ICC Mexico: Fostering Economic Prosperity

The International Chamber of Commerce Mexico (ICC Mexico) has once again urged the incoming government of Mexico to bridge the gap with the private sector and capitalize on growth opportunities, foreign direct investment attraction, and job creation stemming from nearshoring. Furthermore, it emphasizes the need to address critical issues such as access to clean energy, workforce training, the development of SMEs to integrate them into the export sector, and above all, the assurance of a legal environment conducive to business operations.

Kenneth Smith, Vice President of the Economic Policy Group, ICC Mexico, highlights that despite receiving a record US$36 billion in foreign investment, Mexico is failing to leverage its advantages to attract investment for nearshoring, despite its proximity to the United States and the unrestricted access provided by its network of 14 treaties with 50 countries. Meanwhile, ICC points out that a country lacking these advantages, such as Brazil, is receiving around US$60 billion in foreign investment. 

Ricardo Ramírez, President of the Trade and Investment Policy Commission, ICC Mexico, emphasizes the need for Mexico to create conditions that comply with international treaties to ensure legal certainty. Ramírez stresses the importance of strengthening the relationship with the United States within USMCA, while simultaneously improving national infrastructure to enhance Mexico's attractiveness for investment, further solidifying its status as a key trading partner of the United States. 

Smith also notes that the ongoing trade war between the United States and China, coupled with the tariffs imposed by the US on Chinese goods, presents additional opportunities for Mexico to continue serving as a substitute for China in exporting products to the US market. He underscores the crucial role of upholding the rule of law as foundational for Mexico's future development, emphasizing that many of ICC Mexico's proposals for the 2024-2030 administration align with this objective. 

On May 16th, ICC Mexico outlined its proposals, including inclusive green growth, innovation for all, peace and prosperity, financing for development, and trade and investment. These points underscore the organization's belief that Mexico must take immediate action to address climate change and foster a cleaner, more robust economy. This involves facilitating the participation of businesses in energy markets and other strategic sectors to ensure sustainable development and long-term prosperity.

Various experts and entities are calling for private sector involvement to bring about economic improvements in the country. Angél Nicolás, Director General, EMMI Sustainable Infrastructure,  talked with MBN about the issue, stressing the need for collaboration between the private sector and governments.     

Nicolás emphasizes that while businesses should invest in and develop more sustainable projects in Mexico, administrative aspects such as permits are dependent on government facilitation. The synergy between governments and businesses is crucial for the successful execution of projects, he says. Nicolás underscores the importance of seizing these advantages, particularly considering the affordability of photovoltaic technology and advancements in battery technology. He emphasizes the need to capitalize on these developments to create profitable projects, citing opportunities for energy exportation to regions like the United States and Central America, thus positioning Mexico favorably in the global energy market.