Thinking Ahead of the Curve

Q: What is your perception of the development and implementation of the structural reforms by the present administration?

A: The approval of structural reforms has been one of the greatest achievements of the present administration, without them we would not have such a positive growth outlook. Among those, the new anticorruption laws are one of the most significant legislative changes. Despite being overshadowed by a number of factors, this will have an important impact on the perception of the country, both nationally and internationally in a short and medium term.

Q: What changes are needed for Mexico to continue being competitive and attractive to foreign investors?

A: The government is doing what needs to be done. Although the country’s economic growth is not as stellar as we would like, we are still experiencing growth. At a macroeconomic level, certain elements like inflation, that could be considered negative, are being contained by the actions enforced by Banxico. When it comes to managing macroeconomic foundations of the country, authorities are doing a good job. Banxico is taking appropriate measures, and the management of public finances is under control.

We want to attract more foreign investment, but to do this we need to work on changing many perceptions. This will be achieved only through having a strong SNA and ensuring that laws are enforced.

Q: How can investment in strategic industries such as energy be reconciled with populist demands arising from nationalistic tendencies?

A: We must be aware that in the world we are living, we are no longer only competing with our next-door neighbor, we are competing with foreign companies that are better than Mexican companies at what they do. I think that in certain sectors, we have not taken on the responsibility of being innovative and creating competitive processes. More than the conditions imposed by a system or a government, and instead of trying to close the door to international participation, you need to step up and offer better services.

Q: What must companies keep in mind when deliberating their potential participation in the federal ZEEs program?

A: For them, the most important thing is to understand the country’s business culture. Doing business in Monterrey is not the same as doing business in Tijuana or Juarez City. A ZEE in the southern part of the country where people and businesses are not accustomed to international connection, will require a period of understanding and communication, because people can be very protectionist. Certainly, the creation of these zones will help to open the country to international companies; the states in the south will be forced to receive the operations of a number of companies.

Q: Baker McKenzie created an innovation committee that will incorporate tools like design thinking. What spurred the firm to apply design thinking on a global scale?

A: At Baker McKenzie, we like to think ahead of the curve. We try to be strategic partners for our clients, but we cannot be considered strategic partners if we only act as reactive advisers. Therefore, our approach to our clients has been through industry knowledge. If, for example, we want to provide the best possible services to our clients in the pharmaceutical industry, we need to become experts in the field from different approaches.

We have achieved a high level of expertise in every one of our practices through an innovation committee that helps us to be on the front lines when it comes to providing what is required in any particular industry. The automotive industry in Mexico, for example, is enjoying rapid development. So, our questions are: what does the automotive industry need to experience even more growth? What does the industry need to stay ahead of the renegotiation of NAFTA? How do we anticipate the coming discussion of rules of origin? We must innovate and prepare ourselves to answer these questions.