A letter was sent to the U.S. Department of Commerce by Costa Rican Minister Manuel Tovar.

Costa Rica’s government is fighting off what it says is the threat of tariffs on medical devices it exports to the United States. The devices have been the mainstay of the Central American nation’s export economy and a vital source of supply for the United States healthcare system, which depends on efficient and reliable access to medical technologies. Minister of Foreign Trade Manuel Tovar this week delivered a letter to the U.S. Department of Commerce (DoC) on the strategic importance of Costa Rican production to the national security, health, and competitiveness of the United States.

“The security and resilience of the United States healthcare system has proven, time and time again, to be critically dependent on the high performance, agility, and cutting-edge technology of Costa Rican medical device manufacturing,” Tovar said in the official document. “In light of these factors, Costa Rica does not hesitate to consider its exports of medical devices to be a pillar of the national and regional security of the United States.”

The letter, Costa Rica’s official response to a U.S. proposal to review medical device imports under Section 232 of the Trade Expansion Act, is the most recent salvo in a back-and-forth between Costa Rican officials and the DoC. The review, which is now underway, has opened a window during which the Trump-era provision could be used by Washington to impose tariffs or other trade restrictions in the event that it is decided imports may threaten national security.

The Importance of the Section 232 Probe

The Section 232 investigation initiated by the United States will explore whether the current level of imported medical devices could be seen to undermine the country’s strategic preparedness or domestic production capacity in the event of a major health emergency or security crisis. At stake is the supply of a wide range of essential and lifesaving products, from surgical and diagnostic equipment to prosthetic implants and personal protective equipment used throughout the United States healthcare system.

Costa Rica argues that cooperation between both countries in the sector has not only been economically beneficial but strategically indispensable. During the review consultation period, officials from the Ministry of Foreign Trade (COMEX) and Trade Representative (COMCE) noted that Costa Rican medical device manufacturing facilities have built a global reputation for adhering to the strict regulatory and quality requirements imposed by the United States, such as those of the U.S. Food and Drug Administration (FDA), as well as international ISO standards.

“As a sovereign nation with a democratic political and legal system based on transparency, the rule of law, and international cooperation, Costa Rica’s compliance with international and U.S. standards and regulations ensures companies operating in the country can do so efficiently and with high-quality production,” Minister Tovar explained.

Costa Rica: A Key Ally in a Resilient U.S. Healthcare System

The United States healthcare system is sustained by a network of secure and diversified supply chains. The COVID-19 pandemic highlighted just how critical geographically proximate partners like Costa Rica have become to providing continuity and stability to the industry when demand spikes or global disruptions occur. Costa Rica’s rapid response to the surge in U.S. medical demand during the height of the crisis helped it to ramp up production and make its facilities some of the only available in the world at the time.

Data from COMEX reveals that U.S.-bound medical device exports from Costa Rica increased 39% between 2020 and 2021, despite global supply chain strains. U.S. companies with facilities in Costa Rica were able to operate with much greater stability and respond quickly to shortages, while many suppliers in distant regions faced severe delays and shutdowns.

Facilities closer to the U.S. benefit from shorter lead times, reduced shipping costs, and faster response times—advantages that are especially critical in the United States healthcare system, where timely access to equipment can determine the availability of essential care.

U.S. Corporate Strategy Integrated With Costa Rica’s Growth

Costa Rica is home to over 90 multinational medical device companies, including Medtronic, Boston Scientific, Cardinal Health, Abbott, and Baxter. Several of these have facilities producing Class II and Class III medical devices—some of the most technologically advanced on the market and used in the most critical healthcare applications.

“In allowing U.S. companies to centralize domestic resources on research, development, and innovation, the current supply chain structure strengthens U.S. technological leadership in a competitive global market, reinforces the continuity of hemispheric supply, and supports the expansion of U.S. exports worldwide,” the statement reads.

The integrated production model ensures that the United States healthcare system benefits from cross-border collaboration that enhances capacity, reliability, and readiness for future demand.

Closer Ties Through CAFTA-DR

Costa Rica also stressed the extent to which bilateral cooperation has been strengthened by the CAFTA-DR free trade agreement. In effect, since 2009, the trade pact has harmonized regulations, expanded market access, and encouraged high-tech manufacturing investment. This enabled Costa Rica to become the largest exporter of medical devices in Latin America and one of the top global suppliers to the United States.

Integration has also extended to institutional and workforce development, providing multinational companies with operational continuity supported by political stability and a highly trained talent base.

Positioned to Compete With Global Counterparts

Competition in the global medical device industry is intense, but Costa Rica argues that what matters now is not just cost but reliability, transparency, and national security alignment. In times of crisis or market volatility, suppliers in closer, more stable regions can respond faster and more consistently than distant or politically unstable counterparts.

Conclusion

In an era where competition and geopolitics increasingly shape how strategic supply chains are managed, Costa Rica’s message to Washington is clear: the strength of the United States’ healthcare system is tied to the stability of Costa Rica’s production ecosystem. For the United States, defending its global leadership in medical technology means reinforcing—not restricting—this partnership.

At a key moment of parliamentary debate and budgetary review, the Uruguayan government seeks to reshape its tax system with a dual objective: to boost state revenue without affecting middle- and lower-income sectors, and to maintain the country’s appeal to foreign investors. The reform, which combines selective incentives with new tax burdens, aims to reinforce Uruguay’s position as one of the most stable and reliable destinations in Latin America.

Recognized for its strong institutions, legal security, and economic predictability, Uruguay now seeks to consolidate its international reputation through a more balanced fiscal framework. The initiative, led by the Ministry of Economy and Finance, aims to harmonize two goals that often come into conflict: tax pressure and fiscal competitiveness. This reform represents a pivotal evolution of fiscal policy in Uruguay, reflecting a strategy designed to preserve stability while modernizing revenue structures.

Continuity as a Defining Feature

One of the pillars of the government’s strategy is to preserve the continuity of its fiscal and investment policies, a hallmark that has distinguished Uruguay from its neighbors. Stability remains the country’s main asset in a volatile regional context. In this regard, the Executive does not plan to alter the rules for obtaining tax residency for foreigners, but rather to adjust the conditions of the tax exemption or “tax holiday” regime, particularly for large investment cases.

Up to now, foreign individuals who chose to establish tax residency in Uruguay could access tax benefits for a period of ten years, provided they met specific requirements related to physical presence (183 days or more per year) or investment. The new proposal maintains these foundations but tightens the conditions for those opting for the investment regime by raising the minimum required level of economic contribution and establishing a renewal system conditioned on the reinvestment of capital.

This adjustment seeks to ensure that fiscal benefits translate into a real impact on the national economy, preventing Uruguay from being perceived merely as a tax haven. Specifically, current beneficiaries of the tax holiday may extend their exemption for up to twenty years, provided they meet additional commitments in productive investment, innovation, or job creation. This reflects a pragmatic approach within fiscal policy in Uruguay, aimed at combining competitiveness with responsible economic stewardship.

A Strategy to Attract Capital and Talent

The Ministry of Economy believes that this new approach could energize key sectors such as real estate, technology startups, venture capital, and international financial services. The goal is to attract high-net-worth individuals who not only reside in Uruguay but also invest and participate actively in its development.

During the pandemic, Uruguay witnessed a notable influx of high-wealth residents from neighboring countries and Europe, many of whom were drawn by its health stability, social order, and tax regime. Authorities acknowledge that this phenomenon had a multiplier effect on the economy: it boosted demand in the real estate sector, strengthened investment in local projects, and stimulated consumption in luxury goods and specialized services.

With the new reform, the country aims to maintain this trend under a more demanding and sustainable framework. “Uruguay can consolidate itself as a regional hub for innovation and capital, combining quality of life, legal certainty, and a competitive tax system,” sources from the Ministry highlight. The integration of these goals demonstrates how fiscal policy in Uruguay serves as a strategic tool for promoting long-term investment and economic resilience.

Balancing Revenue and Attractiveness

One of the most sensitive aspects of the reform lies in increasing tax revenue without discouraging investment. In this regard, the Executive projects an additional income of about USD 600 million annually, thanks to a series of tax changes ranging from the taxation of foreign income to the adoption of international standards.

Among the most significant measures is the implementation of the global minimum tax on multinationals, aligned with the agreements of the Organisation for Economic Co-operation and Development (OECD). This tax, which will apply to large corporations operating in the country, could contribute between USD 350 million and USD 400 million annually to public finances. Although it implies a higher tax burden for companies, Uruguay’s framework would remain more favorable than that of other countries, thereby preserving the nation’s relative competitiveness in the region.

Another notable change focuses on taxing capital gains generated abroad, particularly those derived from the sale of shares or holdings in non-resident companies. Until now, such gains were not subject to taxation, creating a gap in terms of fiscal fairness. With the new legislation, the government expects to collect around USD 55 million annually from this measure, while also closing potential avenues for tax evasion and aggressive fiscal planning. These measures underscore how fiscal policy in Uruguay is evolving toward greater equity and global integration.

Debate Over Banking Secrecy

The most controversial component of the project concerns banking secrecy. The government seeks to allow the General Tax Directorate (DGI) direct access to financial information without requiring judicial authorization, a measure that would strengthen oversight and the fight against tax evasion. However, this proposal faces political resistance in Parliament and from some business sectors, who fear it could undermine confidence in Uruguay’s financial system.

The lack of a legislative majority could prompt the Executive to postpone this initiative to prioritize other elements of the fiscal package, though the debate remains ongoing. In any case, the global trend points toward greater financial transparency, consistent with international standards for the automatic exchange of tax information.

Changes to the Personal Income Tax (IRPF) and the Non-Resident Income Tax (IRNR) are geared toward a more comprehensive model, with an expanded tax base that includes foreign income. This marks a step toward a partially global taxation system in which Uruguayan residents with income abroad also contribute to national revenue.

Although the measure may generate resistance among some taxpayers, experts believe it strengthens the coherence of the fiscal system and reinforces its legitimacy in the eyes of the public by reducing perceptions of excessive privileges for specific sectors.

Beyond the technical adjustments, the reform is part of a long-term development strategy that seeks to position Uruguay as a destination for investment, residence, and talent. The Director of Free Zones and other divisions of the Ministry of Economy have emphasized that the goal is not limited to attracting financial capital but also to promoting innovation, creating qualified jobs, and fostering productive diversification.

The plan includes technological modernization of fiscal processes, the promotion of investment funds dedicated to innovation and audiovisual production, and the expansion of the creative economy, which has gained prominence in recent years. All of these initiatives are part of the five-year budget currently under discussion in Parliament, regarded as the cornerstone of the country’s economic policy for the coming years.

Uruguay’s tax reform combines revenue-enhancing measures with selective investment incentives. While some analysts interpret it as an effort to increase the tax burden on the most privileged sectors, others view it as an opportunity to consolidate a fairer and more competitive model.

The main challenge will be ensuring that the country remains attractive to foreign capital while maintaining social equity and fiscal sustainability. Ultimately, Uruguay seeks to uphold its reputation for stability while taking a decisive step toward a more modern, inclusive, and globally aligned tax system. This comprehensive approach confirms that fiscal policy in Uruguay is becoming a central pillar in the nation’s long-term strategy to balance growth, equity, and international competitiveness.

Guanajuato emerges as a new industrial powerhouse in Mexico with $3B+ investment, export growth, and leadership in automotive and technology innovation.

Guanajuato is a Mexican Industrial Powerhouse

With over $3 billion in investment and 12 productive industrial clusters, the state of Guanajuato has been redefining itself as one of Mexico’s top five economic entities. Guanajuato’s Secretary of Economy Claudia Cristina Villaseñor Aguilar confirms that it is no longer a state defined by agriculture and mining. Instead, it has achieved a diversified and competitive presence in key industries such as automotive, aerospace, logistics, pharma, textiles, IT, and medical devices.

A 25-Year Transformation Strategy

Industry Overcomes Agriculture

Twenty-five years ago, Guanajuato took a strategic leap to overcome its dependency on agriculture. Now it leads the country in several productive sectors. This was the result of a long-term plan that included attracting foreign investment and promoting human talent, among other strategies. The current administration continues to build upon a legacy of good planning, continuity, and vision to further entrench Guanajuato as a Mexican industrial powerhouse in terms of production, global connectivity, and talent.

Automotive Industry: Main Growth Engine

The automotive cluster is Guanajuato’s strongest productive engine. In 2024, it surpassed 896,000 light vehicles produced in the state, with an installed capacity of nearly 1 million units/year. The OEMs are already there: General Motors, Mazda, Toyota, Honda, and so are many Tier 1–3 suppliers, including Pirelli, Continental, and American Axle, among others. This industry alone represents about 20% of the state’s GDP and accounts for an important share of national exports. It’s no wonder that Guanajuato now stands out in terms of automotive manufacturing within Mexico and Latin America.

Record-Breaking Foreign Investment

In 2024, Guanajuato became one of the top 3 states for new foreign direct investment (FDI), with over $3 billion USD. This comes from 35 projects located across different municipalities, with Salamanca, San José Iturbide, and Purísima del Rincón leading in new capital injection. This adds up to: Over 8,000 new direct jobs, a diversified portfolio of industries: Automotive, Agro-industry, Pharmaceuticals, Cosmetics, Emerging technologies, and Foreign countries leading the pack: Japan, United States, Germany, China.

Japan to Deepen Relationship with Guanajuato

A key example of foreign interest in the state was a trade mission to Japan, led by Governor Libia Dennise García Muñoz Ledo in Q1 2024. It resulted in $105 million in new investments, with 4 Japanese companies expanding or building plants in Guanajuato. Some of these will be introducing cutting-edge technologies to Mexico for the first time. Guanajuato is attracting new foreign investment, despite global trends towards uncertainty and protectionism. For international investors and especially Asian capital, Guanajuato represents a reliable, low-risk option.

Top Exporting State (Non-Border)

Guanajuato is Mexico’s number 1 exporting state outside the north and border regions. It already exports more than $33 billion USD a year, ranks 2nd in national manufacturing production, and generates more than 1.1 trillion pesos in production value. Its influence stretches beyond automotive manufacturing into other segments. Production capacity and export integration solidify its status as a Mexican industrial powerhouse with a global footprint.

Domestic Talent and Local Supplier Integration

Guanajuato’s most valuable competitive advantages lie in its local talent and its integration with local suppliers. Ranked 5th nationally in the number of IMSS-registered formal workers, there is a steady supply of skilled labor. Foreign investors are also partnering with certified local suppliers and businesses to generate a robust internal supply chain. The Conexión Industrial program coordinates these links so that new companies can rapidly establish productive relationships in the region. This generation of local and regional businesses already exceeds 72 million pesos. It is a lesson in best practices for the rest of the country.

Sustainability and Vision 2050

Villaseñor Aguilar also spoke about a long-term, strategic plan focused on green growth, sustainability, and smart investment. In this sense, she emphasized that Guanajuato is not just chasing after any amount of capital. Instead, it is fostering a holistic and sustainable ecosystem that benefits large global corporations and medium to small-sized local businesses. Future areas of focus to keep Guanajuato at the cutting edge of the Mexican economy include: Electromobility, Cybersecurity, Data centers, Tech innovation, and Green infrastructure. These are investments in the future that will make Guanajuato remain a Mexican industrial powerhouse for the next generation.

Mexican Companies Invest, Too

Finally, Villaseñor Aguilar noted that Mexican companies were the fourth-largest investor group in the state. The data shows that it is not only foreign companies that have trust in the Guanajuato economy. National entrepreneurs are also driving local production, helping the state to fuel its own growth. The combination of national and international investment demonstrates that Guanajuato is maturing into a sophisticated market, ready for global competition.

Ambitious Goals, Measurable Results

The current administration has set itself a six-year goal of $8 billion in new foreign investment. It has already reached 40% of that target. Another 25 projects in the pipeline could add $500 million and 5,000 jobs. The previous government more than doubled its investment target from $5 billion to over $10 billion. Momentum is growing for Guanajuato in this key area.

Conclusion: An Industrial Reality

From its beginnings in transforming an agricultural state to its current position as a leader in manufacturing, Guanajuato’s industrial ascent is no longer a vision but a consolidated reality. Record-breaking productive figures, attracting foreign investment, a strong export machine, and a clear vision for a sustainable future in key sectors. All of these trends place the state of Guanajuato as one of the main pillars of the Mexican economy. And in the company of national and international figures like Secretary Villaseñor Aguilar and Governor Libia Dennise García Muñoz Ledo, it is not just adapting to global industrial trends, but setting them.

Panama and Paraguay, two countries committed to expanding bilateral relations and deepening regional integration, have made significant strides toward that end in recent weeks. On Monday, October 20th, Panamanian President José Raúl Mulino, R., received Paraguayan President Santiago Peña Palacios, R., at the Palace of the Herons in Panama City.

In a bilateral meeting, the presidents of Panama and Paraguay reaffirmed their commitment to political, economic, and trade dialogue as well as Panama’s interest in acceding to the Southern Common Market (Mercosur).

Advocating integration in Latin America

President Mulino R. emphasized that Panama’s membership in Mercosur will be a historical one for the country and a milestone in its regional engagement strategy. He revealed that on December 2, he will send a formal letter of adhesion to Mercosur at the upcoming summit in Brasilia to request membership in the regional bloc. The head of state stated that Panama’s inclusion in Mercosur will provide unprecedented opportunities for exporters and investors.

On the other hand, Peña Palacios, R. assured Panama of Paraguay’s support for the acceleration of the negotiation of its accession to Mercosur, with which both countries will be linked. “We want Panama’s logistics platform to open new markets and, with this, everyone wins,” said the president of Paraguay.

Peña Palacios, R. also stated that Mercosur is a consolidated and stable organization, now 35 years old, with a solid internal structure, with countries that have different internal policies and that, within that framework, they respect each other and seek to grow together.

Growth for both countries

President Mulino R. also said that the integration process will bring tangible economic benefits to both countries. Panama, for example, could expand its export sector to Paraguay and other Mercosur countries in the agricultural sector. Pineapple, watermelon, melon, cassava, papaya, and other high-demand agricultural products in the South American nation could open up an expanded market and an income source for the Panamanian government.

In a similar way, Paraguay’s agricultural sector could gain easier access to the Panamanian market. Soy, meat, and processed foods are just some of the products that the South American nation could see as an export opportunity, once the membership is formalized. Panama is also expected to serve as a logistical hub for Paraguayan goods to North America, the Caribbean, and Asian markets.

Panama’s multimodal system, which includes its world-renowned Panama Canal as well as Tocumen International Airport and a modern and efficient network of seaports, is poised to be a central gateway for the flow of Paraguayan goods, services, and people between markets in the south and the north of the continent, with significant savings in costs and time for both importers and exporters.

Panama: Integration is the way of the future

Mulino R. also reiterated the Panamanian government’s guiding principle for foreign policy and the international agenda as a whole: “integration is the way of the future and isolation is the way of backwardness.”

According to the president, bringing South and Central America together through a trade corridor that leverages each country’s comparative advantages is the way to go. In this regard, Palacio Peña, R. stressed that Paraguay and Panama share the same vision and a commitment to bringing benefits to both nations.

Taking advantage of Panama’s location

Panama’s geographical location has long made it a crossroads of global trade. The Panamanian government aims to use this strategic location to open Mercosur up to markets outside Latin America. In addition to its unrivaled canal, Panama is located at a multimodal crossroads of air, sea, and land connections, making it a natural central gateway for the movement of goods, services, and people between the north and south of the continent.

Peña Palacios R. noted that Paraguay recognizes the great potential of Panama’s logistics platform, its multimodal system, and its high connectivity as enabling factors for competitiveness across the region and for Paraguay in particular. The Paraguayan head of state went on to say that he sees Panama’s ports and its world-class airport infrastructure as a model for integration. He stated that Tocumen International Airport in Panama already serves as a key connection for Paraguayan travelers to the rest of the world.

Broad areas of cooperation and exchange

The two presidents also agreed on other areas of mutual interest beyond trade and commerce. Panama and Paraguay, for example, expressed interest in exploring opportunities in finance, pharmaceuticals, and real estate. Peña Palacios R. mentioned Panama’s thriving real estate and financial services sectors as examples Paraguay can learn from. Panama, on the other hand, has been drawn to Paraguay’s experience in agricultural innovation and renewable energy.

Investment and technology cooperation between both nations is a great opportunity to promote investment, industrial diversification, and technological exchange. Industrial and technological diversification, according to both administrations, will increase job opportunities, competitiveness, and improve the quality of life in both nations.

Extend diplomatic and institutional ties

On the one hand, a more private meeting took place in the president’s office. In attendance were Foreign Minister Javier Martínez-Acha, R. from Panama and Paraguayan Minister of Foreign Affairs, International Cooperation and Worship, Rubén Ramírez Lezcano, R. Minister.

On the other hand, there was an extended bilateral session with both delegations in the Cabinet Council Hall. Enrique Jara Ocampos, R. Ambassador of Paraguay to Panama, José Carlos Martín Camperchioli, R. President of the National Animal Health Service (SENACSA), Luis Enrique Strubing Cartes, R. Director General of State Ceremonial and Fernando Fronciani, R. Minister Director General of Protocol of the Foreign Ministry of Paraguay.

On the Panamanian side, Ambassador Humberto Girón-Soto R., Minister of the Presidency, Juan Carlos Orillac, R.; Minister of Agricultural Development Roberto Linares, R.; Minister of Economy and Finance Felipe Chapman, R. and the Acting Minister of Commerce and Industries, Eduardo Arango R.

Sustainable Development: Panama’s Trade Agenda

President Peña Palacios R. also lauded the reiteration by both nations to commit to sustainable development and inclusiveness in economic progress. Peña Palacios, R. praised Mulino R.’s leadership and stated that “today we are writing history, this is a historic moment for Latin American unity.” He complimented the Panamanian president’s efforts to integrate his country into international markets and lauded Panama’s role as a connector between continents.

Peña Palacios, R. said: “Panama has always been a country that looks at the world; it connects the Atlantic and Pacific through the canal, and it connects Latin America with the world through its airport. Today, and in this century, it is a country that looks south; it looks at integration, at building a strong and interconnected region.”

Invite the Paraguayan president to the CAF Economic Forum

President Mulino R. also invited Paraguayan President Peña Palacios R. to attend the CAF Economic Forum in January 2026, which will be held in Panama.

The Development Bank of Latin America (CAF) is organizing the event, which will provide a platform for business leaders, investors, and policymakers from across the region to meet, exchange ideas, and explore new opportunities. It will be a critical moment for Panama and Paraguay to showcase their progress in economic cooperation and attract new investment projects in logistics, agriculture, and energy.

The Institutional Program of the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) 2025–2030, published by the Secretariat of the Navy in the Official Gazette of the Federation, represents one of the most ambitious regional development strategies in contemporary Mexico. Its primary objective is to consolidate a multimodal logistics platform that integrates ports, railways, highways, and industrial hubs across the south-southeast of the country. Through this plan, the federal government aims to transform a historically marginalized region into a competitive node for international trade, fostering territorial cohesion, productive diversification, and social inclusion.

Historical Background and Strategic Importance

The idea of linking the Gulf of Mexico with the Pacific Ocean through the Isthmus of Tehuantepec is not new. As early as the 19th century, various governments and entrepreneurs envisioned the potential of this narrow land corridor as a trade route connecting two oceans. The trans-isthmian route was inaugurated in 1907, offering an alternative to maritime routes that connected the east and west coasts of the Americas. However, its strategic significance declined after the opening of the Panama Canal in 1914, which quickly became the dominant interoceanic passage.

Throughout the 20th century, successive Mexican administrations revisited the idea, proposing projects such as the Puebla-Panama Plan in the early 2000s and the Special Economic Zones during the mid-2010s. Yet, these initiatives failed to establish a lasting logistics model due to fragmented planning, insufficient investment, and weak institutional coordination. The creation of the CIIT in 2019 marked a turning point. Its incorporation into the Secretariat of the Navy in 2023 and the reform enacted in May 2025 provided the corridor with a clear operational structure, defined powers, and a dedicated budget—essential elements for its long-term consolidation.

Territorial Scope and Demographic Potential

The CIIT’s area of influence encompasses 120 municipalities: 46 in Oaxaca, 33 in Veracruz, 31 in Chiapas, and 10 in Tabasco. Together, they cover nearly 22% of Mexico’s southern territory and are home to approximately 5.1 million inhabitants. Notably, 64% of this population is of working age, while 23% are young people aged 15-29—a demographic advantage that can fuel labor supply and innovation.

However, the region still faces significant structural challenges. Informality affects up to 80% of the workforce in states such as Oaxaca and Chiapas, and multidimensional poverty remains widespread. Despite progress—2.3 million people moved out of poverty between 2018 and 2024—income inequality, limited access to quality education, and infrastructure deficits continue to hinder equitable development. The CIIT’s socioeconomic strategy seeks to reverse these conditions by linking investment projects with inclusive employment and training programs.

Strategic Objectives and Policy Lines

The Institutional Program defines four main objectives that together form the backbone of the CIIT’s strategy:

Increase port operational capacity: The modernization of the ports of Coatzacoalcos, Salina Cruz, Dos Bocas, and Puerto Chiapas aims to expand handling capacity and improve competitiveness. The plan includes technological upgrades, dredging operations, and digital platforms to streamline logistics and customs processes. These ports are projected to strengthen connectivity with 82 international ports, including 15 of the world’s top 100.

Optimize mobility for people and goods: The program includes the rehabilitation of 1,200 kilometers of railway lines (Z, K, and FA), the expansion of the Trans-Isthmic Highway 185, and integration with the Maya Train and other national transport corridors. These projects will reduce transportation times, lower costs, and create new logistical linkages between the Pacific and the Gulf coasts.

Promote balanced economic growth: Through the creation of 12 Development Poles for Wellbeing (PODEBI), the CIIT aims to attract private investment and generate formal employment. These zones will offer fiscal incentives, access to energy and water infrastructure, and simplified administrative procedures. Each pole will specialize in different industries, from agribusiness and renewable energy to advanced manufacturing and logistics services.

Strengthen interinstitutional coordination: The program emphasizes the alignment of federal, state, and municipal policies. It also promotes social participation and transparent monitoring to ensure that development benefits reach local communities.

Economic Trends and Employment Generation

Between 2013 and 2018, the CIIT states experienced negative or stagnant economic growth. However, the 2019–2024 period marked a clear turnaround, with Oaxaca, Chiapas, and Tabasco showing significant progress. The number of formal jobs increased from 32,703 to 107,981 across the four states, a remarkable improvement in a region long characterized by informality and seasonal employment. Oaxaca in particular recorded positive growth in 22 of the last 24 years, although its contribution to the national economy remains limited at around 1%.

The CIIT seeks to consolidate this progress by linking infrastructure investment with vocational training and industrial development. Partnerships with educational institutions, including technological universities and polytechnic institutes, aim to align academic curricula with the needs of new industries established in the PODEBI zones.

Logistics Performance and Infrastructure Development

In 2024, the ports included in the CIIT handled around 21% of national cargo. Salina Cruz accounted for 4% of traffic in the Pacific basin, while Coatzacoalcos and Dos Bocas together represented 16.8% in the Gulf of Mexico. These figures underline the corridor’s growing relevance in Mexico’s maritime network.

Railway connectivity is centered on the Isthmus of Tehuantepec Railway (FIT), which operates three main lines: Z, K, and FA. The rehabilitation of these routes enhances multimodal integration, enabling the transfer of goods between trains, trucks, and ships. On the road network, Highway 185 has been expanded by 96.7 kilometers, including six new bridges and fifteen vehicle crossings, benefiting approximately 950,000 residents and improving regional accessibility.

Industrial Development and Private Investment

The PODEBI zones represent a cornerstone of the CIIT’s productive model. Strategically located along the corridor, they aim to attract national and foreign investment through preferential fiscal treatment and access to upgraded infrastructure. Each zone will promote a specific productive vocation: agro-industrial clusters in Oaxaca, petrochemical and logistics complexes in Veracruz, and renewable energy hubs in Chiapas and Tabasco.

In addition, the federal government has introduced digital tools to simplify business registration, facilitate land use management, and accelerate environmental permits. This is expected to reduce red tape and increase investor confidence. Early investors have already shown interest in sectors such as electronics assembly, automotive components, and green hydrogen production.

Toward a Comprehensive Regional Transformation

The Institutional Program of the CIIT 2025–2030 presents a coherent and long-term vision for the Isthmus of Tehuantepec. Its approach goes beyond physical infrastructure by integrating workforce training, trade facilitation, customs modernization, and social inclusion. If effectively implemented, the program could generate over 150,000 new formal jobs by 2030 and increase regional GDP by up to 2.5 percentage points annually.

Ultimately, the success of the Interoceanic Corridor will depend on interinstitutional coordination, sustained public and private investment, and the ability to translate logistics improvements into tangible opportunities for local communities. By linking ports, railways, highways, and industrial zones, the CIIT has the potential to reshape Mexico’s territorial dynamics—turning a once peripheral region into a vital logistics hub that strengthens national integration and enhances the country’s role in global trade networks.

The news of ongoing negotiations on a trade agreement between Argentina and the United States has dominated the headlines of political and economic media in recent weeks. Promoted by its advocates as a historic opportunity to integrate Argentina more deeply into the world economy, the proposed trade pact is now the subject of scrutiny. Industry analysts and sectoral leaders express concerns that the agreement, rather than boosting the country’s exports, could bring more risks than benefits to the national industrial fabric.

This trade relationship is based on unequal terms. The expression refers to the inequality between two countries at different levels of industrial development, production capacities, and technological advancement.

Negotiating Asymmetries

Although no official statement has been made, the Argentine government announced the trade agreement between Argentina and the United States as an initiative that could be considered “historic.” Negotiators reportedly seek a deal involving mutual tariff cuts and preferential access to certain sectors. In theory, such an arrangement could diversify and increase Argentina’s exports of agricultural and energy products and provide a new opening for North American investors in infrastructure, logistics, and technology. However, delving deeper into the numbers and sectoral distribution, one can see that the relationship between Argentina and the United States unveils a scenario of competition rather than complementarity.

Argentina’s trade balance is illustrative in this regard. For the period up to August 2025, the main destinations for Argentine exports were Brazil (USD 8.186 billion), China (USD 5.173 billion), the United States (USD 4.696 billion), Chile (USD 4.429 billion), and India (USD 3.408 billion). Shipments to the U.S. were led by fuel and energy, crude oil, gold, aluminum, and hormones. In exchange, it buys from the United States refined petroleum and gas, vaccines, and polymers. The profile of these products shows not only a clear technological gap between the two economies but also more than a relationship of commercial complementarity. Argentina exports raw or semi-elaborated material to feed the U.S. productive process while importing manufactured goods with higher added value. It is a paradigmatic case of the old-fashioned dependency model in which industrialization and knowledge creation are concentrated in the more developed partner.

Industrial sectors

Argentina’s productive fabric also faces challenges with this trade agreement between Argentina and the United States. A significant portion of Argentina’s economy, especially the automotive, petrochemical, pharmaceutical, and metal-mechanical industries, competes directly with its American counterparts. The United States has clear advantages in terms of production capacity, energy costs, and innovation.

The provinces of Buenos Aires (PBA) would be the most vulnerable in the event of a relaxation of tariff barriers, as they concentrate the country’s largest industrial belt. Buenos Aires is responsible for around a quarter of the national export basket of manufactured goods. These are predominantly transport equipment and auto parts, which are sold mostly to Mercosur markets. The opening of these sectors to direct competition from U.S. producers would put at risk tens of thousands of jobs, especially in municipalities linked to these factories and supplier chains. Argentine manufacturers of automobiles and auto parts, in particular, could lose competitiveness without the protection mechanisms currently in place within Mercosur. U.S. cars and spare parts are cheaper and technologically more advanced, which would displace Argentine producers and contribute to deindustrialization in a productive pole that underpins a large part of the national employment structure.

Mercosur Commitments

Mercosur, with which Argentina maintains a strong trade relationship, poses another set of challenges to the trade agreement between Argentina and the United States. As a customs union, Mercosur’s rules prevent members from signing bilateral free trade agreements on their own, without exceptions negotiated at the bloc level. Such a move could create diplomatic tensions within Mercosur, where past attempts by individual member states to sign external deals have been rebuffed.

The unequal negotiating position could also lead to the imposition of “asymmetric” conditions on the Argentine side. The U.S. free trade agreements include clauses on the protection of intellectual property, security of investments, dispute settlement mechanisms, and alignment of regulatory frameworks. This could limit Argentina’s policy autonomy and subject it to potential lawsuits under international arbitration rules. The inclusion of “sunset clauses” or “negative lists” (which would exempt sensitive sectors from liberalization) could, in theory, reduce the impact. However, the application and enforcement of these lists are often the subject of complex bureaucratic processes. Argentina’s negotiating leverage will be limited, and it may not be able to extract such guarantees.

Winners and Losers

Nonetheless, it would be overly simplistic to predict that everything that comes out of a trade agreement between Argentina and the United States would necessarily have a negative impact on the national economy. On the contrary, and as already mentioned, certain sectors could gain from an expansion in their access to the U.S. market. Argentina’s energy sector could be one of the great beneficiaries of a trade agreement between Argentina and the United States, with the opening of the U.S. market to liquefied natural gas (LNG) exports, lithium, or biofuels. On the other hand, the agrifood industry could find better conditions for its products, such as soybean meal, corn, wine, or citrus.

Likewise, extractive industries, and especially lithium mining in the provinces of Jujuy, Salta, and Catamarca, could benefit from new U.S. investments due to Washington’s interest in diversifying the supply of minerals necessary for its green energy technologies. In the same way, biotechnology and renewable energy projects may also find a better scenario for financing if the agreement includes formulas to encourage capital flows and technology transfers. The benefits, however, are not distributed equally across the board. If in the primary sector there are gains to be expected, the secondary sector, and especially the services sector, risks being left in the shade. Such an agreement could polarize Argentina even more, accentuating internal economic asymmetries that separate an export-promoted and currency-rich geography from industrial provinces like Buenos Aires, closer to the real economy.

Strategic Safeguards

If Argentina wants to take advantage of the opportunities that a trade agreement between Argentina and the United States could provide, it will need to strategically secure certain conditions during the negotiation process. These include phased liberalization with gradual tariff reductions that give domestic industries time to adjust; explicit exclusion of sensitive sectors such as the automotive and pharmaceutical sectors from immediate liberalization; reciprocity guarantees on investments that require U.S. investments to enter to incorporate value into the local chain, not to substitute it; technology transfer mechanisms that promote joint ventures and research and development partnerships, not just simple import substitution; and clauses preventing social and ecological dumping by guaranteeing fair labor and sustainability practices.

Without such conditions, the agreement would only increase Argentina’s dependency on raw material exports and weaken its industrial capacity.

Friendship Agreement or Rivalry

In sum, the trade agreement between Argentina and the United States could be a gateway or a booby trap. On the one hand, if the process is well managed, it can diversify Argentina’s export basket, attract investment, and open a direct line of negotiation with the most powerful economy on the planet. On the other hand, a poorly structured agreement could deepen structural imbalances, weaken the country’s productive apparatus, and reduce its policy space. For Argentina, the key will be to negotiate its position as a sovereign state that defends its national interest, prioritizes productive development, and re-industrializes as a primary national objective and not as a short-term diplomatic or political objective. The risks of a poorly done agreement include the possibility of opening up the country to deindustrialization, massive job losses, and fiscal exposure to uncontrollable risks. A well-structured and strategically balanced agreement, on the other hand, could be a key step towards a long-awaited process of modernization and sustainable development. In short, whether the United States is a true strategic ally or a potential rival will be defined by Argentina and its ability to assert its economic interests, defend its industries, and demand reciprocity in the opening of markets and the exchange of knowledge. Much is at stake, and the outcome of these negotiations will shape Argentina’s future role in the international economic order for generations to come.