Opening a Broader Dialogue With The Industry: Sheinbaum

Amidst nearshoring, Mexico stands at a pivotal juncture in 2024 with its upcoming presidential elections. Making history, the country sees two women vying for the top position: Claudia Sheinbaum from the Morena party, and Xóchitl Gálvez from the coalition Frente Amplio por México.

In response to this momentous occasion, candidate Sheinbaum has spearheaded a national relocation strategy named “Dialogues for Transformation”. Under this initiative, she has formed a team focused on electoral policies tailored to her candidacy’s issues. Additionally, a second team comprising 12 specialists across 12 crucial areas has been established. 

"This non-partisan team serves two main objectives: engaging with sectors that have felt overlooked and enriching the country's plan through dialogue," says Altagracia Gómez, President, Grupo Minsa, at the Mexico Nearshoring Summit 2024.

Gómez, overseeing the regional economic development and relocation table, underscores their core mission of fostering amidst the unprecedented opportunities brought about by nearshoring. "Despite geopolitical uncertainties, it is evident that Mexico is poised for a transformative period”, she emphasizes. 

However, the influx of investments has also subjected President López Obrador’s administration to scrutiny, particularly regarding its energy and foreign trade strategies. These critical aspects raise questions about the approach Sheinbaum, representing the current ruling party, intends to pursue.

According to Gómez, Mexico has the potential to leverage this new wave of globalization to usher in a new era of capitalism – one that rewards not only efficiency and productivity but also emphasizes positive impacts of environmental, social and governance (ESG) issues. To harness nearshoring effectively, Gómez’s team proposes two key strategies: investment planning and a relocation strategies.

The investment planning strategy aims to ensure shared prosperity, translating macroeconomic gains into tangible benefits such as improved living standards and wages. Additionally, the focus is on fostering innovation and avoiding dependence solely on cheap labor. Gómez emphasizes the importance of enhancing Mexico's logistics sector and promoting technology transfer to achieve competitiveness and sustainability goals.

The national investment strategy, on the other hand, revolves around strategic policies, priority sectors, and infrastructure projects. While Mexico historically lacked a cohesive industrial policy, there's a growing recognition of the need for public policies to drive social objectives. However, challenges such as bureaucratic hurdles, security concerns, and legal ambiguities hinder effective execution.

To address these challenges and promote energy security, Gómez proposes a new model of public-private co-investments called EMES (Strategic Mexican Companies). This innovative approach aims to leverage private sector expertise and stock market mechanisms to drive strategic investments, thereby propelling Mexico towards a more prosperous and sustainable future.