It is no surprise that Donald Trump's arrival to the U.S. presidency has posed new challenges for many nations, particularly for its main trading partner: Mexico. However, this geopolitical shift has also opened doors for Mexico to rethink its positioning on the international stage with its other key strategic partners.
In response to this evolving global landscape, the Mexican government has launched the “Plan Mexico: Strategy for Equitable and Sustainable Economic Development for Shared Prosperity.” This initiative aims to address various aspects of economic growth, focusing on solidifying nearshoring by attracting foreign investment through tax incentives and administrative simplifications while also strengthening the national and regional markets to lay the groundwork for the country’s economic growth from 2025 to 2030.
A key recent development within this strategy was the publication of the “Decree Granting Tax Incentives to Support the National Strategy Known as ‘Plan Mexico’” on January 21, 2025. This decree aims to promote new investments and foster innovation while supporting the growth of small and medium-sized enterprises (SMEs). With a substantial allocation of 30 billion pesos (approximately 1.5 billion USD), the strategy is designed to catalyze investors and establish Mexico as a global leader in nearshoring.
The tax incentives outlined in the decree are substantial: taxpayers can immediately deduct investments in new fixed assets acquired between the entry into force of the decree (January 22, 2025) and September 30, 2030. These measures have the potential to catalyze foreign direct investment and stimulate economic activity within the country.
To ensure proper management and allocation of these funds, the Evaluation Committee, composed of various government entities, will be responsible for verifying compliance with program requirements.
Another crucial aspect of the decree is its emphasis on workforce training and innovation. The tax incentives extend beyond physical investments, offering deductions for increased spending on worker training and innovation initiatives. In collaboration with the Ministry of Public Education, the federal government aims to implement a dual education system, equipping employees with the necessary skills to adapt to an ever-changing labor market while ensuring employers have access to a highly skilled workforce.
In this context, on March 21, 2025—three months after the decree’s publication—the Mexican government issued the “Agreement issuing the Guidelines for the implementation of the Decree granting tax incentives to support the national strategy called 'Plan México', to promote new investments, encourage dual training programs, and drive innovation.” This agreement provides further details on the decree’s implementation, including specifics on the Evaluation Committee, Compliance Certificates, Investment Projects, and key procedures for applying the incentives.
According to the agreement, before submitting any project, interested parties must first obtain a Compliance Certificate, which confirms that applicants meet the issued requirements, as well as the eligibility criteria and parameters. This is the first step before being eligible for any type of incentive regarding Plan Mexico and can also be revoked through the Committee if there are irregularities.
Once the Compliance Certificate is obtained, applicants must then submit their Investment Project, Collaboration Agreement with the Ministry of Public Education, or Investment Project for the Development of Inventions, as appropriate. The Evaluation Committee will review and approve these submissions, with a response expected within four business days.
This set of measures presents a clear opportunity for investors looking to capitalize on Mexico’s advantages as a business relocation hub. With a strong emphasis on innovation, technology, workforce development, and sustainable economic growth, the National Economic Development Strategy serves as a platform to position Mexico as an attractive destination for both foreign and domestic investments.
However, in our view, the success of this initiative will depend on effective and transparent execution. The decree faces several challenges regarding its realization, from the proper allocation of resources to accurately measuring its real impact on the national economy. Continuous monitoring of this program will be essential, not only to ensure that it achieves its objectives but also to determine whether it will truly transform the economic landscape in the way it envisions.
Ultimately, the National Economic Development Strategy and “Plan Mexico” represent a bold move to position Mexico as a leader in the new global nearshoring landscape and an exceptional opportunity for investors seeking to strengthen their presence in the Mexican market or take advantage of the country’s strategic and competitive benefits. However, the true challenge, -and opportunity- lies in directing these efforts into measurable benefits for the country, its citizens, and its investors, ensuring they become drivers of real, sustainable, and reciprocal economic growth with a lasting positive impact.
Thank you to Perez Correa Gonzalez for this article.
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