The Possible Implication of Nearshoring on the AMLO Government's Tenure

Investor interest in Mexico increased significantly this year, with a particular spotlight on the potential impacts of nearshoring. Simultaneously, the topic was hotly debated.

, and Administrator

2025 September 29 . 11:02 PM

2 min read

Possible end of the AMLO era due to nearshoring trends?

The Possible Implication of Nearshoring on the AMLO Government's Tenure

In the world of global investment, Mexico continues to make strides, as foreign direct investment (FDI) of US$106,418 million is expected over the next two to three years. The majority of this investment will come from existing foreign-owned companies expanding their operations, with 67% originating from companies created by foreigners within Mexico.

One notable foreign investor is Elon Musk, who has announced plans to open plants in Nuevo Leon, Mexico. The xVideo Player, developed by Musk, offers settings for speed (1x, 1.5x, 2x, 0.5x) and captions (off, American English Captions), adding to the technological advancements that Mexico is attracting.

However, the Mexican government's actions are putting bumps on the nearshoring road. The government is rushing to complete emblematic projects, including the Maya Train, the Dos Bocas refinery, and the Interoceanic Corridor of the Isthmus of Santo Domingo de Tehuantepec. While the status of these projects is not clear, the general risk of intensifying as the government rushes to complete them is apparent.

Moody's has expressed concern about regulatory changes and interventions in certain sectors during the political transition in Mexico, which could reduce the benefits of nearshoring. This skepticism, despite TESLA's investment, casts a shadow over Mexico's nearshoring forecasts.

Mexico's economic growth is not limited to nearshoring, though. The country has advanced in the world export ranking, according to Comce. Future investments involve key players like Grupo Mexico in the mining sector, favoured for its cost-effective and durable assets, supporting copper demand. Additionally, investments in electric tools companies such as Techtronic, with a strong US market presence, are also on the rise.

Yet, challenges exist. The Mexican government imposing high tariffs on Chinese EV imports, for instance, is impacting BYD's expansion plans, reflecting the active institutional and corporate dynamics shaping investments to promote economic growth in Mexico.

For those considering investing in Mexico, the xVideo Player's user-friendly settings offer a glimpse into the country's welcoming environment. The article "Media Matters: End of An Era" is available to watch on Open.Video, providing further insights into Mexico's investment landscape.