Latest news with #PlanMexico
Business of Fashion
05-05-2025
- Business
- Business of Fashion
Unilever to Invest $1.5 Billion in Mexico, Including New Factory
Consumer goods company Unilever said on Friday that it will invest $30 billion pesos ($1.5 billion) in Mexico between 2025 and 2028 to increase its production capacity. The investment, which was announced at Mexican President Claudia Sheinbaum's daily morning press conference, will generate 1,200 new jobs, according to a company executive. It includes 8 billion pesos for a new factory in the northern Mexican state of Nuevo Leon, which will specialise in beauty products and personal care. Unilever's announcement comes as Sheinbaum is making a major push for her 'Plan Mexico' initiative to increase investment in Mexico by domestic and foreign companies. Walmart's Mexico unit and Netflix have also announced major investments in Mexico in recent months. By Ana Isabel Martinez and Emily Green; Edited by Stephen Eisenhammer and Sarah Morland Learn more: Unilever Sales Rise 3% on Demand For Premium Products The European consumer goods giant beat expectations in its first-quarter earnings, citing strong demand and successful price increases.
Newsweek
01-05-2025
- Business
- Newsweek
Mexico Expands Port in Cartel Territory, Courting China Amid Tariff Fears
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. As the United States tightens its trade posture under President Donald Trump, Mexico is making a bold infrastructure play with geopolitical and economic implications. President Claudia Sheinbaum is overseeing a major expansion of the Port of Manzanillo—Mexico's largest and most strategic seaport—in a bid to transform the country into Latin America's leading maritime hub and a potential cornerstone of U.S. supply chains. The project, dubbed "Nuevo Manzanillo," is part of Sheinbaum's "Plan Mexico," designed to defy an International Monetary Fund forecast projecting a 0.3 percent economic contraction this year amid heightened U.S. tariffs. Why It Matters Since returning to office, Trump has reintroduced sweeping tariffs under a new doctrine of "reciprocal trade." While most of those reciprocal tariffs are currently in the middle of a 90-day "pause," a 10 percent global baseline tariff and a 25 percent duty on imported automobiles and auto parts are in effect. Major trading partners like Canada and the European Union were hit hard, but Mexico has — at least so far — been largely spared, thanks to months of quiet negotiations with the White House by Sheinbaum's team. What to Know While Mexico has so far avoided the brunt of Trump's renewed tariff blitz, the threat remains ever-present. His isolationist tariff doctrine has already hit other major U.S. trade partners with sweeping duties on automobiles, steel and general imports. Mexico's current exemption is more of a temporary reprieve than a guarantee—one that could vanish in a single post or policy shift. "There are no additional tariffs on Mexico, and that is good for the country," President Sheinbaum said, crediting "the good relationship we have constructed with the U.S. government." But behind that diplomacy lies a clear subtext: Mexico is preparing for a world in which it can no longer rely on U.S. stability. A recent satellite image of the Port of Manzanillo, Mexico's largest and busiest seaport, showing the existing terminal infrastructure ahead of a major expansion that aims to quadruple its capacity by 2030. A recent satellite image of the Port of Manzanillo, Mexico's largest and busiest seaport, showing the existing terminal infrastructure ahead of a major expansion that aims to quadruple its capacity by 2030. MAXAR TECHNOLOGIES Already Mexico's busiest port and the third largest in Latin America, Manzanillo handled approximately 3.7 million containers in 2023. The expansion will quadruple its footprint from 1,112 acres (450 hectares) to 4,645 acres (1,880 hectares), adding four specialized terminals for containers, hydrocarbons, general cargo, and storage. The project, situated on the Pacific Ocean south of Puerto Vallarta, also includes a thermoelectric plant and six electric cranes, each with a 143,000-pound (65-ton) capacity, to increase efficiency. The Mexican Navy, which is overseeing the development, says it will incorporate solar and wind power to minimize environmental impact. Officials aim to boost capacity to 10 million containers annually by 2030—positioning Manzanillo as a Pacific rival to the Port of Los Angeles, which processed 8.6 million containers last year. Forging Closer Ties With China The expansion of the Port of Manzanillo is a central piece of Sheinbaum's long-term strategy—not just to handle redirected trade flows, but to build durable, alternative trade routes. Optimists see it as a win-win for Mexico and the U.S. "Mexico will emerge as an even closer and more strategic trade partner of the United States," said Ram Ben Tzion, CEO of the digital supply chain firm Publican. "And as such will become an alternative to many Chinese manufacturing capacities." He added, "If De Minimis is canceled for Chinese goods in the near future, this process will accelerate exponentially." The "de minimis loophole," which allows packages to enter the U.S. without duties if they're valued at $800 or less and is heavily leveraged by Chinese e-commerce brands like Temu and Shein, is set to expire on Friday. Mexico's President Claudia Sheinbaum speaks during her daily press conference at Palacio Nacional in Mexico City on March 27, 2025. Mexico's President Claudia Sheinbaum speaks during her daily press conference at Palacio Nacional in Mexico City on March 27, 2025. Photo by SERGIO MORALES/AFP via Getty Images But not everyone sees the port expansion as a strategic masterstroke. Critics warn it could create new risks—for trade, security, and even relations with Washington. The decision to push ahead with the multibillion-dollar project signals a broader pivot away from reliance on U.S. trade stability, said Todd Belt, director of the political management program at George Washington University. "The issue is that [Trump] has followed through with tariffs, which has created a lot of anxiety," he said. Sheinbaum is hedging her bets. Her administration has launched an 18-point industrial policy to strengthen domestic production in key sectors like auto parts, pharmaceuticals and agriculture. "We will announce a comprehensive program, not a tit-for-tat on tariffs," she said earlier this month. Part of the calculus also involves China. "Mexico can, and likely will, be a big winner in the decoupling process we're witnessing," said Tzion, of Publican. "Tariffs and trade are only one element of a broader power struggle for global dominance between the U.S. and China. Mexico will be a key ally and asset to the U.S." In 2023, trade between Mexico and China totaled over $100 billion, making China Mexico's second-largest trading partner after the United States. But others argue that growing trade with China—especially through a vastly expanded port a straight shot across the Pacific—comes with consequences. "The port expansion is a double threat," warned Arturo McFields, a former diplomat and contributor to The Hill. "It would increase trade with China and open the door for more fentanyl-related chemicals coming from Beijing." McFields pointed to Manzanillo's location in Colima, a state with a strong Sinaloa Cartel presence. He cited the December 2024 seizure of 25 tons of drug precursors at the port and asked, "How many tons of precursors fail to be seized and end up reaching their final destination?" The Port's most recent expansions include a new Specialized Container Terminal and a Multi-Purpose Terminal. These terminals feature capacities of 13.6 million tons and 2.46 million tons, respectively. The Port's most recent expansions include a new Specialized Container Terminal and a Multi-Purpose Terminal. These terminals feature capacities of 13.6 million tons and 2.46 million tons, respectively. SSA Mexico Tzion pushed back on these concerns. "The assumption that a bigger port equals more illicit trade, and specifically more fentanyl, is far from true," he said. "Modern trade infrastructure, including advanced customs clearance and digital vetting technologies, can enable both higher trade capacity and better security." Economic analysts also raise flags. Belt warned that the strategy could backfire if Mexico ends up triggering U.S. retaliation. "If more goods are routed through Mexico and then hit with tariffs when entering the U.S., that adds cost and complexity," he said. "Those goods could become more expensive for American consumers, even though they're not coming directly from China." What People Are Saying Michael Shifter, former president of the Inter-American Dialogue, a think-tank focused on Western Hemisphere affairs, told Newsweek: "No matter what Sheinbaum does to accommodate Trump... it never seems to be enough." Julieta Juarez Ochoa, the port's commercialization manager, told Reuters: "We don't see any real impact [of the U.S. tariffs], and we don't foresee a significant impact." What Happens Next The port expansion is scheduled for completion by the end of Sheinbaum's term in 2030.
Yahoo
29-04-2025
- Politics
- Yahoo
Opinion - Mexico's port expansion is a win for China and fentanyl trafficking
Ports are power, and Mexico has announced a massive plan to invest in Manzanillo — its largest port infrastructure and the third-most important port in Latin America. The expansion represents a double threat to Mexico's relationship with the U.S., because it would increase trade with China and opens the door for greater fentanyl-related chemicals coming from Beijing. China has deployed and developed its own technology and trade across America's backyard in a highly strategic manner. It already has a strong presence and power in ports of the Caribbean (Bahamas), South America (Peru), Central America (Panama) and North America (Mexico). According to the Drug Enforcement Agency, there is a long history of alliances between drug trafficking organizations in the Mexican state of Colima, a region where the Sinaloa Cartel operates and has access to the Port of Manzanillo — strategically important infrastructure, due to its location on the central Pacific coast and its high volume of maritime traffic. The Port of Manzanillo is located just south of the rival stronghold of the Jalisco Cartel, which, according to the DEA, increases tensions between the two main Mexican cartels. Numerous trucking companies collaborate with the Sinaloa Cartel to transport illicit drugs and precursor chemicals essential for producing fentanyl and methamphetamines. The U.S. government has stated that the Chinese government is behind a powerful precursor chemical industry used by cartels to produce the drugs, which are then brought into America. In December, Mexican authorities seized a shipment containing 25 tons of drug precursors at the port of Manzanillo — a quantity sufficient to produce thousands of doses of fentanyl that were heading for the U.S. How many tons of precursors fail to be seized and end up reaching their final destination? China's regime is on a multifaceted mission. Ports offer both greater geopolitical power and trade supremacy. China has been for many years increasing its investments in the port sector of Mexico, the main trading partner of the U.S. As part of Plan Mexico, President Claudia Sheinbaum's government is moving forward with an expansion project in Manzanillo Port, where Chinese technologies already handle sensitive and selective areas. Companies such as the Hong Kong-based Hutchinson have a strong presence in key ports of Veracruz, Michoacan, Ensenada and Manzanillo. The Chinese Communist regime is 9,000 miles away from Mexico, yet it has taken over these important ports, while the U.S. has little to no presence. This dangerous aggregation of power needs to be reviewed and reversed. China is not merely seeking to do lucrative business and flood the U.S. market with low-quality products. It also wants more power, to improve connectivity with Mexico, increase handling of sensitive information and strengthen its nefarious Belt-and-Road Initiative. China represents a commercial, geopolitical, security and drug-trafficking threat to America. The Trump administration has put its finger on the wound, noting that China is behind the subsidy and support of fentanyl precursors coming to the U.S., and is thus responsible for taking thousands of American lives. President Trump has had extraordinary success in Panama, restoring and reinforcing American military presence, cooperation and trade. He persuaded Panama to end its participation in the Belt-and-Road Initiative and strengthen its relationship with the U.S. Something similar must be done in Mexico, considering the strategic importance of this nation. This is an unparalleled moment to promote a comprehensive strategy to regain U.S. presence and power in the Americas; as President Ronald Reagan once said, 'No area of the world should have higher priority than the place where we live, the Western Hemisphere.' Arturo McFields is an exiled journalist, former Nicaraguan ambassador to the Organization of American States, and a former member of the Norwegian Peace Corps. He is an alumnus of the National Defense University's Security and Defense Seminar and the Harvard Leadership course. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
29-04-2025
- Politics
- The Hill
Mexico's port expansion is a win for China and fentanyl trafficking
Ports are power, and Mexico has announced a massive plan to invest in Manzanillo — its largest port infrastructure and the third-most important port in Latin America. The expansion represents a double threat to Mexico's relationship with the U.S., because it would increase trade with China and opens the door for greater fentanyl-related chemicals coming from Beijing. China has deployed and developed its own technology and trade across America's backyard in a highly strategic manner. It already has a strong presence and power in ports of the Caribbean (Bahamas), South America (Peru), Central America (Panama) and North America (Mexico). According to the Drug Enforcement Agency, there is a long history of alliances between drug trafficking organizations in the Mexican state of Colima, a region where the Sinaloa Cartel operates and has access to the Port of Manzanillo — strategically important infrastructure, due to its location on the central Pacific coast and its high volume of maritime traffic. The Port of Manzanillo is located just south of the rival stronghold of the Jalisco Cartel, which, according to the DEA, increases tensions between the two main Mexican cartels. Numerous trucking companies collaborate with the Sinaloa Cartel to transport illicit drugs and precursor chemicals essential for producing fentanyl and methamphetamines. The U.S. government has stated that the Chinese government is behind a powerful precursor chemical industry used by cartels to produce the drugs, which are then brought into America. In December, Mexican authorities seized a shipment containing 25 tons of drug precursors at the port of Manzanillo — a quantity sufficient to produce thousands of doses of fentanyl that were heading for the U.S. How many tons of precursors fail to be seized and end up reaching their final destination? China's regime is on a multifaceted mission. Ports offer both greater geopolitical power and trade supremacy. China has been for many years increasing its investments in the port sector of Mexico, the main trading partner of the U.S. As part of Plan Mexico, President Claudia Sheinbaum's government is moving forward with an expansion project in Manzanillo Port, where Chinese technologies already handle sensitive and selective areas. Companies such as the Hong Kong-based Hutchinson have a strong presence in key ports of Veracruz, Michoacan, Ensenada and Manzanillo. The Chinese Communist regime is 9,000 miles away from Mexico, yet it has taken over these important ports, while the U.S. has little to no presence. This dangerous aggregation of power needs to be reviewed and reversed. China is not merely seeking to do lucrative business and flood the U.S. market with low-quality products. It also wants more power, to improve connectivity with Mexico, increase handling of sensitive information and strengthen its nefarious Belt-and-Road Initiative. China represents a commercial, geopolitical, security and drug-trafficking threat to America. The Trump administration has put its finger on the wound, noting that China is behind the subsidy and support of fentanyl precursors coming to the U.S., and is thus responsible for taking thousands of American lives. President Trump has had extraordinary success in Panama, restoring and reinforcing American military presence, cooperation and trade. He persuaded Panama to end its participation in the Belt-and-Road Initiative and strengthen its relationship with the U.S. Something similar must be done in Mexico, considering the strategic importance of this nation. This is an unparalleled moment to promote a comprehensive strategy to regain U.S. presence and power in the Americas; as President Ronald Reagan once said, 'No area of the world should have higher priority than the place where we live, the Western Hemisphere.'
Yahoo
25-04-2025
- Business
- Yahoo
Mexico expands its largest port as it bets on global trade despite Trump's tariffs
By Diego Delgado MANZANILLO, Mexico (Reuters) -A massive expansion of Mexico's largest seaport is under way as Mexican authorities bet on positive economic growth and the strength of global trade despite the gloomy outlook sparked by U.S. President Donald Trump's trade wars. The Mexican government aims to transform the Port of Manzanillo on Mexico's Pacific Coast into the busiest seaport in Latin America, capable of processing some 10 million 20-foot (6.1-meter) containers, according to the Mexican Navy, which runs the facility. It is already Mexico's largest port and the third largest in Latin America, handling nearly 4 million 20-foot containers in 2024. The multibillion dollar port expansion is one of Mexican President Claudia Sheinbaum's major infrastructure projects. The investment is part of Mexico's efforts to defy an economic downturn as Trump's trade wars have created widespread financial uncertainty. Earlier this week, the International Monetary Fund slashed its growth forecasts for most countries. That included Mexico, which the IMF predicted will have a 0.3% contraction in economic growth for 2025 as U.S. tariffs bite into exports. Sheinbaum disputed the IMF forecast, saying that public investment would prevent the economy from contracting and touted her government's "Plan Mexico," an effort to boost domestic industry. The success of this plan rests, in part, on the modernization of the country's ports, such as Manzanillo, according to a government document published earlier this month. In Manzanillo, the U.S. tariffs have not slowed trade, according to Julieta Juarez Ochoa, the port's commercialization manager. She said the majority of imports arriving at Manzanillo come from Asia and are largely used in domestic manufacturing. "We don't see any real impact (of the U.S. tariffs), and we don't foresee a significant impact," she said. The expansion will boost Manzanillo's capacity to handle containerized cargo and hydrocarbon products, she said. It is slated to be finished by the end of Sheinbaum's term in 2030, she added.
