Redwood Index Spotlights Queretaro as Cross-Border Growth Hub

The Bajio-Mexico City-Queretaro corridor is emerging as a major retail and industrial hub, reports Redwood Logistics in the 2Q25 Redwood Cross-Border Index. The report sheds light on Mexico’s shifting trade landscape and the regulatory changes shaping cross-border flows. 

“Hundreds of people are flocking to Queretaro daily, rapidly transforming the area into a major retail hub with surging consumption. To effectively meet customer expectations amid the growth, logistics service providers must strategically integrate themselves deeply within Mexico, moving beyond mere border operations,” says Jordan Dewart, President of Operations, Redwood Mexico.

The report draws parallels between Bajio-Mexico City-Queretaro corridor and the “Texas Triangle,” which includes Houston, Dallas-Fort Worth, Austin, and San Antonio. In both cases, the concentration of population, labor, and capacity facilitates stronger supply chains and balanced trade flows.

Southbound demand is on the rise, driven by Central Mexico’s expanding retail sector, anchored by Walmart de México, and ongoing nearshoring trends, reads the report. Carriers are increasingly seeking southbound shippers to balance networks, a dynamic supported by Mexico’s resilient economy. Despite tariff concerns, Mexico posted 0.7% GDP growth in 2Q25, up from 0.2% in 1Q25, while FDI and venture investment continue to strengthen manufacturing and retail replenishment in Central Mexico.

“Mexico’s transformation into the United States’ primary trading partner continues, undeterred by past, present, or future challenges. This ongoing investment south of the border is demonstrably shortening cash cycles for companies in both nations, fueling economic growth amidst turbulence,” says Dewart.

On Aug. 11, 2025, Mexico implemented new Automatic Export Notice requirements for exporters of specific goods, including turbines, parts for electric motors, transformers, other electrical machinery, and fiber optic cables. Under the regulation, companies must file an official notice through the National Foreign Trade Information System (SNICE) platform. The process involves submitting a free-form letter with export details alongside a structured Excel form for regulatory review. Authorities have committed to a 10-business-day approval window, signaling an effort to balance oversight with trade facilitation.

“This new measure suggests a strategic move by Mexico to enhance its control and monitoring over the export of these particular industrial components and technologies. It is aimed at various objectives, including ensuring compliance with international trade agreements, managing domestic supply chains, or monitoring the flow of sensitive technologies,” says Dewart.

Redwood Expands in Queretaro

To align with the region’s growth and mitigate potential trade disruptions, Redwood Mexico recently opened a new office in Queretaro. This expansion reflects the company’s strategy of meeting customers where demand is strongest, offering localized expertise in navigating Mexico’s evolving regulatory and commercial landscape. By deepening its presence in the Bajio, Redwood aims to strengthen client relationships, improve responsiveness, and streamline operations in one of Mexico’s fastest-growing economic corridors.