Politics: Sheinbaum unveils a new and better defined Plan Mexico. But is it up to the challenges ahead?
In response to the slowdown in Mexican economic growth coupled with the ups and downs of Donald Trump’s tariff threats, which have been an emotional roller coaster for business interests and society as a whole, President Claudia Sheinbaum has re-launched and strengthened Plan Mexico, her ambitious economic project.
Plan Mexico now comes with 18 programs and specific actions designed to put teeth in the proposal in light of the new panorama. These include strengthening of the automotive industry, food self-sufficiency; energy self-sufficiency; strengthening the domestic market; boosting strategic investments; industrial development; job creation and training; and environmental sustainability.
The plan was well received, especially in the business community, largely because it was the first serious economic policy proposal from the Sheinbaum administration. Despite shortcomings, it represents an important message that Sheinbaum, unlike AMLO, considers economic growth to be of pivotal importance. In her view, the entire Fourth Transformation project, AMLO and Morena’s project to radically transform Mexican society, will be unfeasible if it is not underpinned by economic growth. This is heightened by the necessity to respond to the increasing needs of the population and public finances' being on the verge of a crisis due to the pressure of government spending.
However, Sheinbaum’s plans could be jeopardized by conflicts within Morena and, of course, the ongoing and still undefined tariff disputes with Washington and the possible renegotiation of the USMCA trade treaty with the United States and Canada. In addition, the conflicts within Morena and between Sheinbaum and some of the party’s legislators could call into question the political stability needed to spur economic growth.
Furthermore, while the President clearly understands the need for and is aggressively seeking the support of business circles for her economic plans, the private sector views her as being ambiguous on some key questions that it feels are of upmost importance, and in fact, could determine the viability of Plan México. These include the question of corruption, the Judicial Reform, and more generally, the rule of law and legal certainty, and despite advances, the still complicated public security panorama and the continued presence of organized crime in major areas of the country.
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