### Decline in Investments Due to Judicial Reform and Electoral Processes: Deitac
Investment in the city of Tijuana has seen a significant reduction in recent weeks, attributed to the ongoing reforms of the Federal Judiciary and impending electoral processes, as reported by Carlos Higuera, the treasurer of the Economic and Industrial Development of Tijuana (Deitac).
“We have observed a notable slowdown and decrease. This trend has been evident since the beginning of the year due to several factors. Firstly, the elections in Mexico; secondly, the elections in the United States; and thirdly, the judicial reform process we are undergoing. These elements have collectively discouraged and slowed down foreign investment,” Higuera stated.
Despite this, companies from the UK and Germany have shown interest in investing in Mexico, though they remain cautious, awaiting the outcomes of these significant political changes, especially the U.S. elections. “They are simply waiting to see how these factors settle, such as the U.S. elections, before deciding the right moment to make their investments in Mexico,” Higuera added.
Addressing the potential impact of a possible return of Republican candidate Donald Trump to the U.S. presidency, Higuera emphasized that Mexico could have a substantial advantage over China. “The focus on the Asian market would allow us to realign ourselves and highlight Mexico’s strengths as a productive sector, fostering a beneficial alliance between the two countries, akin to what happened during Trump’s previous tenure,” he explained.
Moreover, Higuera noted that the renegotiation of the USMCA (United States-Mexico-Canada Agreement) will be complex, especially if Trump returns to power, considering his known stance on China. “Even if Trump wins, we expect his focus to remain on countering China, continuing the trajectory he set in 2018,” he concluded.
—
### Secondary Article: Impact of U.S. Politics on Mexican Investments
Recent developments have highlighted the intricate relationship between U.S. politics and Mexican investments, particularly in light of potential policy shifts with the upcoming U.S. elections.
As reported by local sources, the Presidential race in the United States has created a ripple of economic uncertainty across the border. Businesses and investors are monitoring closely, as the outcome could influence trade policies and economic relations significantly. The anticipation is not just limited to the general political atmosphere, but also the potential re-election of Donald Trump, known for his robust trade measures against China and his unique approach to the Mexican-American economic relationship.
Local economic experts assert that while some businesses are holding off investments pending electoral clarity, there is an underlying confidence in Mexico’s strategic position. With the global shift in supply chains, Mexico’s proximity to the United States and favorable trade agreements like the USMCA make it an attractive alternative to Asia for manufacturing and industrial sectors.
However, the continued fluctuation in foreign exchange rates, particularly the rise in the dollar, has also presented challenges for local industries. Construction companies in Tijuana, for example, have reported increased costs and project delays due to the volatile currency market.
As these global and regional dynamics unfold, stakeholders in both countries are bracing for a period of adjustment, with the hope that a stable and mutually beneficial economic environment can be sustained.
For more updates on this evolving story, stay tuned to TJGringo.com.