Mexico seeks to stay in the game

By Aliza Kempner

Mexico’s export industry is learning to stay current. With competition growing from other low-cost locations and the lower house of Mexico’s congress approving President Enrique Peña Nieto’s proposal to eliminate a range of deductions and allowances benefiting factories, the companies that use these factories are trying to get involved in design and development.  

Successfully staying in the game could allow the Mexican companies to hold onto American investment in their products as the United States looks closer to home in response to rising costs in China. The Economists examines the context surrounding these departures from the tax policies of the past fifty years.