Tijuana Investment Slowdown

Despite judicial reform and electoral uncertainty in Tijuana, interest from England and Germany persists. US election outcome will determine the timing of foreign investments. Shift in global trade looms.

### Decreasing Investments amid Judicial Reform Uncertainty and Electoral Processes: Deitac

Recent weeks have seen a decline in investments in Tijuana, attributed to the ongoing reform of the Federal Judicial Power in Mexico, according to Carlos Higuera, the treasurer of the Tijuana Economic and Industrial Development Organization (Deitac).

“We have noticed a slowdown and a decrease. Several factors contribute to this trend,” said Higuera. “It has been decelerating since the beginning of this year, largely due to the elections in Mexico, compounded by the upcoming elections in the United States, and the judicial reform process. These factors have discouraged and slowed foreign investment.”

Despite this uncertainty, companies from England and Germany have shown interest in investing in Mexico. However, they are waiting to see how the various changes, especially the US elections, unfold before committing. “They are simply waiting for the factors, like the US elections, to be resolved to determine the best time for their investments in Mexico,” Higuera added.

Regarding the potential impact of a possible return of Republican candidate Donald Trump to the US presidency, Higuera noted that Mexico might gain a substantial advantage over China. “Focusing on Asia could allow us to highlight Mexico’s productive sector once again, fostering a robust alliance between the two countries as was the case during Trump’s previous tenure,” he explained.

Higuera also mentioned the complexities of renegotiating the Mexico-United States-Canada Agreement (USMCA), foreseeing that Trump’s potential presidency would persist with a stance against China. “Even if Trump wins, we anticipate that his focus will continue to be against China, reinforcing the policies he started in 2018,” he concluded.

### Secondary Article: Uncertainty in Global Trade Amidst Political Changes

In light of the uncertainty in Mexico and broader global transitions, international trade and investor confidence remain volatile. The potential political shift in the United States could have significant ramifications for global trade relations, particularly with Mexico.

Economic analysts predict that Trump’s return could prompt a re-evaluation of trade agreements and policies that could either impede or stimulate investment flows depending on the geopolitical landscape. “Global investors are closely watching the political developments in major economies like the US and Mexico as these will determine future investment climates,” said one expert.

Further complicating the scenario are ongoing discussions about the US-China trade war, which has created ripple effects throughout global markets. A shift in focus towards Mexico under a Trump administration may open doors for new trade alliances and economic opportunities between Mexico and other Western countries seeking alternatives to Asian markets.

Meanwhile, Mexico’s own federal judicial reforms pose questions about the stability of its legal and economic frameworks, making it crucial for potential investors to tread carefully as the situation evolves.

As the world navigates these complexities, businesses and governments alike will need to adapt to the changing tides of international relations and economic policies to maintain stability and growth in global trade.