Miguel Jáuregui
Founding Partner
Jáuregui y Del Valle
View from the Top

Implement Clear Policies, and Enforce Them

Thu, 09/01/2016 - 16:20

Q: How do you expect Mexico to accommodate electric and hybrid vehicles?

A: The government needs to establish clear policies to spur innovation and protect the environment. Mexico needs to be consistent in applying regulations, especially for car usage and environmentally unfriendly vehicles. Vehicular compliance should be enforced, whether they are government or commercial units, private or part of the public transportation system. A focus on public transportation is also needed. Two million vehicles will enter the market every year by 2020. The goal should be to create an integral mobility plan, an improved public transportation network and to develop adequate infrastructure.

Q: How will international trade deals affect industry?

A: New commercial agreements such as TPP will boost Mexico’s presence in the global marketplace, diversifying operations outside the NAFTA region. The TPP will also strengthen our position as a key manufacturing location for Just-in-Time (JIT) operations, resulting in reduced logistics times and sourcing costs. The structural reforms implemented by President Enrique Peña Nieto are consolidating. Mexico’s macroeconomic figures are stable, competitive and attractive compared to other regions. The goal is to have a domestic market with disposable income arising from better salaries.

Q: Which measures could be taken to grow domestic demand in the medium and long term?

A: The expansion of the middle class and higher salaries will be crucial for boosting purchases of consumer durables such as vehicles. The main challenge for Mexico is to address the segment of people who do not have acceptable economic levels and living conditions. A solution would be to enhance education opportunities and create jobs to foster upward mobility.

Q: What factors could hinder Mexico’s attractiveness for foreign investors?

A: As soon as Mexico does away with impunity, among other ills, it will be better perceived and will attract more foreign investment. Eliminating impunity will improve Mexico’s international image while shifting the focus to education, rule of law, growth and respect for property.