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News Article

New Business Model Drives Internationalization

Wed, 01/25/2012 - 09:16

Carlos Campos Echeverría, Managing Partner of BC Legal Consulting, believes that in the years to come, Mexico will develop into an even more attractive place for foreign companies to do business, but he does not think that the next President, the Senate, Congress, Pemex or the Mexican people will be responsible for bringing about this change. Rather, he believes it will all be changed by the integrated service contracts that were created in the 2008 Energy Reform. “It is the economy that has the power to change a country if development is supported by a legal framework. Politicians can attempt to change Mexico, but if there’s no economic development, they won’t succeed. Entrepreneurs can do it, but if there’s no legal regime, they won’t manage it. The incentive-based development contract is the determining factor that will change this country, because it introduces a new business model that has nothing to do with Congress, politicians or the President. Of course, all of these factors have an influence on matters, but the major catalyst will be the business environment.”

Rather than rushing to bring in any major new reform, Campos Echeverría believes that Mexico should wait and watch the development of the current contracting system. “The new contracting scheme has already been accepted in the national mindset and conscience, and Mexico will continue to produce oil for the next 80 years. When we get to experience the benefits, such as new schools and hospitals, our children having jobs in new companies entering the Mexican oil and gas industry, we will continue to evolve as a country.”