Experts Predict Boom in Mexico’s New Special Economic Zones

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special economic zone investment in Mexico
Within five years, Mexico could see investment in special聽economic zones from all over the world. (Mexican Business Web)

Espa帽olMexican and foreign companies have shown interest in investing as much as US $41.5 million in five cities that would be designated as special economic zones within the next five years, Director in charge of SEZs Gerardo Guti茅rrez Candiani, said.

Special economic zones, are areas where legislation differs from the rest of a聽country, often including increased trade, investment and tax breaks.

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Investors have shown most interest in聽L谩zaro C谩rcenas, Salina Cruz, Puerto Chiapas, Isthmus of Tehuantepec and Coatzacoalcos, according to Candini.

He said he sees聽more opportunities than threats in going through with the projects, which could offer an “aggressive and competitive” package and聽legal certainty with聽every chance of attracting investments and聽benefits, such as tax incentives that last up to 80 years.

Candini said he does not see the massive deportation of Mexican immigrants promised by US President-elect Donald Trump as a threat to the聽project. He said he believes Mexicans聽are productive people with skills and education that can help special聽economic zones.

“If human capital returns to Mexico, I see a huge opportunity,” he said. “Many of these people are bilingual, trained, have jobs and are from the south-southeast.”

He also pointed out that this immigration phenomenon is not new to Mexico, as Barack Obama deported 2.8 million Mexicans during his two terms.

“Trump says three million, but a lot of those people are productive and will help the country a lot,” Gutierrez said, and added that the majority of the investments for the EEZs are focused on聽the south of the Mexican territory, so it will not be difficult to find qualified personnel.

As for investments,聽the Isthmus of Tehuantepec has already seen interest from investors. There are聽seven projects there being led by US investors.

In the Port of Chiapas, there are proposals from聽Mexican and Swiss investors, while Spanish and British investors have shown interest in Salina Cruz. In Coatzacoalcos, Italian companies are showing interest, while L谩zaro C谩rdenas has attracted interest from聽the United States and Luxembourg.

 

Though the project is still at an early stage, Coatzacoalcos is the destination receiving the most interest,聽with projects of US $16 million. Following this is Salina Cruz with US $9.9 million, then L谩zaro Cardenas with US $ 9.75 million and Puerto Chiapas with US $5.8 million. There are a total of 48 projects, of which 16 are at聽an advanced stage聽and expected to be ready in five years, according to Guti茅rrez Candini.

As for the tax incentives that will be offered to investors, Gutierrez Candini said聽progress is being made in developing them,聽and that some have already been completed by as much as 90 percent.

Source: El Universal

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