More glum news for Mexico’s economy, which has been growing at turtle speed this year. Growth in May came in below expectations – again.
© The Financial Times Ltd 2014 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
View posts by country or region
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 »
Its plan to divest assets – probably unprofitable rural subscribers, as well as cellphone towers – is its opening gambit. Will it be enough?
The mettle of Mexico’s new independent telecoms regulator, the IFT, and its perpetually smiling president Gabriel Contreras, will now be put to the test.
Stop press: amid the ever-present rivalry between Latin America’s top two economies, Mexico has just overtaken Brazil as the region’s biggest car producer.
In the run-up to his election victory in 2012, Enrique Peña Nieto pledged to create a new 40,000-strong paramilitary gendarmerie for Mexico to help combat security problems stemming from the country’s war on drugs.
Plans for the force were whittled back to 10,000, and seemed to be eternally delayed. But next month Mexico’s new police force is finally ready for launch, albeit with a more slimmed-down starting line-up of 5,000 new officers. Continue reading »
Mexico’s historic energy reform has understandably whetted the appetites of oil companies worldwide. But, concerns are growing that Mexico’s tax terms might turn out a little too tough – potentially scaring off, rather than attracting, investors.
How so? Let’s recap: Mexico expects to offer a range of licences and profit – or production – sharing contracts to private investors in a tender next year, the terms of which may become known in late in 2014. Continue reading »
Mexico’s historic energy reform whizzed through Congress in the blink of an eye in December, when legislators rewrote parts of the Constitution to erase nearly eight decades of state control of the sector.
Passing the laws to implement the reform, by contrast, is like wading through mud. Continue reading »
When the presidents of Chile, Colombia, Mexico and Peru meet on June 19 and 20 for the ninth Pacific Alliance summit in Nayarit, Mexico, they’ll likely debate a proposal that could transform their quietly successful pact while boosting Latin American unity.
At the urging of Chile’s Michelle Bachelet, the gathering is expected to broach the potential integration of the Alliance, which was formed among the four countries in 2012, and Mercosur, an older grouping that includes the regional heavyweights of Brazil and Argentina. The issue would represent a crossroads for the Alliance, however, since Mercosur does not generally share the enthusiasm for international trade shown by its neighbours on the Pacific coast. Continue reading »
It is mind-blowing that in the 21st century, sexual violence is still used as a tactic of war. Every year, thousands of people become victims of this heinous practice. Ninety-eight per cent of them are women and girls who are sexually abused in a spree of revenge or terror against civilian populations embedded in an armed conflict. Added to the profound pain and trauma caused to the victims, the worst part of this reality is that most cases go unpunished. This is unacceptable and we cannot continue to bear new atrocities. Continue reading »
Ever eager to point out exemplars, the World Bank this week made a point of praising Mexico as one of the few countries where “ambitious and advanced reform agendas” were aiming to transform the economy.
Mexico has already passed some laws liberalising the labour market and improving education, but the centrepiece of President Enrique Peña Nieto’s reform effort is to introduce competition into public and private monopolies: the energy sector, dominated by the state-owned Pemex, and telecoms, where Telmex has been in a hugely powerful position ever since the system was privatised in 1990.
A glimmer of light at the end of a (long) tunnel? Mexico’s industrial production tip-toed up 0.6 per cent in April compared with March.
Now, it wasn’t a very big increase, but it was some welcome good news to an economy where the central bank, cutting interest rates in a shock move last week, cautioned that even the disappointing new expectations of growth for this year (the bank is predicting 2.2-3.3 per cent; the government 2.7) are unlikely to be met. Continue reading »
Mexico’s Congress should this month pass legislation designed to give the country’s fixed and mobile phone users access to greater competition in a market dominated by Carlos Slim’s Telmex fixed-line company and Telcel mobile network.
Slim’s companies have 80 per cent of Mexico’s fixed-line market and 70 per cent of mobile, so the reform aims to boost consumer choice by giving rivals cheap access to his network in order to catch up – something that naturally has not gone down too well with Slim.
But is this so-called asymmetric regulation a bad thing? Will it boost competition? And will it boost investment? Continue reading »
|About this blog||Morning espresso||Blog guide|