It’s not just about oil. That is, in a nutshell, Mexico’s message to investors. What about halal food? Or ships? Videogames, anyone?
Oil and gas prospects are obviously at the front of Mexico’s investment prospects – the country’s energy reform is expected to attract as much as $50bn in foreign investment in 2020.
But there’s more, the government says. And not just in the increasingly high-tech manufacturing industry that Mexico has embraced – it is the world’s fourth exporter of cars and first of flat-screen TVs, and its aerospace industry has rocketed. Continue reading »
Ever pragmatic, the boss of Pemex, Mexico’s revamping state oil company, knows the first barrels of oil extracted from the enticing deepwater prospects in the Gulf of Mexico under the country’s historic energy reform will probably be processed and shipped through existing US infrastructure.
But don’t be tempted to think that Pemex is taking its eye off Asia. Continue reading »
By Scott Wallsten of the Technology Policy Institute
Mexico has long suffered from an underperforming telecommunications sector dominated by a single company, América Móvil. The new government made reinvigorating the sector a key reform goal. It added rules governing telecoms to Mexico’s constitution and last month the president signed a “secondary law” further detailing those changes.
Some parts of the law are promising. It creates a new, more independent and tougher regulator to replace a weak and often ineffective one. It introduces regulations that América Móvil saw as so costly that it announced plans to divest in order to avoid them – which could lead to the happy outcome of more competition with no need to impose the costly regulations. Mexico should be proud of these achievements.
Another part of the law, however, might undermine everything. Continue reading »
Growing in Brazil has long been in the sights of Carlos Slim’s América Móvil. The company has almost as many subscribers there as in Mexico, where it is under regulatory pressure.
So teaming up with an existing carrier to buy the country’s No. 2 cellphone carrier might be a smart move.
According to Bloomberg, América Móvil is talking to Brazil’s Oi about teaming up to make a joint bid for the Brazilian operations of mobile operator TIM. Continue reading »
Mexico’s energy reform is all about boosting investment and thus production. But the million dollar question is: just how much investment will flood in, and to what type of resource, when fields are put on the block starting from next year?
Ernesto Marcos, a former CFO of Pemex, the Mexican state company, has hazarded what looks like the first comprehensive guess. Continue reading »
Mexico’s 2015 budget may contain a slightly lower growth forecast than originally anticipated, but compared to other heavyweights in Latin America, things are still looking good.
In the 2015 budget presented to Congress, Mexico’s government pencilled in a GDP growth goal for next year of 3.7 per cent. As recently as April, the government had been sticking to a 4.7 per cent forecast. Even though a full point lower than that earlier forecast, it’s still ahead of this year’s goal of 2.7 per cent, which the government has ratified. Continue reading »
Carlos Slim’s telecoms empire may be being chopped down to size in Mexico but his influence in his home country looks anything but on the wane – indeed, it could be set for a brand new take-off in the shape of the Mexico City airport.
It’s all speculation so far but not only is Carso, one of the groups in Slim’s empire, reported to be interested in bidding for the expected $9bn project, but his son-in-law Fernando Romero, in partnership with Britain’s Norman Foster, is believed to have won a contract to design what will be President Enrique Peña Nieto’s crown jewel infrastructure project. Continue reading »
Free-trade champion Mexico is on a reform drive that promises new openness in key sectors of its economy, especially energy. So what is it doing slapping protectionist measures on its shoe industry?
Fighting unfair competition from China, officials say.
The raft of new measures to protect Mexico’s industry – which makes 240m pairs of shoes a year – sounds distinctly off message, especially since President Enrique Peña Nieto has made boosting trade ties with China a priority. (He met his Chinese counterpart three times within six months to forge closer relations.) Continue reading »
Mexico has a brand new police force, the gendarmería tasked with beefing up the country’s crackdown on crime.
But according to the Inter-American Development Bank (IDB), it may have a powerful crime-fighting weapon already: remittances. Continue reading »
Full marks for Enrique Peña Nieto: the Mexican president’s energy reform is in the bag, so it’s full speed ahead now to cheaper energy, faster growth, higher investment and more jobs, right?
That’s the plan, and Mexico certainly looks to be on track – indeed, the government is so aware that it has not a moment to lose that with the ink barely dry on the legislation, it was already announcing what private investors could look forward to bidding for as the sector is opened up for the first time since 1938. Continue reading »
More glum news for Mexico’s economy, which has been growing at turtle speed this year. Growth in May came in below expectations – again.
According to the state statistics office, growth in May was a disappointing 1.4 per cent, below market forecasts for nearer 2 per cent. Continue reading »
After a false start this year, it’s time to rev those engines: Mexico’s dreams to return to Formula One are finally back on track.
The government has announced a five-year 2015-19 deal to host the race, marking Mexico’s return to the circuit after an absence of 23 years. Continue reading »
After what has felt like an endless waiting game, Mexico’s energy reform is finally entering the home straight.
This weekend Senate members approved key bills to govern the new-look hydrocarbons sector, as well as the energy sector and the state utility, CFE, and oil company, Pemex, that will lose their monopolies under the sweeping reform. There is just one section still to be passed. Continue reading »
Investment in Mexico: it’s the real thing. Coca-Cola’s announcement that it will pour $1bn into the country every year until 2020 is just the latest in a string of recent big-ticket spends in a country where manufacturing is leading the country out of an untimely economic slump.
The US beverage maker, whose operations in Mexico include eight bottling groups in Mexico, juices and dairy as well as sodas and water, said it would invest more than $8.4bn from 2014-2020, bringing the total invested in Mexico during the decade to $12.4bn. Continue reading »
As secondary legislation to enact Mexico’s historic energy reform chugs through Congress and the clock ticks towards a December 2015 deadline for state oil company, Pemex, to be transformed into a “state productive enterprise”, a new report from the Natural Resource Governance Institute (NRGI) makes for interesting reading.
The think-tank has studied a dozen national oil companies and distilled its findings into key recommendations. Pemex, a company about to discover competition as its nearly eight-decades-old monopoly on the sector is flung open, currently hands over the bulk of its revenues to the state in the form of taxes, and will face the challenge of how to invest like a private company while still propping up the state for years to come (the government says a transition to a lower tax burden will take a decade). Continue reading »