Canada, Mexico attract record foreign investment by 2025


Borderlands is a week of developments in the world of trucking and business along the US-Mexico border. This week: Canada, Mexico attract record foreign investment by 2025; Texamericas Center Hosts Tokyo Delegation to Promote Japan-Texas Investment Pipeline; And Twin Eagle is expanding rail capacity at the Big Spring Transload Terminal.

Canada and Mexico attract record levels of foreign direct investment (FDI) in 2025, underscoring North America’s growing role as a global manufacturing and supply chain hub despite trade-policy volatility.

Canada posts strongest run in 18 years

Foreign direct investment in Canada was $96.8 billion in 2025, the highest level since 2007, according to Statistics Canada.

Fourth-quarter inflows reached $25.1 billion, largely driven by mergers and acquisitions, particularly in business and transportation, manufacturing, and corporate and enterprise management.

U.S.-based investment remained the largest contributor to Canada’s annual inflows, while all net investment in the country was outbound for the year — marking a sharp turnaround from 2022, when capital flight overtakes inflows.

Meanwhile, Canadian direct investment abroad fell to $79 billion for the year, the weakest level since 2020, reflecting a rebound in overseas mergers and acquisitions.

Mexico was at an all-time high

Mexico also closed in 2025 at a historic peak, collecting $40.871 billion in FDI, an increase of 10.8% year-on-year, according to the Ministry of Economy.

The result marks the fifth consecutive year of Mexico’s FDI growth and the highest level in a single year.

Profit reinvestment accounted for 67.7% of total revenue, while new investment rose 132.9% to $7.38 billion, with new project launches related to nearshore and industrial development.

The United States remains Mexico’s largest investor, accounting for $15.877 billion, or 38.8% of total revenue.

Canada and Spain were also among the top sources of capital, reinforcing the deepening integration of North America under the USMCA.

Regional supply chains are deepening

Global FDI flows to developing economies have decreased in 2025, according to UN projections by Mexican officials, paralleling investment increases.

For logistics, manufacturing and cross-border freight operators, the record flows point to a commitment to continued investment in production capacity, industrial real estate and transportation infrastructure across the continent.

While tariff volatility and political uncertainty remain risk factors heading into 2026, 2025 data suggests investors are still long-term bets on North America as a leading manufacturing platform.

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