Will Trump’s ‘Big Beautiful Bill’ hurt nearshoring in Mexico? Thursday’s mañanera recapped

Much of President Claudia Sheinbaum’s Thursday greeting property league was taken up by concern announcements from 4 Mexican pharmaceutical companies.

Later successful the property conference, the United States government’s “Big Beautiful Bill” and the ineligible lawsuit of Sinaloa Cartel person Ovidio Guzmán were among the topics that were discussed.

Will the ‘Big Beautiful Bill’ impact nearshoring successful Mexico?

A newsman noted that the “Big Beautiful Bill,” which was approved by the U.S. House of Representatives connected Thursday, volition supply ample taxation incentives for ample companies, making the U.S. a much charismatic spot for them to invest.

“Could this impact america successful nearshoring, successful concern successful Mexico? the newsman asked.

Economy Minister Marcelo Ebrard fielded the question.

“I would accidental 2 things concisely astir that possibility,” helium said.

Ebrard suggested that the the caller U.S. fiscal measure is improbable to wounded Mexico’s quality to gully planetary investment. (Presidencia)

“Firstly, it’s excessively aboriginal [to tell]. … We person to measure however [the law] volition beryllium applied,” Ebrard said.

“But the main thought you rise is: Does the simplification of taxation costs connected profits successful the United States mean that companies volition relocate to that country? I would say, well, successful accounting presumption it could happen, but what matters present is accumulation — that is what is your outgo successful presumption of comparative productivity betwixt 1 state and another?” helium said.

Ebrard said that Mexico has a scope of “very important advantages” that allows it to beryllium competitory erstwhile it comes to attracting investment.

He cited “our productivity,” Mexico’s proximity to the United States and assorted “logistical advantages.”

“… In accumulation we’re precise competitive,” Ebrard said.

He subsequently said that “a strategy of comparative disadvantages” is being created due to the fact that “every country” volition person to wage a antithetic tariff complaint to vessel their goods to the United States.

Ebrard cited Mexico’s productivity, determination and unnamed logistical advantages arsenic reasons that overseas companies volition support mounting up store successful Mexico. (Audi México)

Ebrard noted that the United States has reached a commercialized woody with Vietnam and asserted that Mexico volition person “a 6-to-1 advantage” implicit the Southeast Asian federation erstwhile it comings to exporting to the U.S.

“… Why 6 to 1? Because the mean of what was announced yesterday means that for products from Vietnam — which is simply a rival of ours — entering the U.S. marketplace volition outgo them an mean [tariff] percent betwixt 35% and 40%, portion for america it volition outgo an mean of 6%,” helium said.

Ebrard didn’t specify however helium arrived astatine the 35%-40% tariff fig for Vietnam, which volition look a 20% tariff connected its exports to the United States and 40% if the goods are transshipped from a 3rd country.

Mexico has a escaped commercialized statement with the United States (and Canada), but Mexican steel, aluminum, cars and goods not covered by the USMCA presently look tariffs erstwhile entering the U.S.

Ebrard said that the “system of comparative disadvantages” helium spoke astir is “starting to beryllium configured” fixed that the United States has reached caller commercialized deals with Vietnam and the United Kingdom, but helium noted that it remains to beryllium seen however it volition extremity up.

“But I’m utilizing yesterday’s statement [with Vietnam] arsenic a basal due to the fact that it is the archetypal statement signed with a state with which the United States has a [trade] deficit,” helium said.

“… So, [a] 6 to 1 [advantage for Mexico]. Therefore, the last equilibrium is that our vantage volition beryllium accentuated, that’s what we are seeing. That’s wherefore I deliberation the [United States’] fiscal bundle volition not impact us,” Ebrard said.

Sheinbaum turns the tables and asks reporters her ain questions … astir Ovidio Guzmán case

A newsman asked the president her sentiment astir the lawsuit of Ovidio Guzmán López, who, according to tribunal documents filed connected Tuesday, intends to plead blameworthy to cause trafficking charges successful the United States.

Guzmán, 1 of the sons of imprisoned cause lord Joaquín “El Chapo” Guzmán and a person (or ex-leader) of the “Los Chapitos” faction of the Sinaloa Cartel, is scheduled to be a plea proceeding adjacent Wednesday.

Ovidio Guzmán is readying to blameworthy to cause trafficking, according to U.S. tribunal documents filed this week. (Courtesy/Cuartoscuro)

He was extradited to the United States successful September 2023 aft helium was captured successful Culiacán, Sinaloa, successful January of that year. Jeffrey Lichtman, lawyer for Guzmán López, said successful May that his lawsuit and the U.S. authorities had not yet reached a last plea deal, “but anticipation to successful the future.”

That woody has present seemingly been reached.

After describing the reporter’s enquiry astir the Guzmán lawsuit arsenic “a bully question,” Sheinbaum declared that she was going to inquire a fewer questions of her own.

“How did the United States authorities designate organized transgression organizations successful Mexico?” she asked.

“As terrorists,” came the effect from reporters.

“What has the United States authorities said with narration to violent organizations?” Sheinbaum asked.

“That it doesn’t negociate with terrorists,” a newsman responded.

“And what is it doing?” Sheinbaum asked.

“Negotiating with terrorists,” responded members of the property corps.

Sheinbaum nodded successful response, having made a pointed disapproval of the United States authorities via her back-and-forth with reporters.

A small assemblage call-and-response helped Sheinbaum marque her constituent without saying thing undiplomatic. (Gabriel Monroy/Presidencia)

She subsequently noted that soldiers were killed arsenic a effect of the cognition to detain Guzmán, and asserted that fixed that the fishy was extradited to the United States determination should beryllium “coordination” betwixt U.S. authorities and the Federal Attorney General’s Office successful Mexico.

Her insinuation was that specified coordination has been lacking successful the lawsuit of Ovidio Guzmán López, whose brother, Joaquín Guzmán López, is besides successful U.S. custody pursuing his apprehension past twelvemonth aft helium flew into a tiny airdrome successful New Mexico connected a backstage level with Sinaloa Cartel person Ismael “El Mayo” Zambada.

By Mexico News Daily main unit writer Peter Davies ([email protected])