Inclusion, Diversification, Innovation:Pillars for FDI Attraction

Q: What is the main appeal of Mexico as an investment destination?

A: Mexico has a dynamic and attractive economy for investment with slow but steady growth. Our industry is increasingly linked to global value chains through productive companies that grow at an accelerated pace and generate innovative products and services. Another element attracting FDI to Mexico is the federal government’s initiative to eliminate corruption, which will allow for fair competition among all investors. Mexico is increasingly perceived internationally as a solid investment destination but the country needs a one-stop solution to serve as a gateway for foreign companies looking to set up business in Mexico.

Q: What is the administration’s strategy to continue promoting the country after the termination of ProMéxico?

A: Economic promotion is important to the federal government and the Ministry of Economy. This will not change now that ProMéxico no longer exists. Our goal is to take the best practices developed by that organization and others and apply them to continue stimulating economic development. The new economic promotion strategy will come under the jurisdiction of the Global Economic Intelligence Unit directed by Sergio Silva, in coordination with state and municipal governments and the Ministry of Foreign Relations (SRE). The objective is to replace ProMéxico’s 46 offices with 150 points of contact across the world focused on foreign commerce. We are also coordinating with state governments and economic development units to properly channel economic support from the federal government to companies that need it. 

Q: What elements of Peña Nieto's trade promotion policy will be kept in place and what will be changed?

A: We will use data mining to accurately determine Mexico’s strategic products and sectors and to identify how to best  promote growth. We will analyze each region to evaluate their ability to produce added value products, which will in turn generate better jobs with better salaries for our population. Our strategy will also take into account an analysis of the global supply chains in which Mexico participates. 
The Ministry of Economy follows three pillars: inclusion, diversification and innovation. Inclusion refers not just to companies that can enter global supply chains but also companies that can support the economic development of the communities where they are located. Our inclusion strategy also targets exports from more regions in Mexico, as most exports originate in just 11 or 12 metropolitan areas. In terms of diversification, our goal is to grow the number of companies that export their products. At this point, 90 percent of all exports are done by big companies and we want SMEs to increase their participation. Moreover, five or six products represent 40 percent of Mexico’s exports, which are mainly destined for the US. We need a diversified export chain in terms of products and destinations as this will allow us to minimize risk. Regarding innovation, our goal is to be more competitive in areas with higher added value, which will also permit the generation of better work conditions in Mexico. 

Q: What is your message for potential investors that have put their projects on hold until they get a clear perspective of the administration’s policies?

A: The country is an investment destination with dozens of trade agreements that include first-rate protection schemes. Some infrastructure projects have been canceled but these decisions were taken after a revision of priorities and contracts. The goal of this government is to reduce inequality in Mexico in a responsible way by avoiding an increase in taxes or debt. The government is also developing more social programs and investing in infrastructure projects that will increase public spending and increase the country’s connectivity and competitiveness, especially in the south. These policies will lead to a healthy business environment. Mexico will continue to be open for business as it is implementing all the necessary structural changes that will lead to growth and will continue respecting the property rights of all investors