Regarding policies for production transformation, Mexico has implemented Plan México 2024‑2030, which seeks to transform the country’s production model by increasing national value added, fostering regional development, strengthening science and technology, accelerating the energy transition and improving infrastructure. Its goals include making Mexico the world’s 10th largest economy by 2030, keeping investment levels above 25% of GDP, creating 1.5 million jobs in strategic sectors, increasing national content in global value chains by 15% and promoting sustainable investments. The federal government, development banks, sectoral institutions and subnational governments are involved, with implementation until 2030.
Regarding public financing mechanisms for production transformation, Mexico currently uses a combination of fiscal and financial schemes. These include tax benefits, such as a 100% income tax reduction during the first three years of a company’s operation within the Polos de Desarrollo para el Bienestar del Istmo de Tehuantepec and Polos Industriales del Bienestar Progreso I y Mérida I in Yucatán, followed by a 50% to 90% reduction for the next three years, depending on employment levels. Additionally, there is an immediate 100% deduction allowed for investments in fixed assets. These measures are targeted at strategic sectors such as electrical and electronics, pharmaceuticals, automotive and agro‑industry. They aim to promote investment, innovation and formal employment. In terms of expenditure-based incentives, an additional deduction of 25% of the increase in expenditure on worker training is allowed, as well as another deduction of 25% of the increase in expenditure on innovation during the fiscal year. The country’s national development banks are also actively involved in financing production transformation. They include Nacional Financiera, Banco Nacional de Comercio Exterior, Sociedad Hipotecaria Federal, FIRA and Banobras. These institutions mainly provide direct loans, credit through financial intermediaries, guarantees and sustainable bond issuance. Their support focuses on sectors such as industry, foreign trade, affordable housing and sustainable infrastructure, and agriculture. The national development banks mobilise resources worth USD 1-5 billion, aligned with the National Development Plan 2025‑2030, with the aim of promoting competitiveness, inclusion and sustainability.
In terms of international partnerships for production transformation, Mexico strengthened its Comité Nacional para la Agenda 2030 by engaging in the United Nations Partnership Accelerator, which maps and promotes multistakeholder international alliances to foster industrial innovation, energy transition and sustainable infrastructure aligned with the Sustainable Development Goals. In 2025, Mexico and the European Union (EU) concluded political negotiations to modernise the EU‑Mexico Global Agreement, establishing an ambitious framework to deepen political dialogue, co‑operation and economic relations. This updated agreement aims to create new economic opportunities by boosting trade and supporting the green and digital transitions for both partners. In addition, the United States-Mexico-Canada Agreement incorporates economic and environmental commitments that promote innovation and sustainability in the region.