Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319689 
Year of Publication: 
2025
Series/Report no.: 
SWP Comment No. 23/2025
Publisher: 
Stiftung Wissenschaft und Politik (SWP), Berlin
Abstract: 
With the reconfiguration of international supply chains, Mexico has gained importance as a location for new foreign investments. The country has been able to benefit from nearshoring, that is, the relocation of services or production processes closer to consumer markets. This is associated with lower logistics costs and often better management of supplier relationships. However, this boom in investments has abated due to various uncertainties - not least being Washington's threats to raise tariffs, which burdens the economic prospects associated with nearshoring. Mexican President Claudia Sheinbaum is attempting to counter this trend, but in view of the increasingly urgent demand by the United States for third countries to adopt an anti-Chinese course, Mexico is at risk of being caught in the trap of "security-shoring" and losing its autonomous room for manoeuvre. This is already forcing Mexico - as well as its economic partners who have invested there - to realign their production processes.
Subjects: 
Mexico
foreign direct investment (FDI)
nearshoring
relocation
services
production processes
consumer markets
President Claudia Sheinbaum
Donald Trump
Uniteds States
China
United States-Mexico-Canada Agreement (USMCA)
Tesla
Elon Musk
International Monetary Fund (IMF)
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Research Report

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