Gálvez Warns Mexico Could Lose Nearshoring if Morena Wins June Elections

Mexican opposition presidential candidate Xóchitl Gálvez cautioned that Mexico risks losing out on nearshoring opportunities if the ruling Morena party emerges victorious in the June 2 elections. During her speech at the Banking Convention in Acapulco, Gálvez stated, "Six more years of Morena would mean 'bye bye nearshoring.'"

Gálvez, who is trailing significantly behind Morena's candidate Claudia Sheinbaum in polls, outlined five key factors she believes are necessary for Mexico to fully capitalize on nearshoring: rule of law, clean energy, treated and sufficient water supplies, education to cultivate new talent, and improved security amidst escalating cartel-related crime.

Why this matters: The outcome of Mexico's presidential election could have significant implications for the country's ability to attract nearshoring investment and boost economic growth. Gálvez's warnings highlight the importance of addressing critical issues such as infrastructure, security, and the rule of law to remain competitive in the global market.

In her vision for Mexico, Gálvez emphasized the need for the country to become a nation for the middle classes, with a government that ensures certainty, maintains healthy public finances, protects its citizens, promotes economic growth and job creation, and supports small and medium-sized enterprises (SMEs) and entrepreneurs.

Gálvez also suggested that state oil firm Pemex should prioritize its exploration arm and investigate new business opportunities, such as geothermal energy. She noted, "The future of energy is electricity, and the future of electricity is renewable power." Additionally, Gálvez proposed repurposing the scrapped Texcoco airport project to store and process water for Mexico City, which is grappling with water shortages, and establishing a joint customs agency with the U.S. to combat gun and drug trafficking.

In contrast, Morena candidate Claudia Sheinbaum has stated that if elected, her administration would concentrate on water management, renewable energy, and developing areas for nearshoring as part of a plan to boost the country's sustainability. Sheinbaum also pledged to invest in industrial parks, improve freight and passenger train networks, and potentially re-evaluate the military's control of key infrastructure. She emphasized the "enormous potential" of Mexico's trade pact with the United States and Canada while maintaining trade with China.

As the June 2 elections approach, Gálvez's warnings about the potential loss of nearshoring opportunities under a Morena government have added another dimension to the presidential race. With Sheinbaum currently leading in the polls, the outcome of the election could have far-reaching consequences for Mexico's economic future and its ability to attract foreign investment in an increasingly competitive global landscape.

Key Takeaways

• Gálvez warns Morena win could mean "bye bye nearshoring" for Mexico.
• Gálvez outlines 5 key factors for Mexico to capitalize on nearshoring.
• Sheinbaum (Morena) plans to focus on water, renewable energy, and nearshoring.
• Gálvez proposes repurposing Texcoco airport project to address water shortage.
• Election outcome could impact Mexico's economic future and foreign investment.