Mexico Offers Tax Breaks to Lure Manufacturers, But Infrastructure Concerns Remain
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Mexico issued a decree granting tax breaks to attract companies looking to relocate operations closer to customers (nearshoring). Targets major export industries like automaking and semiconductors.
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Incentives include accelerated investment deductions up to 89% in 2023-2024. Additional 25% deductions for worker training.
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Aims to benefit from industry moves to reduce dependence on China. But concerns remain about lack of infrastructure investment.
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Tax breaks welcomed but doubts persist over energy policy, failure to provide water, power for companies.
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Faces regional competition for investment. Measures not seen as "game-changer" amid infrastructure doubts.