Research Library

The Sheinbaum administration recently unveiled its National Strategy for the Electric Sector, aiming to strengthen Mexico’s state-owned companies. In doing so, it may have overlooked key economic, infrastructural, and technological challenges. In a new issue brief, nonresident scholar Rolando Fuentes explores the plan’s potential benefits, risks, and gaps — emphasizing how comprehensive and transparent policies are crucial for building a sustainable, vibrant electricity sector in Mexico.

Nearshoring — the outsourcing of production to another country — would increase manufacturing and further economic development across U.S.-Mexico border areas, but it also raises significant questions about environmental impacts and, ultimately, environmental justice. Both governments should begin drafting and implementing effective transboundary policies that incentivize companies to protect local communities and fragile border ecosystems from a manufacturing surge, writes research scholar Ivonne Cruz.

As Mexico becomes a desirable site for nearshoring, damaging environmental and social impacts on the border region may be exacerbated under the economic growth. A new report by research scholar Ivonne Cruz dissects the relationship between nearshoring’s ecological and socioeconomic risks and offers trade policy recommendations to support sustainable economic development, mitigate potential hazards, and safeguard local communities.

With high entrepreneurship and startup rates, Latino immigrants are key contributors to U.S. economic development. In a new report for the Center for the U.S and Mexico, nonresident fellow Elizabeth Salamanca explains how their skills and expertise are integral to innovative startups that often evolve into binational businesses, operating in both the U.S. and Mexico.

The link from resource endowment to profitability is intimately tied to the full supply chain. In the U.S., concern about market concentration in China is motivating policy intervention to reorient supply chains in the interest of energy and national security. This is not without its obstacles, however. Michelle Michot Foss discusses how new U.S. laws intersect with the challenges of aligning materials supply chains with green energy goals amid political and economic pressures.

Rachel A. Meidl discusses why sustainability requires an approach that includes environmental, social, and economic factors across the entire supply chain spanning the life cycle of energy systems. Sustainability must move beyond a narrow focus on carbon metrics to address broader impacts and drive innovation. As companies emphasize sustainability imperatives, life cycle management will become increasingly important.

Nearshoring is gaining global economic significance, with Mexico poised to capitalize on this trend due to its proximity to the U.S., skilled work force, and other competitive factors. A brief commissioned by the Center for the U.S. and Mexico outlines these advantages and discusses the infrastructural challenges that Mexico must overcome to unlock its nearshoring potential.

Nearshoring offers Mexico a major economic opportunity; however, current policy hindering power expansion, energy transition, and private investment forestalls this prospect. A report by the Center for the U.S. and Mexico on their collaborative workshop series with Tecnológico de Monterrey dissects the power sector’s critical role in nearshoring efforts and offers policy recommendations for a way forward.

As Mexico faces a potential return to single-party rule, its ability to attract foreign direct investment is diminishing, writes fellow David A. Gantz. In this issue brief, he explores a range of factors contributing to Mexico’s adverse investment climate.

Amid U.S. efforts to strengthen supply chains and counterbalance China’s growing influence, Mexico is poised to benefit from “nearshoring,” writes scholar Adrian Duhalt. This brief explores how the Inflation Reduction Act and rising trade tensions between the U.S. and China could help Mexico secure its top trading position with the U.S. for years to come.