Mexico's 2023 Nearshoring Decree

The Center for U.S. and Mexican Law in partnership with Tecnológico de Monterrey and ITAM, are pleased to invite you to the webinar "Mexico's 2023 Nearshoring Decree" presenting a discussion about the recent fiscal incentives introduced by the Mexican government to promote private nearshoring investments.

2023 Mexico’s Nearshoring Decree
November 29, 2023
12 pm Central
Webinar

RSVP

Approved for 1 Hour of Texas CLE Credit

On October 11, 2023, Mexico’s Official Journal issued a decree to boost investments due to the nearshoring momentum happening in Mexico. The decree sets tax incentives for companies that wish to relocate their business or manufacturers in Mexico and focus on ten key sectors of the Mexican economy. The decree became effective on October 12, 2023.

The Mexican government considered the COVID-19 global pandemic and current geopolitical conflicts forcing companies to adjust their processes and optimize operations, to effectively face the challenges that the global economic environment presents as factors to issue the presidential decree.

The decree identified key industrial sectors of the export industry to help Mexico to integrate into global value chains: a) high productivity and growth of GDP; b) exports; c) multiplying effects in sectors that impact economy; and d) increase in demand, due to the increase in exports from Mexico to the U.S. given the predictable reduction in trade from other regions of the world.

The new regulation seeks to promote competitiveness, innovation, and investment in technology, which contributes to employment generation and attracts foreign direct investment.

As to the tax benefits, the decree includes accelerated deduction of investments from 56% to 89% in 2023 and 2024. It also gives a 25% additional deduction for three years for staff training expenses. Since it is a federal decree, it will have a mandatory effect in all Mexican states and municipalities.

The webinar is organized in a partnership between ITAM, the Tecnológico de Monterrey, and the Center for U.S. and Mexican Law of the University of Houston. It will feature experts in the field to provide views about the implementation of this regulation.

The University of Houston Law Center is a Carnegie-designated Tier One public research university and an EEO/AA institution.