Mexico’s new government mulls tax incentives in bid to lure foreign companies

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The Mexican government is assessing how to spark more investment as companies look to move supply chains closer to their main market

Mexico is considering tax credits to attract foreign firms to invest and produce domestically, targeted at electric vehicle , semiconductor, rare earth minerals, battery and electronics sectors, a top Mexican trade official said in an interview.

Rosendo said the incentives would apply to companies from any country interested in investing in Mexico, including China. “We are analyzing these practices to standardize what the United States and Canada are doing with Chinese investment or with Chinese imports.” U.S. Republican presidential candidate Donald Trump has warned he would impose new tariffs to prevent Chinese automakers from building cars in Mexico and exporting them to the United States.

“We understand that there is an issue of national security and the United States will have to understand that our discussions are also discussions about maintaining Mexican sovereignty,” Rosendo said.

 

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