President Claudia Sheinbaum and United States President Donald Trump announced that the proposed duty wouldn’t take effect on Friday after they spoke by telephone on Thursday morning.

“We had a very good call with the president of the United States, Donald Trump. We avoided the tariff increase announced for tomorrow and secured 90 days to build a long-term agreement through dialogue,” Sheinbaum wrote on social media.

On his social media site, Truth Social, Trump said that his call with Sheinbaum was “very successful in that, more and more, we are getting to know and understand each other.”

“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper,” he wrote.

“Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,” Trump said.

Tuvimos una muy buena llamada con el presidente de Estados Unidos, Donald Trump. Evitamos el aumento de aranceles anunciado para mañana y logramos 90 días para construir un acuerdo de largo plazo a partir del diálogo.

Me acompañaron Juan Ramón de la Fuente, secretario de… pic.twitter.com/in3W4eAICN

— Claudia Sheinbaum Pardo (@Claudiashein) July 31, 2025

He also said that “there will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States.”

Status quo maintained; most trade with US is tariff-free 

The “25% fentanyl tariff” Trump referred to is a duty on non-USMCA compliant goods that took effect in March.

Economy Minister Marcelo Ebrard said this week that 84% of Mexico’s trade with its northern neighbor complies with the USMCA and is therefore tariff-free.

U.S. content in vehicles made in Mexico is exempt from the United States’ 25% auto tariff, lowering the effective duty on Mexican cars to 15% on average, according to Ebrard.

It was uncertain whether the 30% duty proposed by Trump would have applied to all imports from Mexico, or just those that don’t comply with the rules of the USMCA, the three-way free trade pact that includes the United States, Mexico and Canada.

The U.S. president didn’t provide any clarity on the issue in his Truth Social post on Thursday morning.

Trump informed Sheinbaum of his plan to impose a 30% tariff on imports from Mexico in a July 11 letter. A common interpretation of his remarks in that letter was that the proposed duty would only apply to non-USMCA compliant products, and would have thus increased the current rate by five percentage points.

In recent days, Sheinbaum expressed confidence that her government would reach an agreement with the Trump administration to stave off the 30% tariff.

Last month, she proposed a “general” or “global” agreement between Mexico and the United States covering trade, security and migration.

It appears that such an agreement is likely to be reached sometime in the next 90 days.

‘We achieved a good agreement’ 

“We achieved a good agreement,” Sheinbaum said at the start of her Thursday morning press conference, held at the later time of 10 a.m. due to her call with Trump.

She said that she spoke to her U.S. counterpart for around 40 minutes, and was accompanied by Ebrard, Foreign Affairs Minister Juan Ramón de la Fuente and Deputy Foreign Affairs Minister for North America Roberto Velasco.

Sheinbaum highlighted that the United States existing tariffs would remain in place and noted that there is a period of 90 days to continue engaging with the U.S. government in order to a establish a “longer-term agreement.”

She said that the deal struck with Trump on Thursday morning is “important” because existing tariffs won’t rise, at least in the short term.

Sheinbaum also said the deal “protects the USMCA” as the majority of Mexico’s trade with the United States will remain tariff-free.

“That is very important,” she said, highlighting that the current 25% tariff — the so-called “fentanyl tariff” — only applies to products made in Mexico that don’t comply with the USMCA.

Sheinbaum said that “within the new trade world order” established by Trump’s protectionist agenda, Mexico has “the best agreement possible.”

“… Investing in Mexico continues to be the best option. We have a very good situation in the face of this new international order,” she said.

” …Our strategy worked,” Sheinbaum said, referring to her government’s trade negotiation strategy, which included a commitment to work to reduce Mexico’s large trade surplus with the United States while cracking down on the production of fentanyl in Mexico and ramping up efforts to stop the drug reaching the U.S.

She said that her government maintained a “cool head” in those negotiations, which were led by Ebrard, who has made frequent trips to Washington since Trump’s second term as president began on Jan. 20.

Mexico News Daily 

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U.S. tariffs on a range of Mexican goods, including 25% levies on steel and aluminum, have made companies wary of investing in Mexican industry and nearshoring. However, Mexico’s auto parts sector is exempt from U.S. tariffs so long as companies comply with regional content requirements outlined in the USMCA free trade agreement.

The USMCA requires automakers to adhere to strict rules of origin. Companies can avoid paying tariffs when exporting in North America if they produce 75% of the value of cars, light trucks and essential auto parts with components from the USMCA region.

This exception has helped Nuevo León to maintain high levels of foreign direct investment (FDI) in the sector, albeit more discreetly. Several companies investing in the state have chosen not to make public investment announcements in recent months, to avoid unwanted attention.

“There are many companies that tell us, ‘I’m going to wait [to make the announcement],’” Emmanuel Loo, the deputy minister of investment and innovation at the state Economy Ministry, told the newspaper El Economista.

“They are new companies that have arrived in the state and are already building and hiring staff… They tell us, ‘I don’t want to say, because of the tariff issue… Hey, I’m investing in Nuevo León. Please don’t put me in the spotlight because they’ll make an example of me later.’”

Some companies have been more successful at adhering to USMCA measures than others. Kia Mexico, for example, uses around 98% regional content.

However, several German car brands that export from Mexico rely heavily on supplies from Europe. Previously, they paid a 2.5% tax for these imports, but many have now been hit with 25% U.S. tariffs, according to Loo.

Nuevo León has recorded higher levels of FDI so far this year than previous year, with US $2.7 billion in the first quarter of 2025, compared to US$2.5 billion in the whole of 2023 and $2.1 billion in 2024.

“We are almost at the same level as [the whole of] last year in FDI,” stated Loo.

“We know this will continue. Yesterday I visited three companies; workers will be contracted for 3,000 jobs. We are still experiencing the effect of nearshoring, but each time it is with greater added value, and creating high-impact jobs.”

The state government reported that since 2021, over 400 investments totaling more than $73 billion have been announced in Nuevo León, many of which are in varying stages of development and may not yet appear in federal records.

With reports from El Economista

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Ensenada, located about an hour south of the border with the United States, is preparing for at least 10 new high-technology multinationals to enter the local market within the next three years, according to Salinas.

Projects include the expansion of the El Sauzal seaport and the construction of an international cargo airport. Infrastructure works will include dredging and the expansion of breakwaters to accommodate deeper-draft vessels, aimed at enhancing the region’s trade routes. 

Earlier this year, the business group Mexican Construction Companies in Ensenada (Comice) announced the 1,000-hectare “Ciudad Jatay” project, which will feature an industrial park, a technology park, housing and services to be developed in five to ten years.

“The goal is to turn Ensenada into a hub for economic development, as we have privileged conditions — two ports, a new airport, binational connectivity, industrial zones and clean energy,” Salinas said during an interview with the newspaper Milenio published on Monday. “All of this is aligned with a strategy we designed over three years ago.”

The city is focusing on attracting capital in three priority sectors — electronics, biotechnology and green energy. Salinas expects Baja California’s strong infrastructure, clean energy, qualified talent and proximity to the United States to attract investors.

The state government is currently working with the Economy Ministry to gain nationwide recognition as a hub of innovation, according to Salinas. 

Obstacles to overcome

According to Salinas, reducing bureaucracy could help boost investment in the region.  

“Five years ago, it took up to 18 months to set up a business; however, today, with support from the local government and working groups, we’ve managed to reduce that to half a year,” said Salinas. “But there’s still work to be done… we had 130 state procedures, and we’ve already reduced that to 70, [now] we need to incorporate artificial intelligence, one-stop shops and online systems.”

 He also cited Ensenada’s problem of talent drain.

“Around 15% of graduates go to other parts of the country or abroad, as most are recruited by the state of California,” said Salinas. “That’s why we need companies that offer better salaries and quality of life.” 

The economic benefit of the works is expected to exceed 12 billion pesos (US $636 million) over the next decade, according to Salinas. 

With reports from Milenio and La Jornada

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The red numbers rose to a record $119.86 billion in 2024, according to national statistics agency INEGI, the result of US $9.94 billion in exports and a whopping US $129.795 billion in imports.

Slowing exports to China helped the deficit to balloon as the value of items shipped from Mexico to China declined for a second consecutive year.

Much of what Mexico imports from China are intermediate goods utilized by Mexican companies to produce final export goods. One example is copper, without which the Mexican auto industry would come to a standstill. 

The inclusion of Chinese parts in products exported to the U.S. makes them incompatible with the existing U.S.-Mexico-Canada free trade agreement (USMCA), meaning they will be subject to 30% tariffs beginning Aug. 1.

Mexico’s reliance on Chinese goods is attributable to the global competitiveness of Chinese parts and components, as well as the low integration of some domestic production chains, for example, televisions and machinery.

WSJ: Sheinbaum administration wants US help to reduce Mexico’s imports from China

U.S. President Donald Trump’s determination to decouple trade with China (the U.S. deficit with China has fallen nearly 30%) will force Mexico to reconsider its own trade relationship with the world’s second-largest economy.

Since Trump’s first term, China’s trade with the U.S. has shrunk to one-third its value, hitting a 23-year low, according to Forbes magazine. In May, China accounted for just 5.89% of all U.S. trade, its lowest monthly percentage since 2002 and down from 17.77% in early 2017.

This dilemma is something Economy Minister Marcelo Ebrard has addressed previously.  

The CEESP, an economic think tank, issued a report explaining how “dependence on Chinese inputs and weak domestic substitutes will limit [Mexico’s] technological development and reinforce a pattern of assembly rather than innovation.”

In November 2024, Ebrard floated the idea of a joint U.S.-Canada-Mexico project to increase manufacturing capacity in North America and reduce reliance on Chinese imports.

Other joint policy proposals included uniform tariffs on Chinese goods and new partnerships to integrate supply chains in key sectors.

With reports from El Economista and Forbes

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Despite the tariff pressure, light vehicle manufacturing in Mexico showed signs of recovery in June after contracting the previous five months, according to national statistics agency INEGI.

Mexico’s auto exports down 6% this year

INEGI reported that Mexican automakers manufactured 361,047 vehicles in June — a record for the month — while exporting 331,517 cars, also a new record for June.

The total number of vehicles assembled in Mexico during the first half of 2025 was 0.5% higher than the figure recorded from January-June 2024, representing the most light vehicles ever produced by Mexico automakers during any January-June period.

Mexico produced 2,006,720 units during the first half of the year, only the second time the domestic auto industry has exceeded the two million mark during a six-month period. The only other time this occurred was in 2019, the year before the COVID pandemic, when Mexican automakers manufactured 2,001,272 light vehicles.

Automakers expect to produce approximately four million units in 2025, according to Alberto Bustamante, director general of the National Agency of Automotive Suppliers (Anapsa). 

General Motors led the way with 436,106 vehicles manufactured during the first six months this year. Nissan followed with 341,530 units and Ford was third with 223,742 cars produced. 

In percentage terms, Toyota’s production rose 55% during the January-June period compared to last year (from 103,264 to 160,282), while KIA Motors’ production rose 15.5% (from 123,850 to 143,080 ). The two Asian carmakers also led the way in June, with their production rising 24.7% and 24.3%, respectively, compared to the same month a year ago.

However, the news is not all good, as cumulative exports and domestic sales remain in negative territory. 

Domestic sales declined by 7,329 to 116,062, a 5.9% drop compared to June 2024. Year-on-year domestic sales for the first half of 2025 were also down by just more than 2,000 vehicles. 

Nissan remains far and away the most popular car on the domestic market with 128,283 vehicles sold during the first six months of the year. General Motors placed second with 94,601 cars sold.

Despite the 14% upturn in light vehicle exports in June, total exports for the first half of 2025 (166,184) lag behind the figure recorded for January-June last year (1,714,794) by 2.83%, or 48,610 units.

This is partly due to a 2.9% drop in exports to the United States, the destination for 79.7%, or 1,327,892 vehicles, of Mexican automotive exports. 

With reports from La Jornada, El Financiero, El CEO and Tu Interfaz de Negocios

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April’s weak exports to the U.S. followed a month of both new and threatened tariffs in March. May saw a nearly full recovery as companies adjusted to new market conditions and Mexican leaders sought to negotiate on tariffs and reassure frazzled investors.

Mexico remains the leading trade partner of the U.S., despite a wide variety of tariffs implemented by U.S. President Donald Trump this year. The trade duties and the uncertainty around their implementation has hurt many U.S. trade partners in recent months.

Trade between Mexico and the United States totaled US $74.5 billion in May, with Mexico contributing 16.2% of global trade with the U.S.

Canada was the second biggest exporter to the U.S., contributing 12.5% of the total, with China following with 5.9%. The U.S.’s other largest trade partners in May were Taiwan, Germany, Japan, Vietnam, South Korea, Ireland and India.

Exports of Mexican goods to the U.S. totaled $46.3 billion, while U.S. exports to Mexico stood at $28.2 billion. This resulted in a trade deficit of $18.2 billion in favor of Mexico, the largest of any U.S. trade partner.

The increase represents a rebound from April, when Mexican exports to the U.S. declined for the first time in 13 months. Mexico exported nearly $41.7 billion in goods and services to the U.S. in April, 2.7% less than April 2024.

Exports from Mexican states

Despite the uncertainty, Mexico’s total exports rose by 3.6% year-on-year in the first quarter of 2025, totaling $133.625 billion, Mexico’s National Institute of Statistics and Geography (INEGI) announced in a press release on Monday.

The border state of Chihuahua dominated exports, contributing 16% of the national total, followed by the states of Coahuila (11.8%), Nuevo León (9.9%), Baja California (9.4%), Tamaulipas (6.4%) and Jalisco (6.3%).

Together, these six states accounted for 59.9% of the total national exports.

The five states with the most significant increase in export value were Yucatán (up 29.3% compared to the same period last year), Chihuahua (27.5%), Colima (26.9%), Zacatecas (25.8%) and Jalisco (25.0%).

With reports from El Universal

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Later in the press conference, the United States government’s “Big Beautiful Bill” and the legal case of Sinaloa Cartel leader Ovidio Guzmán were among the topics that were discussed.

Will the ‘Big Beautiful Bill’ affect nearshoring in Mexico?

A reporter noted that the “Big Beautiful Bill,” which was approved by the U.S. House of Representatives on Thursday, will provide large tax incentives for large companies, making the U.S. a more attractive place for them to invest.

“Could this affect us in nearshoring, in investment in Mexico? the reporter asked.

Economy Minister Marcelo Ebrard fielded the question.

“I would say two things briefly about that possibility,” he said.

“Firstly, it’s too early [to tell]. … We have to evaluate how [the law] will be applied,” Ebrard said.

“But the main idea you raise is: Does the reduction of tax costs on profits in the United States mean that companies will relocate to that country? I would say, well, in accounting terms it could happen, but what matters here is production — that is what is your cost in terms of relative productivity between one country and another?” he said.

Ebrard said that Mexico has a range of “very important advantages” that allows it to be competitive when it comes to attracting investment.

He cited “our productivity,” Mexico’s proximity to the United States and various “logistical advantages.”

“… In production we’re very competitive,” Ebrard said.

He subsequently said that “a system of comparative disadvantages” is being created because “every country” will have to pay a different tariff rate to ship their goods to the United States.

Ebrard noted that the United States has reached a trade deal with Vietnam and asserted that Mexico will have “a 6-to-1 advantage” over the Southeast Asian nation when it comings to exporting to the U.S.

“… Why 6 to 1? Because the average of what was announced yesterday means that for products from Vietnam — which is a competitor of ours — entering the U.S. market will cost them an average [tariff] percentage between 35% and 40%, while for us it will cost an average of 6%,” he said.

Ebrard didn’t specify how he arrived at the 35%-40% tariff figure for Vietnam, which will face a 20% tariff on its exports to the United States and 40% if the goods are transshipped from a third country.

Mexico has a free trade agreement with the United States (and Canada), but Mexican steel, aluminum, cars and goods not covered by the USMCA currently face tariffs when entering the U.S.

Ebrard said that the “system of comparative disadvantages” he spoke about is “starting to be configured” given that the United States has reached new trade deals with Vietnam and the United Kingdom, but he noted that it remains to be seen how it will end up.

“But I’m using yesterday’s agreement [with Vietnam] as a base because it is the first agreement signed with a country with which the United States has a [trade] deficit,” he said.

“… So, [a] 6 to 1 [advantage for Mexico]. Therefore, the final balance is that our advantage will be accentuated, that’s what we are seeing. That’s why I think the [United States’] fiscal package will not affect us,” Ebrard said.

Sheinbaum turns the tables and asks reporters her own questions … about Ovidio Guzmán case

A reporter asked the president her opinion about the case of Ovidio Guzmán López, who, according to court documents filed on Tuesday, intends to plead guilty to drug trafficking charges in the United States.

Guzmán, one of the sons of imprisoned drug lord Joaquín “El Chapo” Guzmán and a leader (or ex-leader) of the “Los Chapitos” faction of the Sinaloa Cartel, is scheduled to attend a plea hearing next Wednesday.

He was extradited to the United States in September 2023 after he was captured in Culiacán, Sinaloa, in January of that year. Jeffrey Lichtman, lawyer for Guzmán López, said in May that his client and the U.S. government had not yet reached a final plea deal, “but hope to in the future.”

That deal has now apparently been reached.

After describing the reporter’s inquiry about the Guzmán case as “a good question,” Sheinbaum declared that she was going to ask a few questions of her own.

“How did the United States government designate organized crime organizations in Mexico?” she asked.

“As terrorists,” came the response from reporters.

“What has the United States government said with relation to terrorist organizations?” Sheinbaum asked.

“That it doesn’t negotiate with terrorists,” a reporter responded.

“And what is it doing?” Sheinbaum asked.

“Negotiating with terrorists,” responded members of the press corps.

Sheinbaum nodded in response, having made a pointed criticism of the United States government via her back-and-forth with reporters.

She subsequently noted that soldiers were killed as a result of the operation to detain Guzmán, and asserted that given that the suspect was extradited to the United States there should be “coordination” between U.S. authorities and the Federal Attorney General’s Office in Mexico.

Her insinuation was that such coordination has been lacking in the case of Ovidio Guzmán López, whose brother, Joaquín Guzmán López, is also in U.S. custody following his arrest last year after he flew into a small airport in New Mexico on a private plane with Sinaloa Cartel leader Ismael “El Mayo” Zambada.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

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The BYD Changzhou, a 200-meter-long roll-on/roll-off ship that flies the flag of the West African country Liberia, docked in the ports of Mazatlán and Lázaro Cárdenas this month, delivering a total of 5,503 vehicles.

The BYD CHANGZHOU, the first vessel from BYD, arrived at the Port of Mazatlán, where the unloading of automobiles began. This important operation marks a clear step toward the future of the automotive industry in the country, helping improve port logistics and positioning Mexico… pic.twitter.com/s5wosiBBkI

— Maritimex (@MaritimexMX) June 16, 2025

BYD has been selling cars in Mexico since 2023, but hadn’t previously brought vehicles to the country on one of its own ships.

In a video filmed at the port in Mazatlán, BYD México president Ray Zou said that the arrival of the company’s Changzhou vessel is not only a “milestone” for BYD, “but also shows how important the Mexican market is for BYD globally.”

“… In the future, BYD will continue to provide more reliable and fancy products to the Mexican market,” he said.

The BYD Changzhou, named after the Jiangsu province city where the company has a plant, is one of four BYD vessels that are currently in service. The company announced the delivery of its fifth vehicle carrier on Saturday, according to the state-owned China Daily.

The BYD Changzhou delivered 2,000 vehicles to the port in Mazatlán, where it arrived on June 6, and 3,503 to the port in Lázaro Cárdenas.

Mauricio Ortiz, general director of the Mazatlán Maritime Terminal, said that the arrival of the ship “reinforces the strategic position of Mazatlán in automotive sector logistics chains.”

Arribo histórico en el Puerto Lázaro Cárdenas: recibimos el buque “BYD CHANGZHOU” con 3,503 vehículos eléctricos.
Consulta la nota completa aquí: https://t.co/JabT0rb6AA#PuertoLázaroCárdenas #BYD #SSA #Ultratug #ASIPONA #MovilidadSostenible pic.twitter.com/E8kHHK97ZB

— PuertoLazaroCardenas (@PtoLazaroCarden) June 13, 2025

Port authorities in Lázaro Cárdenas said that the arrival of BYD’s ship in Mexico represents “not just a logistical milestone, but also the strengthening of the trade relationship with a brand that is transforming the global electric transport panorama.”

BYD México said in a LinkedIn post last week that the company took “a decisive step in its expansion strategy with the arrival of its Changzhou ship to the port of Mazatlán.”

“This event doesn’t just represent a logistical advance but also reaffirms the commitment of the company to strengthen its presence in the entire country and take electric mobility to more regions of Mexico,” BYD said.

The company’s cars currently face a 20% tariff when entering Mexico, but there is a possibility that the duty will increase in the near future. BYD and other Chinese automakers are pursuing an aggressive export strategy and have found a significant number of buyers in Mexico in recent years.

BYD sales in Mexico 

BYD sold 40,000 electric and hybrid vehicles in Mexico last year, according to the company. That figure was 10,000 short of the company’s expectation of 50,000, as mentioned by BYD’s general director in Mexico, Jorge Vallejo, last October. The company is aiming to sell 80,000 vehicles in Mexico this year.

Sales of 40,000 units in 2024 made BYD the 13th best-selling car brand in Mexico, according to the newspaper El Financiero. A total of 69,713 electric and plug-in hybrid (PHEV) vehicles were sold in Mexico last year, according to the Electro Mobility Association, an increase of over 80% compared to 2023. Thus, BYD was No. 1 for sales in the EV/PHEV segment of the auto market, which accounted for around 5% of total car sales in Mexico in 2024.

BYD has some 50 dealerships in Mexico, and in January, Vallejo outlined plans to open 30 more.

In early 2024, the company confirmed that it intended to open a plant in Mexico, but almost one and a half years later, it is uncertain whether it will in fact do so.

FT: China is withholding approval for BYD’s Mexico plant due to tech concerns

The Financial Times reported in March that the Chinese government was delaying approval for BYD to build a plant in Mexico amid concerns that the company’s smart car technology could be accessed by the United States.

President Claudia Sheinbaum said last November that there was “not yet any firm investment project [in Mexico] from any Chinese automotive company,” including BYD.

In April, she described high demand for foreign-made vehicles in Mexico as a “problem.”

“The problem is that we’re importing a lot of vehicles, particularly from Asia, and this is not anything against any Asian country or anything like that,” Sheinbaum said.

She said that her government is seeking to bolster domestic vehicle production so that the majority of vehicles purchased in Mexico are made in Mexico.

It remains to be seen how that objective will affect BYD’s clear aim of selling more electric vehicles in Mexico and thus increasing its share of the overall market for new cars.

Jorge Guajardo, a former Mexican ambassador to China, asserted earlier this year that allowing Chinese vehicles to continue coming into the country with a tariff of just 20% will “put an end to [automotive] production in Mexico.”

In an interview with Mexico News Daily last year, he asserted that Mexico, where applicable, should raise its tariffs on Chinese imports to match those of the United States.

Reuters reported in April that “China ships very few cars to the United States, which imposed a 100% tariff on imported Chinese electric vehicles under the previous administration of President Joe Biden.”

With reports from Cluster Industrial and T21 

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An annual report compiled by the U.N. Conference on Trade and Development (UNCTAD). showed that in 2024 Mexico received nearly US $37 billion in foreign direct investment (FDI) — up from US $36 billion in 2023 — to rank 11th in the world. Despite the increase in FDI last year, Mexico slipped out of the top 10, falling two spots from the No. 9 position it held in 2023.

In contrast, at the global level, FDI last year was down 11% from 2023, reaching less than US $1.5 trillion in 2024. The decline was driven by losses in developed countries, particularly China and parts of Europe. Global FDI in 2023 surpassed US $1.67 trillion, according to UNCTAD.

The downward trend confirms a deepening slowdown in productive capital flows, the UNCTAD report found.

UNCTAD said shrinking investment funds pose acute challenges to developing countries, including Mexico, while warning that uncertainty is affecting global investment. The report indicated that FDI in developing economies was virtually unchanged in 2024 compared to 2023.

“This is not just a downturn — it is a pattern,” UNCTAD Secretary-General Rebeca Grynspan said Thursday.

Whereas foreign investment flows to Latin American and the Caribbean were down 12% last year, UNCTAD reported that “sectoral and country-level gains signal underlying resilience and long-term potential.”

Mexico was second only to Brazil (US $59 billion) in Latin America, thanks to investment in manufacturing and logistics, UNCTAD found. 

Mexico was also sixth among developing economies by project announcements in digital economy sectors, attracting US $29 billion over the past five years.

According to Mexico’s Economy Ministry, FDI flows into Mexico have performed favorably during the last 10 years, with a total amount of US $300 billion during the 2011-2021 period.

The Economy Ministry attributes Mexico’s success in attracting FDI to its strategic geographical position, competitive costs, young and talented population, and the size and strength of its internal market.

The UNCTAD report cautions that macroeconomic indicators point to a slowdown, however. Global GDP growth forecasts have been revised downward since the beginning of the year, while projections for capital formation and trade — crucial for value chain-driven investment — have also weakened.

The report underscores that investment shortfalls are stalling jobs, infrastructure and sustainable development – especially in the least developed and most vulnerable economies. 

“Too many economies are being left behind not for a lack of potential – but because the system still sends capital where it’s easiest, not where it’s needed,” Grynspan said.

The report concludes that the investment landscape in 2024 was “shaped by geopolitical tensions, trade fragmentation and intensifying industrial policy competition.” 

The slowdown in FDI flows is also being driven by policies restricting foreign investment. UNCTAD reported that in the past decade, the number of countries imposing FDI controls, citing national security, increased from 21 to 46.

With reports from El Economista, Reforma and La Jornada

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Green Corridors, a startup company based in Texas, is proposing to build a 265-kilometer-long elevated “guideway” between Laredo, Texas, and Monterrey, Nuevo León, along which autonomous freight-carrying shuttles would run.

United States President Donald Trump issued a presidential permit for the US $10 billion project this month. Green Corridors CEO Mitch Carlson told the Freight Waves publication last week that the next step is to obtain the construction and right-of-way permits needed for the project on both sides of the border.

“We are acquiring the concession agreement for the right-of-way for Highway 1 in the state of Nuevo León,” Carlson told Freight Waves.

“We’re working with the Mexican federal and state government very closely,” he said.

Carlson said he expects that construction of the elevated guideway will be completed in 2031, allowing a testing phase to commence.

The project 

According to the Green Corridors website, the company intends to build a “groundbreaking, sustainable GC-IFTS,” or Green Corridors Intelligent Freight Transport System.

The elevated guideway is slated to connect to two freight terminals in Laredo and two in Monterrey. The size of each of those terminals would be around 100 acres (40.4 hectares/404,000 square meters), according to Carlson.

Freight truck drivers would enter the terminals and drop off their 53-foot dry van trailers, which “would then be loaded onto autonomous diesel-electric hybrid shuttles that travel along a designated path, much like a monorail,” The Wall Street Journal reported.

“When the shuttle arrives at the other end of the guideway, truckers would pick up a trailer and carry the goods farther into the U.S. or Mexico,” the newspaper said.

“We are building it to have a max capacity of 10,000 [trailers] in each direction per day,” Carlson told Freight Waves.

The CEO told The Wall Street Journal that Green Corridors is negotiating with landowners to acquire the land needed to build the terminals. The June 9 permit issued by Trump states that “the permittee is responsible for obtaining any required Federal, State, and local permits, approvals, and authorizations prior to commencing construction activities.”

It also states that the permit “shall expire 5 years from the date of its issuance if the Permittee has not commenced construction of the Border facilities by that date.”

Carlson told Freight Waves that the estimated cost of the GC-IFTS is $6-10 billion. However, he cited a price tag of $10 billion or more in an interview with The Wall Street Journal.

Carlson said that Green Corridors would charge companies a fee to move freight on its elevated guideway. He said he envisions the project as something that would complement the movement of freight by road and railway. Indeed, tractor-trailers and trains will be required to get cargo to terminals in Monterrey and Laredo, and to pick it up and take it to its final destination after it has crossed the border.

The project “requires no public funds or tax dollars” as the GC-IFTS is “funded by private capital,” according to the company’s website.

The Wall Street Journal reported that the project is backed by investors including the Swinbank family office in Houston, Druker Capital in New York and Chang Robotics Fund in Jacksonville, Florida.

Green Corridors appears to be seeking additional investment, saying on its website that it “offers an opportunity to invest in transformational infrastructure that fixes a visible problem at the U.S.’s largest [inland] port.”

The benefits of an elevated, automated corridor to move freight 

Green Corridors says it is “on a mission to improve security and efficiency at the busiest international trade corridor in North America.”

According to a video about the elevated guideway project published on the company’s website, $320 billion worth of goods passes over the border between Laredo, Texas, and Nuevo Laredo, Tamaulipas, annually and 70% of freight is transported by tractor-trailers that make 3.3 million crossings per year.

These commercial vehicles “face unacceptable delays” that are costly and projected to get worse in coming decades, according to Green Corridors.

“Bridge expansion and more resources will not overcome the problem at Port Laredo,” the company asserts. “But Green Corridors’ Intelligent Freight Transport System will.”

In its video, Green Corridors describes its proposed system as “the future of freight” and says it will allow for the “unimpeded flow” of goods, have “unlimited capacity” and operate 24 hours per day every day of the year.

On its website, the company says its project “offers a solution at Port Laredo that will benefit future generations to come by reducing congestion, bypassing gridlocked areas, and increasing border security.”

It also says that the new freight transportation system will:

• Be environmentally friendly, as “our freight shuttles,” powered by a “hybrid propulsion system,” will “reduce emissions by 75%, providing a greener alternative to diesel trucking.”
• Substantially reduce the overall cost of freight transportation “compared to current market options.”
• Include “sustainable inland terminals” that will be equipped with “solar arrays, regenerative cranes, and hybrid power.”
•  Integrate “real-time monitoring, bi-national customs collaboration [and] 100% freight screening” and guarantee the “secure, tamper-proof” transport of goods.

“We can move this freight between Monterrey and Laredo for significantly less cost and less emissions,” Carlson told Freight Waves.

The bigger picture 

Mexico and the United States are each other’s largest trade partner, with two-way trade worth almost $840 billion last year. As export-focused companies continue to relocate to Mexico or expand their existing operations here, demand for freight services to the United States will only increase in coming years.

Truck crossings into Laredo — where large quantities of auto parts, vehicles, appliances and electronics enter the United States — increased 28% in 2024 compared to 2019, according to U.S. government data cited by The Wall Street Journal.

Even though some Mexican products including steel, aluminum and vehicles are currently subject to tariffs when entering the United States, Michigan State University logistics professor Jason Miller told the Journal that he expects trade between the U.S. and Mexico to continue to grow in coming years, especially if U.S. duties on Chinese goods are higher than those on Mexican goods.

Mexico, of course, has a free trade agreement with the United States (and Canada), whereas China does not.

Miller said that U.S. protectionism against China is “going to result in certainly some shifting of production from China to Mexico.”

As it seeks to capitalize on what has been described as a “once-in-a-generation” nearshoring opportunity for Mexico, the Mexican government is actively seeking to attract foreign investment across a range of sectors with its Plan México economic initiative and associated projects.

The elevated guideway Green Corridors is planning to build could allow companies that operate in Mexico and the U.S. to get their goods to consumers — and each other — more quickly and economically while reducing carbon emissions and pressure on border infrastructure.

The project would thus support the high levels of economic integration between Mexico and the United States, which, along with their USMCA partner Canada, operate what has been called a “co-production system,” providing essential inputs to each other that allow final goods to be produced.

With reports from The Wall Street Journal and Freight Waves 

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