In a significant boost for Mexico’s economy, President Claudia Sheinbaum has announced a bold initiative to attract $20 billion in investments from major companies, including Amazon.com Inc. and Woodside Energy Group Ltd. This announcement comes as Sheinbaum seeks to reassure business leaders amid concerns over recent constitutional reforms that could impact democracy and judicial independence.
At a press conference following the US-Mexico CEO Dialogue, Economy Minister Marcelo Ebrard revealed that Woodside is set to invest $10.4 billion in collaboration with the state-owned oil company, Petroleos Mexicanos, to develop a deepwater project in the Gulf of Mexico. Amazon, meanwhile, plans to invest $6 billion by 2026 to enhance its network and digital infrastructure across the country. Additionally, Royal Caribbean Cruises Ltd. is eyeing a $1.5 billion investment in tourism in Quintana Roo, further underscoring Mexico’s potential as a lucrative destination for international businesses.
Addressing approximately 240 leaders from Mexican and international companies, Sheinbaum sought to alleviate fears surrounding proposed judicial reforms, including a controversial new law that allows for the popular election of federal judges. Critics argue these changes may increase risks for investors by consolidating control over the judiciary within Sheinbaum’s Morena party. In response, she asserted, “The president doesn’t want to control the judiciary. What we want is a judiciary free of corruption.”
While the government aims to maintain a 54% stake in energy generation and transmission, Sheinbaum assured investors that there will be established rules for private participation in the remaining 46%. The administration is set to unveil a comprehensive energy plan by year’s end, complete with secondary laws to define private sector engagement in energy projects.
To streamline the investment process, Sheinbaum announced the creation of a digital transformation agency aimed at reducing bureaucracy and facilitating smoother project launches for companies. Emphasizing the importance of cooperation over competition, she called for a strengthened North American free-trade agreement, known as the US-Mexico-Canada Agreement (USMCA), to ensure the three countries work together effectively.
As Mexico continues to navigate the complexities of investment and reform, this $20 billion initiative marks a significant step towards fostering a more favorable business climate in the country.
