Baja Investment Hopes Fall Flat

Despite high hopes, new investments in Baja California fell short due to internal conflicts and uncertain federal policies, leading to missed opportunities and competition from neighboring states.

### Unmet Expectations for New Investments in Baja California

Despite high hopes, the anticipated influx of new investments spurred by nearshoring in Baja California over the past year did not materialize and remained as mere projects. According to José Luis Contreras Valenzuela, president of the Association of Industrialists of the Mesa de Otay (AIMO), several internal federal policies have contributed to an environment of conflict, instability, and uncertainty, which hindered the arrival of new investments in the region.

“What we cannot deny is the reality that the internal conflicts and uncertainty generated by many federal policies have inhibited the arrival of new investments to the region,” declared Contreras Valenzuela. He further stated that the growth seen in the region was primarily due to the expansion of existing plants rather than new investments.

Reflecting on last year’s expectations, he mentioned that there was an anticipation of nearly $50 billion in new investments due to nearshoring, which only remained as a project. Instead, some companies have even reduced their workforce. To retain investments, Contreras Valenzuela emphasized the need to strengthen the rule of law and provide greater legal certainty for businesses.

Additionally, Texas and Arizona have emerged as new competitors in attracting investments, offering supportive fiscal policies. Contreras Valenzuela pointed out that this could potentially divert investments that might have stayed in the region.

As the current federal government, under Andrés Manuel López Obrador, leaves office, Contreras Valenzuela highlighted the absence of a formal industrial policy and the need for decrees to provide viability to industrial programs. With Claudia Sheinbaum Pardo’s new administration starting from October 1st and overseeing the renewal of the US-Mexico-Canada Agreement (T-Mec), AIMO’s president stressed the importance of equal conditions between the governments of the three countries.

### Secondary Article: Challenges and Opportunities Facing Baja California’s Industrial Sector

In related news, several factors continue to influence the industrial landscape in Baja California. Despite the struggles with new investments, the region has seen noteworthy developments and challenges:

1. **Government Changes and Trade Stability:** Despite the changing political landscape, José Luis Contreras Valenzuela assured that exports and imports would remain stable. However, there remains a need for policies to strengthen industrial growth and adapt to competition from neighboring states like Texas and Arizona.

2. **Employment in Maquiladoras:** Some maquiladoras in the region have been open to hiring employees with criminal records for certain positions, reflecting a broader effort to integrate diverse sections of the workforce and reduce unemployment.

3. **Enhanced Security Measures:** In an effort to bolster security, surveillance cameras are set to be installed outside maquiladoras in Tijuana. This move is expected to enhance safety for employees and improve overall security conditions around industrial areas.

4. **Decreased Refugee Applications:** The number of people seeking refugee status in Baja California has decreased this year, with only about 900 people initiating the process compared to 4,155 in the previous year. Various factors have contributed to this decline, as reported by the UN Refugee Agency (ACNUR).

5. **Public Health Concerns:** Metamphetamine continues to be the most consumed drug in Tijuana, surpassing others like fentanyl. This ongoing issue underscores the need for increased public health initiatives and substance abuse programs.

6. **Social Movements:** Recently, feminists in Tijuana marched to advocate for the decriminalization of abortion up to 24 weeks. The march, held on the Global Day of Action for Legal and Safe Abortion, highlighted the ongoing fight for women’s rights in the region.

By focusing on these key areas, Baja California can work towards overcoming its current hurdles and fostering a more stable and prosperous industrial environment.