average expenditure between January and April of 2023 was US $10.7 billion, a figure up by 17% compared to that in 2022. 

According to a United Nations World Tourism Organization (UNWTO) report released earlier this year, Mexico is the sixth most visited country in the world, down four positions from 2021 when it ranked as the world’s second most visited country behind France.

Overall global tourism has been recovering significantly, according to the UNWTO, but in the first quarter of 2023, it was still down 20% compared to the same period in 2019, according to the organization’s website.

With reports from La Jornada 

Government finalizes purchase of Mexicana airlines

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Defense Minister Sandoval
Defense Minister Luis Cresencio Sandoval announced that the airline would fly to 20 national destinations out of the Felipe Ángeles airport in Mexico City. (Gob MX)

The Mexican government will purchase the brand name and some equipment of the defunct airline Mexicana de Aviación, better known simply as Mexicana, for 815 million pesos (US $48 million), Interior Minister Luisa Alcalde announced on Thursday. 

The money spent on the airline will be used to compensate more than 7,400 former employees who were left in the lurch when Mexicana went bankrupt and shut down 13 years ago.  

AMLO at press conference
The deal was announced at the Thursday morning press conference. (Gob MX)

The deal includes the transfer of three buildings and a flight simulator to the Mexican government, which will then revive Mexicana as a military-run commercial airline.

Starting Aug. 15, payments will be distributed among Mexicana’s former employees, who lost unpaid wages and benefits when the airline filed for bankruptcy in 2010. Before ceasing operations, the flagship company, founded in 1921, was Mexico’s longest-standing airline and one of the oldest in the world.

“Today, a historic agreement was reached to achieve justice for 7,407 Mexicana de Aviación workers, pilots, flight attendants, ground staff, trusted workers and retirees,” Alcalde said at President Andrés Manuel López Obrador’s Thursday morning press conference.

“The Ministry of Labor and Social Welfare (STPS) mediated with the different organizations, who held assemblies and consultations among the people [involved], the workers, to reach an agreement,” she added.

Luisa Alcalde
Interior Minister Luisa María Alcalde said the purchase was an “historic agreement”. (Gob MX)

Negotiations between the workers and the government over back pay have been ongoing for about three years. The government first announced an agreement to buy Mexicana’s brand and assets at the same price in January, but this stalled over the following months as a group of workers agitated for greater compensation.

In July, President López Obrador halted the negotiations, saying that the government would not make the purchase while the dispute continued.

“The brand would be in litigation, and we don’t want to buy a lawsuit,” AMLO said at the time. “Instead of the money being evenly distributed, as had been agreed, the lawyers went in, made noise and said no [to the deal]. They go to the judiciary [and] file appeals. And we cannot wait because the airline needs to start operating.”

On announcing the revived deal this week, Interior Minister Alcalde stressed the government’s commitment to “recover[ing] at least part of the compensation [the workers] have a right to.” She blamed the Mexicana debacle on the administration of former President Vicente Fox, whose government was responsible for privatizing the airline, selling it to Grupo Posadas. The airline went bankrupt five years later.  

Mexicana airbus
The airline was once state-owned, then transferred to private ownership in 2005 and went bankrupt in 2010. (Mexicana)

“In 2005 …[Mexicana] was privatized by the government of Vicente Fox, passing into the hands of Grupo Posadas, and in five short years they managed to dismantle and bankrupt what was once Mexico’s most important airline,” Alcalde said.

The general secretary of the Trade Union Association of Aviation Pilots (ASPA), José Humberto Gual, praised the current buyout plan as “an act of social justice” and symbolically presented AMLO with a pair of Mexicana pilot wings.

The government plans to relaunch Mexicana with ten Boeing 737-800s, Defense Minister Luis Cresencio Sandoval announced. These will fly to 20 destinations across the country – including Cancún, Guadalajara, Tijuana, Mérida, Oaxaca, León, Puerto Vallarta, among others –  out of the Felipe Ángeles International Airport (AIFA), which was opened by AMLO’s administration on the outskirts of Mexico City last year.

Tickets will go on sale starting in September, according to officials.

With reports from Reuters and Milenio

From magic to market: amber’s role in centuries of Chiapas’ culture

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Polished stones in the Amber Museum in San Cristóbal.
Amber has been part of Chiapas culture since before the arrival of the Spanish conquistadors. (Alejandro Linares García)

It is nearly impossible to avoid the numerous street vendors in San Cristóbal de las Casas offering you “authentic Chiapas amber” at a so-called special price. Pro-tip: no matter what anyone tells you, if it’s inexpensive, it isn’t real.

But the vendors’ presence does raise interesting questions about what amber’s role is in the state’s history and culture.

An amber fossil in the Amber Museum in San Cristóbal de las Casas
Chiapas amber on display at the Amber Museum in San Cristóbal de las Casas. (Alejandro Linares García)

Unsurprisingly, amber was an important tribute and trade item in Mesoamerica for many of the same reasons as in other parts of the world, its unique look and supposed magical and healing properties. 

But it never gained the favor with the Spanish after the conquest, as they were far more interested in silver and gold (both notably absent in Chiapas) and likely did not want to continue the gemstone’s pre-Catholicism’s associations. For centuries, the amber’s only value in Mexico was in amulets sold to indigenous mothers to keep the evil eye off their babies. So some amber would continue to travel from the Simojovel in northern Chiapas to San Cristóbal, as noted by travelers and writers like Franz Blom and Moisés de la Peña as late as the mid 20th century. 

But this would change by the end of that same century. Economic and political unrest in the 1970s broke up many large farms to the eventual benefit of many Simojovel families, but for a decade or so, many lost their livelihoods. In the 1980s, some did look to amber as an alternative form of income, mining and working the petrified resin, with their product destined for San Cristóbal. 

Simojovel, known as “the amber town,” is located in the state of Chiapas.

It was international interest starting in the 1990s that changed Simojovel’s fortunes. First, amber had come to the attention of mineral collectors in the U.S. who would pay for exceptional pieces. In 1996, the American Museum of Natural History held an exhibition about amber that included pieces from Chiapas, expanding interest. But it was 1994’s Zapatista uprising that introduced Chiapas to the world, and the result was zapaturismo: foreign idealists hoping to get a glimpse of the black-masked revolutionaries — and looking for a souvenir to take home.

By the 2000s, tourism and amber had grown important enough for the Chiapas government to promote both.

In the 2010s, Chiapas experienced an “amber rush” as the Chinese market discovered Chiapas’ supply. Demand and prices skyrocketed starting in 2012, with many gemstones making their way into beaded bracelets. But it did not last: the Chinese market became saturated, and the fever cooled considerably. 

Prices fell, but amber remains an important part of Simojovel’s economy, as well as of Chiapas’ identity. Although it can be found in a number of other municipalities such as Tapilula, Yajalón, Del Bosque, Pantelhó, Ixtapa-Soyaló and Totolapa, Simojovel remains the state’s “amber town” with most residents here dividing their economic activities between mining and agriculture. 

Amber miner working in Simojovel. (Jaime Avalos via Flickr)

Amber mining is important in this impoverished area because it does not require special equipment. One person simply digs in the relatively soft dirt of the mountain, and another sifts through it. But there is no guarantee that the mountain will be generous, so miners often make offerings of candles and incense to increase their chances. Most of what they do find makes its way to San Cristóbal, often to middlemen, and prices are always in flux. 

However, more Simojovel residents are learning to obtain greater value from the resource. Local artisan Elizabeth Mendoza says that when she began working the gemstone four decades ago, most miners simply sold unworked or lightly worked stones mounted on cardboard. Over time, artisans arose who could get better prices from polished or cut stones. Today, there are a number who will take the ancient resin all the way to a finished piece of jewelry or another final retail form.

Mendoza learned as a child that polished and cut amber brought more money. Some years ago, she met a “gringo hippie” passing through who showed her how to make jewelry by twisting copper and other wire. Impressed with the results, she and her husband went to Taxco and learned to work silver. Today, she is one of Simojovel’s success stories, inspiring more families to learn more. 

Working amber is physically easier than mining it, and many Simojovel women are involved in this stage of the process, as well as in marketing. Although the town’s amber trade has made it more open to the world and more liberal, it is still not easy to be a woman in the amber business.

Most work the material anonymously as part of their domestic chores. In general, Chiapas’ most prominent amber artisans are still men.

Initial working of amber at the workshop of Elizabeth Mendoza in Simojovel, Chiapas. (Elizabeth Mendoza)

Modern demand for Chiapas amber is driven by globalization. Many gemstones are still sent to the U.S. and China, making it difficult for local artisans to compete on price. International tourism is now a mainstay of San Cristóbal’s economy.

The promotion of Chiapas amber has a strong international component as well. Over 25 years ago, the state began an amber expo in the cities of San Cristóbal and Tuxtla Gutiérrez, the state capital. But in 2019, it decided to move the annual event to Mexico City, which multiplied attendance. The recently concluded 2023 event hosted 168 exhibitors from various parts of the state, with about 25,000 national and international attendees. 

The rise of the amber industry has had its positives and negatives for the state. Although tough work, amber mining is still more lucrative than subsistence farming. But artisans in Simojovel and San Cristóbal still sell mostly to intermediaries instead of engaging in more lucrative retail. 

There does not yet seem to be a Taxco-like future for Simojovel. Although the only highway in the area has improved over the decades, it is still a nearly four-hour trip on rough roads to get to this town tucked away in the mountains around San Cristóbal. 

Reaching Simojovel, Mendoza says, is still too difficult for any but the most adventurous of travelers. 

Leigh Thelmadatter arrived in Mexico over 20 years ago and fell in love with the land and the culture in particular its handcrafts and art. She is the author of Mexican Cartonería: Paper, Paste and Fiesta (Schiffer 2019). Her culture column appears regularly on Mexico News Daily.

Mexico maintains position as largest trade partner of the US

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Mexico was the United States' largest trade partner during the first half of 2023. The two nations traded almost US $400 billion between January and June. (Venti Views/Unsplash)

Mexico was the United States’ largest trade partner in the first six months of 2023, with the value of the exchange of goods between the two countries reaching a record high of almost US $400 billion, according to official U.S. data published Tuesday.

Mexico beat out Canada and China to claim the enviable title of largest trade partner of the world’s largest economy.

Avocado exports
Mexico was once again the United States’ largest trading partner. Here, workers in Michoacán prepare avocados for export. (Juan José Estrada Serafín/Cuartoscuro)

Mexico-U.S. trade totaled $396.6 billion between January and June, the United States Census Bureau reported. That figure – up 3.1% compared to the same period of last year – accounts for 15.7% of the United States’ total international trade in the first half of 2023, which was worth some $2.55 trillion.

The United States’ exchange of goods with Canada accounted for 15.4% of total U.S. trade, while China ranked as the third most important trade partner of the U.S. with commerce between those two countries representing a 10.9% share of the $2.55 trillion pie.

Mexico’s exports to its northern neighbor were worth $236.04 billion in the January-June period, a 5.4% increase compared to the first half of last year. Mexico had a 15.5% share of the U.S. import market, ahead of Canada’s 13.8% and China’s 13.3%.

United States’ imports to Mexico were worth $160.55 billion in the first half of the year – practically unchanged from the same period of last year – leaving Mexico with a two-way trade surplus of $75.49 billion.

Trucks at the US border
Mexico exports a diverse range of goods to the U.S., from fruit, to crude oil, to electronics to automobiles. (Omar Martínez/Cuartoscuro)

Mexico exports a wide range of goods to the United States including vehicles, auto parts, crude oil, electronics, fruit and vegetables, meat and beverages such as beer and tequila. U.S. imports to Mexico include gasoline, agricultural products including corn used as livestock feed, capital goods such as machinery and plastics.

Gabriel Casillas, head of Latin America economics at Barclays, said that the appreciation of the Mexican peso – which can make Mexican products more expensive when sold abroad – didn’t seem to have had an effect on Mexican exports in the first half of the year. Demand for Mexican goods outweighed the increased cost of same due to the appreciation of the Mexican currency, he said. 

“While we don’t see a slowdown of the U.S. economy it will be difficult to see a downturn in Mexican exports,” Casillas said.

Mario Correa, an independent economist, said that “North America is the natural destination for Mexican exports” and noted that the United States-Mexico-Canada Agreement, the free trade pact that superseded NAFTA in 2020, “gives us a great advantage compared to other regions and countries.”

Enormous Canadian, Mexican and U.S. flags hang from stone archways in the National Palace in Mexico City, which the presidents of each country standing at small podiums far beneath each flag.
The USMCA free trade agreement has governed trade between Mexico, the United States and Canada since 2020. (LopezObrador.org.mx)

The USMCA seeks to strengthen the integration of the Mexican, U.S. and Canadian economies and thus make the three countries less dependent on supply chains outside the region. The data on the Mexico-U.S. trade relationship in the first half of 2023 provides a concrete example of a benefit the free trade agreement has brought to Mexico, even as it succeeds Canada as the United States’ largest trade partner.  The USMCA – largely negotiated while former presidents Enrique Peña Nieto and Donald Trump were in office – has also helped spur the nearshoring phenomenon in Mexico, in which foreign companies relocate here to take advantage of proximity to the United States.   

Luis Adrián Muñiz, deputy director of economic analysis at Monterrey-based brokerage Vector, said that Mexico’s ranking as the United States’ largest trade partner this year “makes perfect sense” considering the significant investment made by companies that have relocated here from other parts of the world.

Numerous foreign companies have recently set up operations in Mexico, or taken the decision to do so, to take advantage of quick and easy access to their main market – the United States. A range of other factors, including affordable labor costs, the presence of a large educated workforce and growing challenges associated with operating in China have also encouraged firms to relocate to Mexico. 

The growing nearshoring phenomenon was cited as a major reason why foreign direct investment reached an impressive $18.6 billion in the first quarter of the year, according to preliminary data that is invariably revised upward. 

A robot in a Tesla vehicle factory
Nearshoring, where foreign businesses relocate production closer to target markets, has proved a winner for Mexico in the last year – with US $18.6 billion flooding into Mexico in Q1 2023 alone. (Wikimedia Commons)

To further develop Mexico’s exporting potential, the country needs a robust and diversified energy sector that includes the generation of electricity from renewables, Correa said. 

Marcelo Ebrard, the former foreign affairs minister who resigned in June to focus on winning the ruling Morena party’s nomination for the 2024 presidential election, said late last year that Mexico needs to increase the use of renewables “at a rate even faster than the United States” to ensure it can comply with any clean energy requirements the U.S. imposes on exports to that country. 

Ebrard subsequently said that Mexico would collaborate with the United States to double its capacity to produce renewable energy by 2030. 

President López Obrador on Tuesday emphasized the importance of the trade relationship between Mexico and the United States. He noted that Mexico has recently supplanted Canada as the United States’ largest trade partner and said he was hopeful that the nation he leads would hold onto that position.

“The environment for investment is very good in Mexico, there are unbeatable conditions,” he said, adding that Mexico is the world’s “preferred” country for foreign investment. 

With reports from El Financiero and El Economista

AMLO signs decree to protect sacred Indigenous sites

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AMLO and Wixarika
President López Obrador said he was inspired to issue the decree after visiting with the Indigenous residents of Santa Catarina last year. (Presidencia/Cuartoscuro)

In honor of the International Day of the World’s Indigenous Peoples on Wednesday, Mexican President López Obrador signed a decree to protect a number of Indigenous sacred sites and pilgrimage routes around Mexico.

The sites of Isla del Rey in San Blas; Isla de Alacrán in Chapala; Cerro Gordo in San Bernardino de Milpillas, Durango; Wirikuta in Real de Catorce, San Luis Potosí; and Santa Catarina in Jalisco have now been afforded new protections against unwanted development.

Wixarika collecting peyote at Wirikuta in San Luis Potosi, Mexico
A member of the Indigenous Wixárika visits the sacred site of Wirikuta in San Luis Potosí, to harvest peyote, used in rituals and in daily life. The site, threatened by mining interests, was named in President López Obrador’s decree. (Iván Stephens/Cuartoscuro)

Also protected by the decree are pilgrimage routes of the Wixárika (Huichol), Cora and Tepehuano peoples, as well as of the Mexicanero people of Jalisco, Nayarit, Durango and San Luis Potosí.

AMLO said that the decree is partially the result of a visit he made to the community of Santa Catarina, Jalisco, last September. The president also spent much of 2022 visiting Indigenous communities around Mexico to discuss security plans in native communities.  Such communities are targeted in several states by criminal groups for aggression, kidnapping and murder. Several Indigenous community leaders have been killed, apparently for fighting against development or criminal incursion on their lands.

In the past, the federal government has done little to combat the problem, especially in areas where powerful, highly armed cartels dominate. 

The sites included in AMLO’s decree are places that strengthen cohesion among Indigenous peoples, especially now that many such communities have scattered populations across Mexico and even into the United States.

“My government has made the decision to recognize and protect the cultures and spiritual values ​​of the peoples that are the heart of Mexico,” the president said at his morning press conference. “I have instructed all public servants to comply with this decree and stop all attacks [and] invasions of their lands and sacred places.”

The Indigenous people of Santa Catarina, Jalisco, now protected under the decree, continue to live in traditional homes. Some residents speak do not speak Spanish. (Gobierno de Mexico)

To publicize the needs of native peoples around the world, Aug. 9 is commemorated as the International Day of Indigenous Peoples by the United Nations, established in 1982. In Mexico, many activities will take place over the next five days. 

Isla del Rey has a long ancestral history for the Wixárika people, who for centuries have made offerings there to the sea goddess Aramara.

The Wixárika consider Isla de Alacrán, located in neighboring Jalisco, to be the place where Earth and the underworld meet through the waters of Lake Chapala.

At Cerro Gordo, the Tepehuan community of San Bernardino of Milpillas, Durango make offerings and conduct rainmaking ceremonies with the participation of council elders, medicine men and civil authorities.

Indigenous people and President Peña Nieto
Former president Enrique Peña Nieto celebrates International Day of the World’s Indigenous Peoples in 2015. (Gobierno de Mexico)

San Luis Potosí’s Wirikuta, another sacred site of the Wixárika, is filled with open landscapes where peyote grows wild. The Wixárika make a pilgrimage there every year to collect the hallucinogenic plant for ceremonies and daily use. 

Santa Catarina is a community of more than 130 people who live in traditional Indigenous homes and where some people speak only their native language (not Spanish).

With reports from El Universal and Aristegui Noticias

So you want to be an expat? Here’s how to make it in Mexico

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90% of expats in Mexico also said they were “happy with their lives,” as opposed to 72% of expats in other countries. (Unsplash)

Every year, InterNations — which bills itself as “world’s largest network for people living and working abroad” — conducts an “expat satisfaction” survey of thousands of its members living all over the world. 

Mexico took the spotlight in 2023, with InterNations users voting it the number-one place worldwide to live.

Map with results of InterNations' 2023 Expat Insider survey
This year’s edition of InterNations’ Expat Insider survey, which polls expats on various factors of their life abroad, ranked Mexico as #1 worldwide in expat satisfaction. (internations.org)

Citing factors like quality of life, feeling welcomed, cost of living, ease of settling in, affordable housing and a beautiful culture, almost 12,000 expats gave Mexico a big thumbs up. And, 90% of expats in Mexico also said they were “happy with their lives,” as opposed to 72% of expats in other countries. 

These rave reviews have made many people think more seriously about actually moving to Mexico. But how can you actually do it? 

After living in Mexico for almost 20 years, I’ve learned that there’s no single way to make your expat dream a reality. More than 1.5 million Americans live in Mexico, and you can bet each one’s journey was different, with their own style, timetable and priorities. 

That being said, here are some tips to make your transition easier and help you relax and enjoy the sometimes bumpy — but always amusing — ride you’ve just begun.

Doctor sees a patient at an IMSS hospital.
Mexico has a variety of options for medical coverage that expats can access. (IMSS/Cuartoscuro.com)

Do your due diligence

Research everywhere you can think of. Check and double check information. Don’t rely on hearsay; look at Facebook pages, blogs and YouTube, then investigate some more.

Remember: if it sounds too good to be true it probably isn’t true. 

Visit the place you’re interested in and see how it actually feels once you’re on the ground. While you’re there, talk to anyone you can; most folks are friendly and willing to answer the millions of questions you’ve probably come up with.

Check out housing and location options

Your new life is going to look very different than the one you’re leaving, and you may not know exactly what that means. Houses, condos and apartments can be found at every price point, with wildly differing amenities. Consider renting for a year or more while you figure out what you want.

As you ponder the future, think about where you see yourself: a busy, cosmopolitan city, a peaceful, rural paradise or something in between, bearing in mind that all those look different in Mexico than what you’re likely used to. Think long and hard about what your priorities are, but if they’re unclear at this point, that’s OK too.

Mexico City is enchanting, but it’s much bigger than what you might normally call a “city.” Keep this in mind when considering the locations you might like to live. (Unsplash)

Explore medical options and facilities

If you’re retiring and of senior age, you’ve probably given this lots of thought already. You’ll be looking for expert medical care by English-speaking professionals, something that’s not available everywhere in Mexico.

As you research, dig deep into details you might not consider in your home country. Check out the local hospitals, clinics and medical centers: what resources and technology do they have? Can they give you a tour of the facilities? Cities with big expat populations, like Puerto Vallarta, have excellent medical resources that will be able to take care of your health needs in a way you’re used to.

You may have heard about Mexican IMSS health insurance, but look beyond the clickbait headlines and do your research! It’s not free: costs depend on age and physical condition. You’ll also want to visit the local general hospital before signing up. While Medicare doesn’t cover costs out of the U.S., some insurances and Advantage Plans do.

Business basics

Where will you keep your money? A bank in your home country, a Mexican bank, or both? Be sure to check if your current bank charges a fee for international withdrawals; if it does, consider switching to another bank that doesn’t.

Cash will take you far in Mexico. Still, you may need to open a Mexican bank account to pay for some services including Internet. (Shutterstock)

How about a phone plan? Mexican companies offer amazing cell phone plans — many of which include free calls to the U.S. and Canada — but maybe you want to keep your U.S. number. Will it work where you’re moving to? If you want access to U.S. TV and streaming channels, how will you manage that?

Update and make copies of personal documents — physically and in the cloud — and consider designating someone in your home country to get your mail and keep copies of your important papers, just in case.

Cost of living

Be very skeptical of articles or videos peddling a one-size-fits-all monthly budget for living in Mexico. Your cost of living can indeed be much lower than in the United States or Canada, but it also depends on your lifestyle and where and how you want to live. 

Utilities usually cost much less in Mexico, and rent, property taxes and home prices can be much lower than they are in the rest of North America. On the other hand, if you prefer to live in a new condo with lots of amenities, costs will be higher — potentially much higher.

Cost of living comparison
This graph compares cost of living in various cities in the U.S., Canada and Mexico, on a scale where New York is 100. (Far Homes)

Question carefully what your costs will be specific to where you’re going and with your preferred lifestyle in mind. Ask on Mexico expat Facebook pages or, better yet, go for a visit and talk to folks in person who actually live there.

There may be some sort of expat meetup group or community center where you can ask some of these questions and get real-time answers and information. Also ask about those sorts of options when you contact the expat online forums. Consider talking to realtors about costs too, although get a recommendation from fellow expats for a realtor to talk to.

No matter how much preparation and research you do, it’s inevitable that there will be unexpected surprises along the way. It helps to remember that you chose to be on this adventure precisely to create and enjoy a new life that isn’t completely the same as what you’d been living before.

Embrace your journey into the unknown of your new expat life with your eyes open but also with a happy heart, a smile on your face and the freedom to create the future you’ve been dreaming of!

Janet Blaser is the author of the best-selling book, Why We Left: An Anthology of American Women Expats, featured on CNBC and MarketWatch. She has lived in Mexico since 2006. You can find her on Facebook.

WestJet to add new flights from Vancouver to Mexico’s beaches

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WestJet 37-MAX 8
The Canadian airline has increased offerings to Mexican coastal airports this winter. Canada is Mexico's second largest source of tourism. (Ken Fielding/Wikimedia)

Canadian carrier WestJet has announced its winter schedule out of Vancouver, featuring six beach destinations in Mexico.  

Departing from Vancouver International Airport, the new routes include Ixtapa-Zihuatanejo (starting in December), Mazatlán (starting in November), and Huatulco (starting in October), with additional flights in the updated schedule for Cancún, Los Cabos and Puerto Vallarta. 

WestJet Boeing 737-800NG
The new flights mean a 14% increase in capacity from Vancouver to Mexico. (Martin Kulcar/Wikimedia)

“We are thrilled to bring more opportunities for our guests across B.C.’s Lower Mainland, to seamlessly connect to their favorite destinations across Mexico this winter,” said WestJet Vice-President Chris Avery.

According to WestJet, its winter schedule will see a 14% increase in capacity from Vancouver to Mexico, more than any other airline flying from Canada’s second-busiest airport. 

Starting in December, WestJet passengers in the Greater Vancouver Area can also fly out of Abbotsford International Airport to Puerto Vallarta and San José del Cabo.  

Mexico is one of the most popular winter destinations for Canadians, and is the second largest source of tourists to Mexico, after the United States. Mexico saw 3.6 million international tourists via air during the final two months of the 2022-23 winter season – an increase of 135.3% compared to 2022. Of these, 656,293 arrived from Canada. 

 With reports from Simple Flying and Canada ETA