Mexico, Germany Strengthen Strategic Partnership

Summary: Mexico is strengthening its economic partnership with Germany through the promotion of Plan México, positioning the country as a strategic destination for nearshoring investment and manufacturing relocation linked to the United States–Mexico–Canada Agreement. Presented during Hannover Messe 2025, the initiative highlights Mexico’s role in resilient North American supply chains amid shifting global trade dynamics and new U.S. tariff measures. German investment interest is concentrated in advanced manufacturing, digital transformation and Industry 4.0 sectors, involving stakeholders such as regional governments, industrial chambers and bilateral organizations including German-Mexican Chamber of Commerce and Industry.

Mexico reaffirmed its role as a strategic industrial partner for Germany as government officials and business leaders gathered at the Mexican Embassy in Berlin to present Plan México, a national strategy designed to attract foreign investment and accelerate the relocation of global manufacturing operations to the country. More than 100 German business executives, government officials and representatives of industrial chambers attended the event, highlighting Mexico’s competitive advantages as a manufacturing hub connected to the North American market.

The gathering underscored growing economic ties between the two countries as global supply chains shift and companies look to strengthen resilience through nearshoring strategies.

The presentation in Berlin took place in the context of Hannover Messe 2025, one of the world’s most important industrial trade fairs. Mexico significantly expanded its participation this year, with 17 Mexican states represented, according to organizers belonging to the Mexican Association of Ministers of Economic Development A.C. (AMSDE). 

Many of the delegations included governors, economic development ministers and industry leaders who promoted investment opportunities and secured new projects. With Canada serving as the partner country for the 2025 edition, the European industry has been increasingly focused on North America, creating opportunities for Mexico to position itself as a reliable partner within the region.

Several states stood out for their presence at the Mexican pavilion, including Aguascalientes, Chihuahua, Coahuila, Durango, Nuevo Leon, Queretaro, Tlaxcala and Yucatan. The strong representation exemplified the role of regional governments in promoting Mexico internationally and attracting investment into advanced manufacturing and technology sectors.

The Berlin event took place amid a shifting global trade landscape, including the announcement of new US tariffs earlier in the week. Mexico was not included in those measures, a factor that analysts say further strengthens its place as a strategic partner for companies seeking stability within the North American market. Despite global uncertainty, the strong attendance and dialogue between officials and business leaders reflected sustained interest from German companies in expanding operations in Mexico.

The event was organized by the Mexican Embassy in Germany and the Zeitgeist Consulting Group, bringing together representatives from both governments and the private sector. Speakers at the event included officials from both countries who emphasized the importance of strengthening bilateral economic cooperation.

Nearshoring Opportunities Draw German Companies

German companies increasingly consider Mexico as a strategic platform for expanding operations within North America, according to industry leaders. “German companies know that Mexico is a reliable partner and a strategic platform to access the US market,” said Maximilian Gauland, CEO, Zeitgeist Consulting Group. “They are looking to expand their presence in the country and increase the local content of products manufactured in North America, aligned with the benefits of the USMCA,” he said.

Gauland added that Plan México aims to attract investment in sectors including energy, rail infrastructure and consumer goods manufacturing. “Plan México is more than nearshoring,” he said. “It represents industrial vision with a human dimension. efficiency, legal certainty and long-term commitment.”

Germany Remains Mexico’s Top European Business Partner

During his remarks, Berend Diekmann, Head of the Americas Division at Germany’s Federal Ministry for Economic Affairs and Climate highlighted the importance of strengthening economic ties between the two countries amid current geopolitical challenges.

Germany is Mexico’s largest business partner in Europe, while Mexico ranks as Germany’s most important partner in the Americas after the United States, even surpassing trade with Brazil, said Diekman.

He also emphasized the need to deepen transatlantic economic cooperation to improve supply chain resilience and support technological transformation. “German investment in Mexico is particularly strong in sectors such as digital transformation and Industry 4.0 manufacturing,” said Diekmann. 

Beyond trade and investment, education and workforce development play a central role in the bilateral relationship. German institutions such as the Goethe Institute and German schools in Mexico contribute to cultural and academic exchange, strengthening connections between the two countries, said Martin Toscano, President, German-Mexican Chamber of Commerce and Industry (CAMEXA) to MBN. 

In addition, Germany’s dual education model, often implemented through chambers of commerce and private companies, allows students to combine technical training with practical work experience. Programs promoted through organizations such as CAMEXA, help develop skilled labor needed by advanced manufacturing companies.

“This cooperative channel offers a valuable tool for German and local businesses to develop talent,” said Toscano. “Mexico possesses a unique opportunity in terms of human capital: it is the country with the most university graduates in technical engineering careers globally, producing approximately 400,000 new engineers every year.” 

Job Creation Remains Central To Bilateral Agenda

Leaders from the German-Mexican business community say job creation remains a core objective of expanding investment. Private sector investment not only strengthens economic ties but also supports social development in Mexico by generating employment and fostering middle-class growth, said Toscano. 

German companies operating in Mexico have often reinvested and expanded their operations, transforming the country into a regional or global production platform. Industry leaders say continued collaboration between federal and state governments in Mexico will be key to sustaining investment momentum and strengthening long-term trade relations.

“We aim to serve as a liaison for Mexican companies interested in developing business in Germany. Another key agenda item is how CAMEXA can motivate German government authorities to increase their presence and frequency of visits to Mexico to allow the German political and business sectors to better understand the realities of Mexico firsthand, “ said Toscano.