The 4 strategic sectors to increase domestic content in Mexico
The four strategic sectors in which Mexico wants to increase domestic content are: electrical-electronics, pharmaceuticals and medical devices, electromobility and semiconductors.
According to the Mexican government, the policy to increase domestic content will be the main driver of growth for Mexican small and medium-sized enterprises (SMEs), as well as a tool to deepen integration with North America by creating strong and sustainable supply chains.
In general, industrial policy is detailed in the National Development Program 2019-2024 and the Sectoral Program for the Economy 2020-2024.
Both programs place special emphasis on the need to increase domestic content in «strategic sectors» and on the development of the country’s most marginalized regions, SMEs, the knowledge industry and government procurement as a tool to promote industrialization.
The objectives of the policy will be achieved through the support given to entrepreneurs through programs such as IMMEX, PROSEC, the Program for Industrial Productivity and Competitiveness (PPCI) and the Program for the Development of the Software Industry (PROSOFT).
In addition, Bancomext provides support as a financing pillar.
Strategic Sectors
The foreign trade policy and the strategies to achieve its objectives are set forth in the National Development Plan and the Sectoral Program for the Economy.
Taking a panoramic view, the objectives of Mexico’s trade policy are to promote foreign trade, defend its commercial interests and negotiate, implement and administer trade agreements.
While insertion in international trade has led to the growth, modernization and diversification of the Mexican economy, Mexico seeks to attract more investment in sectors and regions that have historically benefited less from trade integration.
It seeks to encourage the development of high value-added sectors to promote innovation, the technological transformation of SMEs and insertion into global value chains, as well as to increase the domestic content of export products.
At the same time, Mexico continues to negotiate and improve market access to promote the growth and diversification of its exports.
In Mexico’s foreign trade strategies, women play a key role in promoting growth and reducing poverty.
