Sheinbaum's govt betting on seeking FDI and increasing national content

Mexican President Claudia Sheinbaum's government has assumed a strategy of proactively seeking more foreign direct investment (FDI) in important sectors, differentiating itself from the policy of her predecessor, Andrés Manuel López Obrador, an approach that has been well received by the private sector.

Through the ministry of economy, now led by former foreign minister Marcelo Ebrard, the government also aims to increase the national content of exports, while simplifying procedures to accelerate investments. For example, a new single-window system for simplification and digitization was recently introduced.

“How do we attract investment? I believe that in Mexico we have a strategy to actively seek investment, which wasn't necessarily the focus recently,” Vidal Llerenas, deputy minister of trade and industry, said during a webinar on FDI in Latin America hosted by the UN's Eclac on Thursday.

"In this way, we're building this new strategy to seek investment projects so they can be facilitated, and the key is also choosing the types of projects that we like best," he added.

The official underscored that while all investments are welcomed as long as they comply with the law, the government is particularly interested in those directed toward electromobility, to transition the gasoline and diesel industry towards electric vehicles.

“This is a priority, and it’s also related to microprocessors, investing in the battery chain and other elements required for that. It’s a very important area of opportunity,” Llerenas said.

Other sectors in which Mexico is interested in attracting more capital, according to the deputy minister, include medical equipment and pharmaceuticals, as well as those requiring high technological content, such as the aerospace industry and data storage, which would help enhance other areas within the services sector.

Llerenas highlighted that the government’s strategy also aims to increase national content, which he said remains low, especially when excluding the automotive sector. “We need to seek investment that allows us to enter the value chain, build and provide more local inputs, with foreign companies as well, but in Mexico.”

Susana Duque, general director of the Mexican business council for foreign trade, investment and technology (COMCE), emphasized during the webinar that among the best practices for attracting FDI, it is essential to align policies with a long-term vision that strengthens strategic sectors while benefiting local communities. She also mentioned Mexico’s proximity to the United States, the advantages of nearshoring, competitive costs and the regional integration framework provided by the USMCA trade deal with the US and Canada as key factors.

“This can be achieved by promoting collaboration between the government, foreign companies, universities, technical institutes and research centers. For example, dual training programs and joint research projects can facilitate technology transfer and the development of specialized talent, which is needed, thus increasing the added value of our economy,” Duque said. She also highlighted that industrial clusters are key tools because they connect foreign companies with local suppliers.

The COMCE director warned that FDI might have a limited impact due to infrastructure and human capital shortages in the country. This is where the importance of public policies aimed at strengthening local capacities comes in.

“It's essential to simplify procedures and ensure a stable regulatory environment.... The implementation of a single window for investors, for example, which has already been announced by President Claudia Sheinbaum, can facilitate and reduce costs while sending a clear message that Mexico is an agile and reliable country for doing business,” Duque said.

Duque also emphasized that attracting FDI is not just about how much arrives, but how well it is utilized if efforts are coordinated in a solid national strategy that enables Mexico to consolidate not only its position as a preferred investment destination but also to pave the way towards more equitable, sustainable and competitive development.

She also pointed out that Mexico is ranked ninth globally as a destination for FDI.