Mexico cites fiscal constraints amid industrial subsidy investigations

Mexico's Ministry of Economy has stated that national fiscal constraints prevent the federal government from providing widespread industrial subsidies. This defense comes amid a Section 301 investigation by the United States Trade Representative (USTR) regarding structural excess capacity in manufacturing sectors. The Ministry noted that Mexico's federal budget remains below 25% of its GDP, compared to approximately 27% in the United States and a 34% OECD average.

Separately, tax law specialists in Tijuana have criticized current federal fiscal practices. Adolfo Solís Farías, a tax attorney, alleged that the government has replaced structured fiscal policy with repressive and discretionary mechanisms to increase revenue. He warned that social programs may be used as political tools to secure votes during upcoming electoral processes, rather than being directed toward infrastructure and public works.

Data from the World Trade Organization indicates that Mexico provides significantly lower subsidy levels than major members, including the United States.