Introduction: Nearshoring Is No Longer an Accident — It’s Becoming Policy

Nearshoring in Mexico is entering a new phase. What began as a market-driven reaction to global supply chain disruptions is now moving toward formal policy design. In late 2025, Mexico’s Chamber of Deputies signaled that it will prioritize reforms to the national productivity and competitiveness framework to better align the country with nearshoring-driven investment.

For executives evaluating expansion, this marks an important shift: nearshoring is no longer treated as a temporary trend, but as a structural economic strategy.

Why Congress Is Revisiting Mexico’s Productivity Law

Mexico’s Law to Promote Sustained Productivity and Competitiveness, enacted in 2015, has remained largely unchanged for a decade. Legislators now argue that the framework no longer reflects global conditions shaped by nearshoring, reshoring pressures, and geopolitical realignment.

The proposed reform seeks to modernize the law to:

• Reflect nearshoring as a long-term economic driver
• Improve coordination across federal, state, and municipal governments
• Link productivity policy more directly to infrastructure, services, and industrial capacity

The objective is clear: convert nearshoring from a circumstantial outcome into a deliberate state policy.

From Concentrated Investment to Balanced Industrial Development

One of the core motivations behind the reform is the uneven geographic distribution of nearshoring investment.

While northern and central states have captured the majority of manufacturing inflows, large parts of southern and central Mexico remain underintegrated into global supply chains. Lawmakers emphasize that without policy intervention, nearshoring risks deepening regional imbalances rather than reducing them.

By updating the productivity law, Congress aims to:

• Channel infrastructure investment into lagging regions
• Encourage diversification beyond core manufacturing hubs
• Align workforce development with future industrial demand

Why This Reform Matters for Foreign Investors

For international companies, the reform sends an important signal: Mexico intends to compete on structure, not improvisation.

A clearer legal framework around productivity and competitiveness helps investors by:

• Improving policy predictability
• Clarifying the government’s nearshoring priorities
• Reducing execution risk across jurisdictions

In practical terms, companies planning manufacturing, logistics, or supplier operations gain greater visibility into how Mexico intends to support nearshoring over the next decade.

Nearshoring as Policy, Not Just Market Momentum

Legislators involved in the reform stress that nearshoring should not remain a passive outcome of external shocks, such as tariffs or geopolitical tensions. Instead, it must be actively governed, supported by:

• Public infrastructure investment
• Institutional coordination
• Regulatory modernization
• Productivity-focused incentives

This represents a conceptual shift: nearshoring becomes part of Mexico’s industrial policy architecture, not merely a side effect of global trade disruption.

What the Reform Changes — At a Glance

The legislative proposal focuses on updating Article 8 of the law, expanding its scope to explicitly address:

• Productivity strategies linked to global value chains
• Competitiveness in the context of relocation and regionalization
• Public policy alignment across economic development, infrastructure, and labor

While the reform does not create immediate incentives, it lays the legal groundwork for future programs tied directly to nearshoring execution.

Conclusion: A Signal of Strategic Intent

Mexico’s decision to prioritize productivity reform reflects a broader recognition: nearshoring will shape the country’s economic trajectory well beyond 2026.

For executives, the message is subtle but important. Mexico is signaling that it wants nearshoring to be structured, coordinated, and scalable — not accidental. Whether this ambition translates into execution will depend on implementation, but the legislative direction is now clearly set.

FAQ – Nearshoring Policy Reform in Mexico

Why is Mexico reforming its productivity law now?

Because the existing framework predates nearshoring and no longer reflects global supply chain restructuring.

Does this reform create direct incentives for companies?

Not immediately. It establishes a legal foundation for future productivity and competitiveness programs.

Which regions stand to benefit most?

The reform explicitly aims to support regions beyond Mexico’s traditional northern and central manufacturing hubs.

Is nearshoring now official government policy?

The reform signals a shift toward treating nearshoring as a strategic state objective rather than a temporary trend.

Why should foreign investors care?

Clearer policy frameworks reduce execution risk and improve long-term planning certainty for expansion projects.