San Luis Potosí, Mexico, continues strengthening its position as a leader in producing 100% electric vehicles, thanks to significant investments and the ongoing expansion of BMW Group’s manufacturing plant. The support provided by the state government has been instrumental in fostering sustainable development, attracting more global investments, and reinforcing the region’s status as a central hub for the automotive industry. These efforts are elevating the state’s international standing in electromobility and improving local families’ quality of life by generating better employment opportunities. With these advancements, electric vehicle production in San Luis Potosí is becoming a defining factor in the state’s economic and industrial development.

This commitment to innovation and growth was reaffirmed by Jesús Salvador González Martínez, head of the Secretariat of Economic Development (Sedeco), during a recent visit to the BMW plant. He closely monitored the progress of the new Battery Production Center, a key component in integrating the automaker’s cutting-edge “Neue Klasse” architecture. This new vehicle platform is set to revolutionize BMW’s electric mobility strategy, aligning with the economic vision of Governor Ricardo Gallardo Cardona. The first production of vehicles based on this architecture is expected to begin in 2027, further strengthening electric vehicle production in San Luis Potosí.

San Luis Potosí: A Strategic Hub for Electromobility

González Martínez emphasized that San Luis Potosí has a unique opportunity to become the leading electric vehicle manufacturing hub in the Bajío region. He highlighted the state’s well-developed infrastructure, highly skilled workforce, and the strong commitment of global companies that continue to invest and expand operations in the region. BMW’s transition toward electromobility reflects the broader transformation of the automotive industry, and San Luis Potosí is at the forefront of this shift. The continued growth of electric vehicle production in San Luis Potosí places it among the most promising locations for future investments in sustainable mobility.

The ongoing expansion of the BMW plant is a crucial step in preparing for this new era of sustainable mobility. The Battery Production Center, currently under construction, will be essential for powering the next generation of electric vehicles. By localizing battery production, the company aims to optimize supply chains, reduce production costs, and minimize environmental impact by shortening transportation distances.

Investment in Workforce Training and Technological Advancement

A key element of this transformation is workforce development. According to González Martínez, engineers and technicians from San Luis Potosí are undergoing specialized training in Germany, learning advanced manufacturing processes that will define the future of vehicle production. These new methodologies emphasize a high degree of automation and cutting-edge technology, ensuring San Luis Potosí remains competitive in the global automotive market. The rise of electric vehicle production in San Luis Potosí has made the state a model for industrial transformation as companies increasingly invest in workforce training and technological advancements.

Investing in human capital is essential to maintaining high production standards and ensuring local workers have the skills to operate next-generation machinery. With automation and artificial intelligence playing a growing role in vehicle manufacturing, training initiatives like these help bridge the gap between traditional automotive production and future mobility solutions.

San Luis Potosí’s Global Automotive Impact

The BMW plant in San Luis Potosí has contributed to the company’s international supply chain. Since 2020, the facility has produced an impressive 406,139 vehicles, of which 390,141 have been exported to 80 global markets. This highlights the plant’s strategic importance and BMW’s confidence in the state’s ability to deliver high-quality automobiles to customers worldwide.

The state’s growing prominence in the automotive sector is further reinforced by its geographic location, which offers easy access to major national and international markets. San Luis Potosí is well-connected through a robust transportation network, including highways, railways, and proximity to key ports, making it an attractive destination for automotive investments.

A Future Driven by Sustainability and Innovation

Beyond economic benefits, the shift toward electric vehicle production aligns with global sustainability goals. As climate concerns drive the demand for greener transportation options, San Luis Potosí’s role in the electromobility revolution positions it as a forward-thinking player. The state’s support of renewable energy initiatives and green manufacturing processes will further enhance its appeal to investors and consumers seeking environmentally responsible mobility solutions.

With the continued support of both the public and private sectors, San Luis Potosí is on track to becoming a benchmark for electric vehicle production, not just in Mexico but on an international scale. Investing in infrastructure, workforce training, and cutting-edge technology will ensure the region remains competitive in the evolving global automotive landscape. As BMW and other industry leaders embrace the transition to electromobility, San Luis Potosí is poised to become a driving force in the future of sustainable transportation.

Conclusion

The evolution of electric vehicle production in San Luis Potosí marks a pivotal moment in the state’s industrial and economic development. With multinational companies like BMW making substantial investments and a government committed to fostering technological innovation, the state quickly becomes a leader in sustainable mobility. The combination of a highly skilled workforce, modern infrastructure, and strategic location makes San Luis Potosí an ideal destination for businesses looking to participate in the global shift toward electrification. As more companies join the movement toward green manufacturing and renewable energy integration, electric vehicle production in San Luis Potosí will continue to drive economic growth, job creation, and long-term sustainability. Looking ahead, the region’s commitment to electromobility will not only shape the future of the automotive industry in Mexico. Still, it will also serve as a model for other areas embracing clean energy solutions and technological advancement.

Adopting the Global Minimum Tax (GMT) is one of the most significant developments in the international economy in recent years, with the potential to reshape how multinational corporations are taxed globally. In this context, Uruguay, as a member of the Organization for Economic Cooperation and Development (OECD) and a key player in Latin America, finds itself at a fiscal crossroads that requires detailed and strategic analysis of how to implement and adapt to this new reality. This article explores the fundamental principles of GMT, its potential effects on taxation in Uruguay, and the challenges and opportunities it presents for the country regarding competitiveness, tax fairness, and foreign investment.

The GMT: A Paradigm Shift in Multinational Taxation

The GMT results from a concerted effort by more than 130 countries within the OECD and the G20 to counter aggressive tax optimization practices that allow large multinational corporations to avoid paying appropriate taxes using tax havens and transfer pricing structures. In September 2021, these countries agreed that companies with global revenues exceeding €750 million must pay at least 15% of their profits in each jurisdiction where they operate, even if that jurisdiction offers a lower corporate tax rate. This agreement significantly impacts taxation in Uruguay and redefines the role of tax incentives as tools for attracting investment.

The GMT is designed to correct the distortions caused by tax competition, which has often led to the erosion of tax bases and reduced countries’ ability to finance their economies. Multinational corporations have been accused of exploiting international tax loopholes to lower their tax burdens by benefiting from more permissive tax systems. The GMT aims to level the playing field by imposing a minimum tax rate that cannot be circumvented through offshore tax structures.

The Impact of the GMT on Uruguay’s Tax System

For Uruguay, a country that has adopted a competitive tax model based on incentives, the impact of the GMT could be significant. Over the past decades, Uruguay has established a series of attractive tax regimes, particularly for foreign investors. These include tax incentives in free trade zones, the Comap regime (Application Commission of the Investment Promotion Law), and favorable fiscal policies in technology, international trade, and logistics sectors. These regimes have been essential for developing key industries and attracting international investments, making taxation in Uruguay a critical factor in economic policy discussions.

Challenges in Adapting to the New Global Regulations

1. Compatibility with Free Trade Zones

Uruguay has pioneered the implementation of free trade zones, allowing companies to operate without paying taxes on their profits and enjoying benefits on importing and exporting goods. While free trade zones are a cornerstone of Uruguay’s investment attraction policy, the GMT could introduce restrictions on the applicability of these benefits, as the new international regulations aim to eliminate harmful tax competition. If so, Uruguay may need to revise its preferential tax regimes to align with the latest standards while preserving its competitiveness in taxation in Uruguay.

2. Impact on the Comap Regime and Investor Benefits

Another challenge arises concerning the Comap regime, which promotes investment in strategic sectors such as infrastructure, industry, and technology. This regime has attracted foreign direct investment (FDI) by offering tax exemptions on the Corporate Income Tax (IRAE) and other direct taxes. Implementing the GMT may require adjustments in how Uruguay grants these benefits, as the new tax ensures that large multinationals cannot benefit from tax rates below the global threshold. This could lead to reassessing Uruguay’s preferential tax regimes and impact taxation in Uruguay for multinational firms.

3. Potential Loss of Tax Competitiveness

While Uruguay has historically enjoyed a competitive advantage due to its attractive tax regimes, adopting a GMT could reduce its appeal compared to other jurisdictions that have not adopted these rules, particularly in the region. Multinational corporations might choose to relocate to countries with more favorable tax regimes or those that can offer more aggressive incentives without being restricted by a global minimum tax. This shift could create challenges for taxation in Uruguay as it seeks to balance compliance with international standards while maintaining its appeal to foreign investors.

Opportunities and Adaptations for Uruguay

1. Strengthening Tax Transparency and Enhancing International Image

Implementing the GMT offers Uruguay a unique opportunity to strengthen its international reputation regarding tax transparency. By aligning with global standards, the country could improve its ranking in fiscal governance indices and attract investment that is more committed to sustainability and corporate social responsibility. The GMT could increase confidence in Uruguay’s tax system, which would be crucial for securing more stable and long-term investment.

2. Adjusting Incentives to Maintain Competitiveness

Although Uruguay will likely need to adjust its tax incentives to comply with the GMT, mechanisms could still be used to maintain competitiveness. Uruguay could explore alternatives such as strengthening investment incentives in innovation and technology or sectors like renewable energy. The key will be adapting tax incentives to the new requirements while keeping the country’s strategic interests in focus, ensuring taxation in Uruguay remains attractive for global investors.

3. Adapting to the New Global Tax Framework Without Losing Appeal

Although Uruguay has historically relied on tax incentives, it can adapt without losing attractiveness. The country has a strong institutional framework, a diversified economy, and a growing reputation as a regional hub for financial and logistical services. These elements could continue positioning Uruguay as an attractive destination for foreign investments despite implementing the GMT.

The Current Debate: Challenges and Opportunities

In Uruguay, the debate on implementing the GMT is closely tied to the tension between competitiveness and international fiscal responsibility. While some business and academic sectors argue that the GMT could harm the country’s competitiveness and ability to attract investment, others contend that it is necessary for greater tax fairness. By adapting to global standards, Uruguay could strengthen its strategic position in the regional context.

Conclusion

The GMT marks a paradigm shift in international taxation, with direct implications for countries like Uruguay, which have built their investment attraction model on favorable tax policies. As Uruguay navigates this adaptation process, it will be crucial for the government to balance complying with new international rules and maintaining its tax competitiveness. Tax transparency, corporate social responsibility, and innovation in fiscal incentives will be key for Uruguay to remain an attractive destination for foreign investment, even in a more regulated global environment.

This complex process will require a technical and strategic approach from tax authorities and a detailed analysis of the short—and long-term consequences. Uruguay’s fiscal future will largely depend on its ability to adapt swiftly to this new global framework without compromising its economic growth or long-term development goals.

Substantial Economic Expansion in 2024

Peru was one of the fastest-growing countries in Latin America in 2024, registering an economic expansion of 3.33% for the year. Along with Brazil, Peru led regional economic growth, reflecting a steady recovery and robust performance across multiple sectors. According to the Ministry of Economy and Finance (MEF), this growth marked the most substantial expansion since 2021 and reinforced Peru’s position as one of the leading economies in Latin America.

Key Drivers of Economic Growth

The economic expansion in 2024 was primarily driven by the strong performance of primary sectors, which benefited from neutral climate conditions and increased mineral extraction. Additionally, non-primary sectors saw a significant recovery, fueled by the rebound in domestic demand, greater investment, and rising household consumption.

Performance of Primary Sectors

According to the National Institute of Statistics and Informatics (INEI), Peru’s primary sectors maintained their dynamism throughout 2024, with the fishing sector standing out as the top performer. The fishing industry surged by an impressive 24.9%, attributed to a record-high anchoveta catch enabled by favorable oceanographic conditions. This sector’s outstanding results were crucial in driving overall economic growth in Latin America.

The mining sector, another pillar of Peru’s economy, grew by 2% due to increased molybdenum, gold, and silver production. The year 2024 marked the first full year of operations for the Quellaveco mine, significantly contributing to mining output. Likewise, the hydrocarbons subsector expanded by 2.1%, driven by higher crude oil extraction from Lot 95, where new wells became operational. The agricultural sector also showed resilience, growing by 4.9%, thanks to favorable harvests and strong agro-exports, particularly in blueberries, which maintained high international demand.

Recovery of Non-Primary Sectors

Meanwhile, non-primary sectors also demonstrated notable improvement. The construction sector grew by 3.6%, supported by an uptick in private investment and increased public infrastructure projects. Similarly, the services sector expanded by 3.3%, benefiting from heightened economic activity, while the commerce sector recorded a 3% increase. Additionally, non-primary manufacturing rose by 2.5%, reflecting greater production across various industries.

Domestic Demand and Household Consumption Boost Economic Growth

The MEF highlighted that domestic demand growth, mainly driven by improved private investment and higher public works execution, was fundamental in boosting household consumption. Peru’s robust economic performance in 2024 contributed significantly to economic growth in Latin America, reinforcing the nation’s role as a key player in the region.

Strong End to 2024 with High December Growth

The INEI reported that Peru’s GDP sharply increased by 4.85% in December 2024, the highest monthly growth rate since May 2024. This marked the ninth consecutive month of economic expansion, reinforcing the country’s recovery trajectory.

Significant gains in primary and non-primary sectors bolstered economic activity in December. The primary sectors experienced remarkable growth, expanding by 9.1%, the highest rate since May. The fishing industry alone soared by 76.8%, while primary manufacturing increased by 37.5%, both fueled by the strong anchoveta harvest. Additionally, the agricultural sector grew by 7.5%, driven by higher yields of export crops such as grapes, blueberries, and mangoes and increased poultry farming. The mining sector returned to positive growth with a 2% expansion after two months of contraction, supported by higher molybdenum, copper, gold, and silver production, although zinc extraction declined.

Non-primary sectors also maintained strong momentum, expanding by 3.8% in December, marking nine consecutive months of growth. The commerce sector rose by 3.6%, while services posted a 4.1% increase, benefiting from improved household spending amid rising employment levels. Non-primary manufacturing grew by 3.4%, with notable increases in the production of textiles, clothing, chemicals, furniture, and wood products, among others.

Economic Outlook for 2025

Peru’s economic recovery is expected to gain further traction in the coming months, supported by positive indicators across key areas. For instance, in January 2025, electricity production increased by 2%, marking its eighth consecutive month of growth. Investment and consumption indicators also showed promising signs. The importation of capital goods, including construction materials and transportation equipment, surged by 26.7% in January, extending a ten-month growth streak. Additionally, imports of consumer goods rose by 22.2%, accumulating five months of continuous expansion.

Another positive indicator is the BBVA Big Data Consumption Index, which registered a 9.3% increase in January 2025, maintaining a positive growth trend for fourteen consecutive months. This reflects a continued rise in household consumption, reinforcing optimism about Peru’s economic outlook for 2025.

Summary

Peru demonstrated strong economic growth in Latin America in 2024, registering a 3.33% expansion, making it one of the fastest-growing economies in the region. This growth was fueled by the strength of its primary sectors, particularly fishing, mining, and agriculture, alongside improvements in non-primary sectors such as construction, services, and commerce. December 2024 marked a peak in economic performance, with GDP surging by 4.85%, the highest monthly growth rate of the year. The INEI and MEF emphasized the role of rising domestic demand, investment, and exports in driving this expansion. Peru’s positive trajectory will continue into 2025, supported by increased electricity production, capital goods imports, and rising household consumption. As one of the leaders of economic growth in Latin America, Peru’s resilience and sectoral diversification reinforce its position as a crucial player in regional economic development.

Panama was already beginning to integrate into a semiconductor production network alongside seven other countries. However, sudden shifts in U.S. trade policy under Donald Trump’s new presidency have raised doubts about this program’s implementation speed.

This blog post examines Panama’s present and industrial future amid uncertain investments, growing opportunities, and nearshoring as the global economy adapts to a new framework organized into trade blocs.

Value

Panama’s industrial sector is a vital component of the national economy, accounting for nearly one-third of the gross domestic product (GDP) when including construction.

A significant part of the national industry is agro-industrial production, which integrates manufacturing with agriculture. One of Panama’s main agro-industrial products is sugar. It is estimated that Panama produces more than 150,000 metric tons of sugar per year—equivalent to the weight of over 13,000 “diablos rojos” buses in sugar annually.

On the other hand, the manufacturing subsector has experienced a significant decline relative to the overall economy, contributing 5% of GDP in recent years compared to nearly 20% in 1970. Today, this subsector includes cement, beverages, and processed foods.

The industrial sector also includes electricity generation. Panama has an installed capacity of over 4,200 MW, which covers local demand and generates a small surplus that can be traded within the region.

However, despite this internal diversification, the industrial future of Panama depends on imports, and the sourcing of equipment and software from abroad. It is estimated that more than two-thirds of the goods consumed by the Panamanian industry for operation are imported.

Employment

Last year, approximately one-sixth of the country’s workforce, around 300,000 people, was employed in the industrial sector. The average compensation for skilled industrial workers ranges between $10,000 and $11,000 annually, but the exact figure depends on the subsector. In construction, an experienced worker can earn more than $15,000 annually.

As a stable source of middle-income jobs, the future expansion of industrial employment could be key to halting the severe loss of formal jobs in the country, where the informal employment rate hovers around 50%. Strengthening the industrial future of Panama will be essential in addressing these employment challenges.

Strengths

A solid industrial base enhances economic stability by reducing dependence on imports. This is particularly advantageous in times of global instability.

Moreover, developing a robust manufacturing sector promotes skill acquisition among the population, leading to higher productivity and overall wage growth.

Government assessments have identified the regions around David and Las Tablas as potential industrial hubs, particularly in agro-industry, but promises have outpaced actual investments.

Given the country’s size and population, establishing just three significant industrial investments in strategic locations could significantly increase employment and GDP, addressing several economic challenges, such as the high cost of living and declining competitiveness.

Nearshoring

Nearshoring, in simple terms, refers to the relocation of supplier companies to the Americas from China, Asia in general, India, and, in some cases, Europe. The goal is to simplify international supply chains and reduce risks caused by global uncertainty.

Panama was already beginning to integrate into a semiconductor production network alongside seven other countries. However, sudden shifts in U.S. trade policy under Donald Trump’s new presidency have raised doubts about this program’s implementation speed.

Due to this uncertainty, the country must proactively identify and attract international industrial investments from Europe and Southeast Asia to compensate for any delays in the U.S. plans to restructure its supply chain.

Nevertheless, Panama already possesses an undeniable advantage: the U.S. dollar.

Using this currency eliminates exchange rate risk, making it easier for industrial subsidiaries to relocate to Panama and integrate their financial operations with their U.S. headquarters.

However, the same investment barriers persist. According to the three leading credit rating agencies—Moody’s, S&P Global, and Fitch—these barriers include governance issues, fiscal instability, and a lack of long-term financial planning.

International investors seek to strengthen the rule of law in the country through improvements to the judicial system. This, along with a demonstration of regulatory stability, would facilitate the attraction of foreign direct investment, strengthening the industrial future of Panama.

Export

For decades, the National Government has implemented policies to encourage the development of local export-oriented industries, but the results have been mixed.

The coffee agro-industrial sector, however, took a proactive approach and sought new markets globally, achieving historic sales and elevating Panama’s reputation and prestige. Subsequently, the National Government offered additional incentives that facilitated this development.

Based on this experience, an effective strategy to drive industrial growth for export purposes would be offering economic incentives to private sector players outside government agencies who successfully open new markets for existing or developing Panamanian industries.

Such a strategy could promote commercial expansion under private sector leadership rather than keeping it tied to the bureaucratic processes of official trade missions and lengthy customs authorizations.

Steps Forward

According to studies by the International Monetary Fund, Panama will need to strengthen its legal and fiscal stability, maintain its investment pace in its logistics network to support manufacturing exports, and invest in new energy sources to sustain additional productivity to expand its industrial sector beyond construction.

The domestic development of new industries, the expansion of existing ones, or the establishment of operations in Panama by foreign companies would have the dual advantage of increasing formal employment and developing workforce capabilities for future activities.

For all these reasons, the industrial future of Panama holds significant potential that the country could leverage, alongside its geographic location, to build a resilient and competitive productive base for the 21st century.

If a well-planned industrial policy is implemented, an additional 1% increase in the industrial GDP in the medium term could eventually contribute between $600 million and $800 million annually, improving wages, formal employment, and export competitiveness.